Agenda item

To declare the land located on the West Side of Tunnel Road, West Bromwich surplus to Council requirements.

Approval was sought to declare the land located on the west side of Tunnel Road, West Bromwich surplus to Council requirements.

Approval was also sought to dispose of the freehold reversionary interest in approximately 0.22 hectares (0.53 acres) approximately of land situated on the west side of Tunnel Road, West Bromwich, to the existing tenant, on terms and conditions to be agreed by the Director - Regeneration and Growth.

Additionally, in the event that the terms for disposal of land were not agreed by the tenant, approval was sought to authorise the Director – Law and Governance and Monitoring Officer to dispose of the freehold interest in the land on the open market and otherwise on terms and conditions agreed by the Director – Regeneration and Growth.

Reasons for Decision

The report sought to approve to dispose of the freehold reversionary interest in a parcel of Council-owned land situated on the west side of Tunnel Road to the current tenant, or if terms were not agreed, to effect a subsequent sale of the land on the open market subject to the existing lease.

The land was currently leased to by virtue of a 99-year lease from 1958 and this would continue with the Council receiving a fixed annual rent of £120.

Under Planning allocation, the land was situated within an area identified as Potential High Quality Employment Land and was not affected by any current or future Council regeneration projects.

Alternative Options

The Council could retain the freehold of the ground lease which would continue to yield the sum of £120 per annum. There would be minimal future costs to the Council as the lease was a ground lease with the upkeep and maintenance of the building/s, together with all outgoings, being the tenant’s responsibility.

The existing lease could be surrendered and a new longer lease granted with rent reviews at 5-year intervals. This, however, would not provide the tenant with the comfort he required to attract inward investment and additionally it was an isolated interest which the Council would consider for disposal.

Alternatively, the Council could consider disposal of the freehold on the open market, but this may not generate the same level of capital receipt and additionally it may jeopardise the tenant’s expansion proposals including the opportunity to create further business and employment opportunities within Sandwell.

Agreed that approval be given to:-

(1)          declare the land located on the west side of Tunnel Road, West Bromwich surplus to Council requirements;

(2)          authorise the Director – Law and Governance and Monitoring Officer to dispose of the freehold reversionary interest in approximately 0.22 hectares (0.53 acres) approximately of land situated on the west side of Tunnel Road, West Bromwich, shown for identification purposes only edged black on Plan No SAM/49100/010 attached, to the existing tenant, Mohammed Danish Vayani, on terms and conditions to be agreed by the Director - Regeneration and Growth;

(3)          in the event that the terms for disposal of land referred to in Resolution (2) above does not, for whatever reason, proceed to Mohammed Danish Vayani, to authorise the Director – Law and Governance and Monitoring Officer to dispose of the freehold interest in the land on the open market and otherwise on terms and conditions agreed by the Director – Regeneration and Growth;

(4)          that the Director – Law and Governance and Monitoring Officer be authorised to enter into or execute under seal, if necessary any other related documentation in connection with the disposal of the site on terms and conditions to be agreed by the Director - Regeneration and Growth.