Agenda item

This report sets out the proposals for a Maintenance Strategy in respect of General Fund Corporate Property Assets.  The Strategy will establish the approach the Council will adopt for ongoing investment in its corporate property estate.

The Leader of the Council presented the report which outlined a new strategy for corporate assets.

The absence of a maintenance strategy for corporate assets and a lack of investment in the past had meant that some of the Council owned buildings (car parks, leisure centres) were in a bad state of repair.

A condition survey of all corporate assets was being undertaken to enable a current position and baseline to be established.

The Deputy Chief Executive informed the Committee that the 2024-25 budget included £1m to support investment into the Council’s assets. The condition survey and the framework set out in the Maintenance Strategy would drive forward how the Council prioritise repairs of assets.

The strategy would also provide a framework in order to target the finite resource in the best way against the Corporate Plan and service delivery.

It was noted that leisure assets were one of the most prominent asset bases where significant investment was required. These assets were heavily used by the public and any service interruption would cause a detrimental impact on the service offers.

The Maintenance Strategy linked to the Asset Management Strategy and the Disposal Strategy and all three strategy needed to complement each other.

Members may be requested to consider similar requests for funding in future budget years.  

The Head of Property and ICT confirmed that the Council had invested in a new asset management system for the Corporate Property Team which would keep a record of the condition surveys and enable the Council to forecast accurate budgets going forward.

The Cabinet Member for Housing and Planning confirmed that Lincolnshire County Council Executive, had approved funding of £850,000 for Deepings Leisure Centre. This figure would be given to Deepings Community Interest Group to assist with costs of refurbishment and operating the Deepings Leisure Centre building, subject to certain caveats.

One Member noted that some of the Council’s assets included leasehold properties. It was queried whether the Council would maintain the leasehold properties in the future or would consider the disposal of the leasehold assets and rebuild elsewhere.

As a leaseholder, the Council had an obligation to keep certain buildings in a state of repair. Each lease agreement would be specific around the maintenance responsibilities of the Council.

(Councillor Max Sawyer joined the meeting at 14:25)

One Member queried whether there was any financial information available on the Cecil Family Trust.

The Leader of the Council confirmed that he would have a discussion with the Member on Cecil Family Trust, following the meeting.

It was suggested that the document be made clearer that it related to freehold assets only.

The Deputy Chief Executive clarified that the appendices provided a fairer representation of the asset base through the General Fund. The HRA had its own maintenance responsibilities, therefore, the maintenance strategy only related to any corporate property estate. Within those leasehold classifications, there were significant sums of money that were needed from the Council to prevent dilapidation issues arising when a lease was over.

It was queried whether Lincolnshire County Council had responsibility of Grantham library.

One Member suggested that some Grantham assets could be handed over to the newly established Grantham Town Council. Concern was raised that backlog of maintenance may complicate the process of handing over the assets.

The Deputy Chief Executive clarified that asset transfers had to be mutually agreed between the two parties involved. It was expected that any potential purchases would have their own condition survey and be fully sighted on the obligations they were taking on and be reflected in any financial transaction that takes place.

The Head of Property Services and ICT highlighted that historically, the Council had entered into a lease with the Issac Newton Centre owners and had sub-let Grantham library to Lincolnshire County Council. The Council were in the process of removing this clause enabling the Issac Newton Centre owners and Lincolnshire County Council to implement a lease directly between themselves.

Clarification was sought around the type of lease agreement Lincolnshire County Council had with Bourne Leisure Centre.

The lease agreement for Bourne Leisure Centre was a 99 year lease, signed in 1990. It was nominal rent, however, the lease included a full repair and insurance arrangement.

It was queried as to which out of the 10 leasehold properties listed, were non-repairing or repairing.

ACTION: For Members to receive clarification on which leases were non-repairing and repairing out of the 10 leasehold properties listed.

The report would be put forward for Cabinet approval at the earliest opportunity.

It was queried whether leasehold property owners carried out yearly or 5-yearly inspections.

Inspections were to the obligation of the owner of the building, not the Council. The Council had an obligation to keep assets in good repair.

That the Committee:

Recommend that the Maintenance Strategy be presented to Cabinet for approval at the earliest opportunity.