Issue - meetings

To delegate to the chief executive the authority to conclude the freehold acquisition of the building.

Note: Both the open and closed versions of this report were listed as Item 24 on the agenda.

This item had not been circulated five clear days in advance of the meeting. The chair agreed to accept this item as urgent because if the council were to proceed in its acquisition of 160 Tooley Street, the seller required exchange of contracts and completion of the transaction on or before 14 December 2012.  The opportunity to acquire the freehold would be lost if the decision was delayed for a further meeting to be held. The consequences of such a delay would be to forego the substantial financial advantages and operational flexibility (arising as a result of no longer being bound to the terms of the existing lease).

RESOLVED:

1.  That the circumstances leading to the sale of the freehold interest in 160 Tooley Street and actions taken by officers and their advisors to assess the council’s position in respect of this sale be noted.

2.  That the acquisition of the freehold interest in 160 Tooley Street be approved in principle, subject to the agreement of final heads of terms and purchase price.

3.  That authority be delegated to the chief executive, advised by and in consultation with the strategic director of finance and corporate services and head of property to:

a.  Negotiate terms and enter into binding contracts for the purchase of the freehold interest in 160 Tooley Street

b.  Agree the amount of the final bid offered and other transactional terms

c.  Agree the financing structure adopted to fund the acquisition of the asset.

4.  That the strategic director of finance and corporate services include the ongoing savings to the council within the policy and resourcing strategy to be considered by cabinet and council assembly in January and February 2013.

5.  That the strategic director of finance and corporate services, subject to successful completion of the acquisition, report any in year savings that accrue within the third quarter revenue monitoring report due to be received by cabinet in February 2013.

6.  That it be noted that subject to commercial confidentiality the cabinet and members of overview and scrutiny committee will receive confirmation on completion of the purchase, full disclosure of the purchase price and financial benefits arising from the acquisition for the benefit of openness and transparency.

NOTE:  In accordance with the provisions of section 22.1(b) of the overview and scrutiny procedure rules (decisions for urgent implementation), the chair of overview & scrutiny committee has agreed that this item may be treated as a matter of urgency and is therefore not subject to call-in.