Issue - meetings

To declare Grafton Lodge, Grafton Road, Oldbury, former Adult Services led care home, surplus to all council use.

Resolved:-

(1) That approval be given to declare Grafton Lodge, Grafton Road, Oldbury B68 8BJ, as site plan SAM/20100/007, former Adult Services led care home, surplus to all council use.

(2) That the Director of Law and Governance and Monitoring Officer be authorised to dispose of the site, on terms and conditions to be agreed by the Director of Regeneration & Growth, in consultation with the Director of Housing and Director of Finance.

                  Approval was sought to declare Grafton Lodge, Grafton Road, Oldbury, the former Adult Services led care home, surplus to all Council use. 

It was proposed that the site should be advertised on the open market for sale including to all the Registered Providers who are active or interested in being active in Sandwell.

The proposal to redevelop the site for residential purposes would be subject to a selection criterion with percentage weighting to price, tenure mix, and any other required factors. It may also be necessary to consider managing the development outputs via a restrictive covenant.

An external valuation has been undertaken by Lambert Smith Hampton dated 6January 2022. If the site were sold for re-use as a care home the value would be in the region of £630k. If the site was sold and redeveloped for housing, then the current market value would be in the region of £600k. Both valuations were approximately in line with the council’s current holding value as at the 31March 2020 of £644k.

The Chair of the Safer Neighbourhoods and Active Communities Scrutiny Board questioned whether the option to lease out to a private provider was explored and if the option of building Council housing on the site was considered.

In response, the Cabinet Member for Regeneration and Growth stated he would undertake to provide a response to this query and would report back to the member.

                  Reasons for decision

Disposal of the property is sought to provide much needed housing within Sandwell. Disposal and subsequent redevelopment would also remove the ongoing management costs associated with an empty building.

The former care home and current site have been declared surplus to both Adult Services requirements and wider council service provision.

Alternative options considered

To retain the asset in the General Fund. The building was currently surplus to General Fund needs. There was an opportunity to make better use of this asset and remove ongoing revenue and maintenance costs.

Subject to no realistic bids being received or bids not meeting the set criterion, via the open market exercise, the asset could be considered for appropriation into the Housing Revenue Account. It would then support housing development, possibly modular build to deliver 100% affordable housing on the site. These homes would be part of SMBC stock. This option had been considered initially. However, by considering disposal on the open market for a developer or registered landlord to deliver the scheme the council would look to obtain a sizable capital receipt whilst still providing affordable housing helping to meet housing targets for the area. In the event of no suitable bids being received this option can be reconsidered.

Agreed:-

(1)     that Grafton Lodge, Grafton Road, Oldbury B68 8BJ, the former Adult Services led care home, as shown on site plan SAM/20100/007, be declared surplus to all council use;

(2)     that the Director of Law and Governance and Monitoring Officer be authorised to dispose of the site, on terms and conditions to be agreed  ...  view the full minutes text for item 130