Decision details

Disposal of Market Deeping Town Hall, Market Place, Market Deeping PE6 8EA

Decision Maker: The Leader and Cabinet Member for Business Transformation and Property

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

To seek approval for the freehold disposal of Market Deeping Town Hall by way of gift to Market Deeping Town Council.

Decision:

That approval is granted for the freehold disposal of Market Deeping Town Hall by way of gift to Market Deeping Town Council as outlined in report PD0117.

 

 

Reasons for the decision:

The site is surplus to requirements and SKDC has no future intentions to use the property. SKDC has not maintained the building over the last 10 years and therefore, the building is in some much-needed repair works.

 

The Town Council approached SKDC to purchase the property and are therefore a willing purchaser.

 

The value being paid at £1 is based on a restriction that the building can only be used as a Town Hall and for community purposes and a market value will need to be paid by MDTC if they request for this covenant to be released in the future, subject to internal approval.

 

It is recommended to proceed as per the above on the basis that SKDC has no intended future use of the premises and by gifting the premises to MDTC it will release SKDC of any ongoing liabilities to maintain, repair and manage the building going forward.

 

Alternative options considered:

The property was built in 1835 and has a frontage to the Market Place. The Town Hall is a Grade II listed building which is used by Market Deeping Town Council (MDTC) for the purpose of a Town Hall and general ancillary space for MDTC and the community.

 

MDTC have occupied the Town Hall by way of a lease, granted by South Kesteven District Council (SKDC) since 1977. The current lease was for a term of 7 years from 1st April 2007 and for rent of £200 per annum, the tenants were not excluded from sections 24 to 28 of the Landlord and Tenant Act 1954 so have rights to renew.

 

The premises requires refurbishment and maintenance works. The ongoing maintenance liability will be substantial and costly to SKDC. The roof is in a poor state of repair, and although the cost of the works has not been formally documented, the estimated refurbishment and repair cost in the region of c£50,000.

 

The Town Hall was declared in the previous asset management plan, as a surplus asset and SKDC continue to have no use for the premises.

 

MDTC have expressed an interest in purchasing the freehold and terms have been agreed to gift the asset as per the heads of terms attached in Appendix 1 to report PD0124.

 

The gifting will be for a value of £1 subject to a covenant restricting any use of the building as a Town Hall and community asset only. There will also be a ‘buy back’ clause in favour of SKDC which will give SKDC the opportunity to purchase the property back at a value of £1.

 

Upon the completion of the gifting of the Town Hall, SKDC will cease to have any ongoing liability to the maintenance, repair and statutory compliance.

 

Publication date: 09/07/2019

Date of decision: 08/07/2019

Effective from: 17/07/2019

Accompanying Documents: