Issue - meetings

Background:

The original purpose of the Inspiration Centre (the Centre) was to deliver diploma learning in vocational skills. It was designed to sit within the envelope of the new Strood Academy building but to be separately accessible.  Following a change of Government, funding for the original purpose had been withdrawn. Several abortive attempts were made to find a compatible alternative use.

The Academy subsequently indicated an interest in acquiring a 125 year lease of the Centre for a premium equivalent to the original build cost. Full Council, on 21 February 2013, agreed to declare the Centre surplus and delegated authority to the Assistant Director of Legal and Corporate Services in consultation with the Portfolio Holder for Finance to finalise the detailed negotiations and dispose of its interest in the Centre.  Additionally, Cabinet agreed on 11 March 2014 to delegate authority to the Assistant Director of Legal and Corporate Services, in consultation with the Portfolio Holder for Finance, to take all necessary steps to enable the purchase of the Inspiration Centre (by Strood Academy) to proceed including, but not limited to, writing a suitable letter to the Charity Commission regarding the Deed of Gift and declaration of Trust and entering into a Deed of Variation of the Deed of Gift and Declaration of Trust if required.

The Academy is unable to obtain consent from the Department for Education to acquire the Centre for a price exceeding its current open market value. This exact figure is still to be agreed, but is likely to be around 25% of the original build cost.  This report requested that the Cabinet delegate authority to the Chief Legal Officer, in consultation with the Leader and the Portfolio Holder for Resources to finalise negotiations and conclude any necessary agreements with the Academy to achieve the best consideration reasonably obtainable for the council’s interest in the Inspiration Centre.

The Cabinet considered options of refusing to dispose of its interest in the Centre at this time or to dispose of its interest in the Centre for a premium.

Reasons:

In order to facilitate the use of the Centre for continuing educational purposes and to realise a capital receipt.