Property Asset Strategy - Frequently Asked Questions (FAQs)

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This section provides further information to support you in your response to the Property Assets Strategy consultation.

Where we have cross referenced wider Council priorities such at the Climate and Poverty Agenda we wanted to provide the appropriate links to allow you access to greater detail.

What kinds of assets does the Council own and where are they?

The Council own a wide range of assets such as:

  • Industrial units and offices that are rented out to local businesses to support the local economy
  • Offices and other premises (such as Children’s Centres) that the Council uses to run services from
  • Depots for highways and recycling operations
  • Community centres
  • Country parks
  • Museums
  • Public toilets
  • Farms
  • Social housing
  • Public open spaces.

Our property assets can be land or buildings and they are spread out across Cheshire West and Chester

What assets is the consultation referring to?

While the Asset Strategy is relevant to the management of whole of the Council’s property portfolio the consultation has focussed on the operational and community estates.

What is a Surplus Asset and how is that determined by the Council?

An asset will be considered surplus if we can’t establish a long term use for it and it is poorly performing (for example, it is not energy efficient, requires significant ongoing maintenance to keep it viable, is beyond its economic life, or has high vacancy rates).

An asset is determined as surplus if one or more of the following criteria applies:

  • There is no longer any requirement from the council for the delivery of council services (including for economic growth or regeneration),
  • The asset will not assist the Council in undertaking its statutory (legal) requirements.
  • It is no longer financially or economically viable to retain the assetThere is no known community requirement for the asset.

Will communities be able to have their say on which assets are disposed of before they are sold or ownership is transferred?

Ward Councillors will be consulted, and communities will be made aware when an operational or community asset is identified as being surplus to Council requirements.

What methods of disposing of property would the Council use?

The methods of disposal available to the Council are the same as those afforded within the wider property market, and the Council does have the discretion within its powers to determine and use an appropriate method of sale.

The method of disposal will be dictated by the nature of the asset and the results of any pre-disposal investigations. The Council’s Head of Property will recommend the most appropriate method of disposal and this will be set out clearly in any decisions. Where appropriate, assets to be disposed of will be advertised on the Council’s website.

In making the decision on which method of disposal is most appropriate, the Head of Property will consider the merits of the four main methods of disposing of land and property interests:

  • Private Treaty - a sale of land negotiated with one or a small number of individuals. The land may or may not have been marketed as available for sale. A binding legal agreement is created on ‘exchange of contracts’ or signing of a development agreement between the authority and the purchaser or lessee.
  • Public Auction - a sale of land by open auction available to anyone. The sale will be publicly advertised in advance. A binding legal agreement is created upon the acceptance of a bid by the auctioneer.
  • Formal Tender - a sale of land by means of a process of a public advert and closed tenders submitted by a given date in accordance with a strict procedure. A binding legal agreement is created upon the acceptance of one tender by the Council.
  • Informal Tender (Sealed offers) - a sale of land after a public advert requesting informal offers or bids that meet a given specification or set of objectives. The Council may then negotiate further or more detailed terms with one or more individuals submitting the most advantageous bid or bids. A binding legal agreement is not created until the ‘exchange of contracts’ or signature of a development agreement between the authority and the successful bidder.

*In certain circumstances, it may be appropriate and advantageous for the Council to dispose of its interest to a special purchaser e.g., where additional value could be achieved through a disposal to an adjoining landholder (marriage value) or where other benefits can only be brought by treating with a particular buyer. The method of this sale may be Private Treaty or Development Partnership and will always be conducted with the benefit of independent property, valuation and legal advice.

What does the Council do with the money generated from the sale of assets?

There are statutory restrictions on how Councils can use capital receipts – the money generated from the sale of assets. These receipts can only be used to support capital expenditure (investment in assets) or to repay debt. They cannot be used to support the Council’s normal operating costs.

In Cheshire West and Chester, we use the money generated to support a borough wide capital programme of expenditure that is aligned to the Council Plan. Details of specific projects are published annually as part of the budget.

More information about the Council Plan is available here

More information about the Council Budget is available here

More information on the Capital Programme for this year is available here

What is a Community Asset Transfer?

A community asset transfer is the lease of building or land from the Council to an organisation for community benefit. It is defined as follows:

“the leasehold transfer of a Cheshire West and Chester asset to an organisation with a social purpose who plan to use the asset for the benefit to the local community”.

What is the process for a community asset transfer?

There are three main stages to a community asset transfer.

  1. Expression of Interest. The Council is receptive to receiving expressions of interest from interested parties regarding how a Council owned asset could benefit the community. The Council shall consider the merits of the application against the objectives of its Council Plan. It is important to note that the council is only able to transfer land and assets to a legally constituted entity (eg a company or trust).
  2. Business Modelling. This will vary between proposals but shall ensure that the organisations are capable of entering into a lease of the property and has the governance and capacity to take on the responsibility of the asset and the services they are seeking to deliver. Financial viability and sustainability of the proposal will have to be developed to reflect the existing condition of the asset and the ongoing maintenance, investment and outgoings (the asset’s liabilities).
  3. Approval. Subject to a party demonstrating they have a successful business model, approval to the transfer shall be sought under the Council’s governance structure and a transfer by way of lease of the asset progressed. In addition to the Lease, a Community Benefit Agreement shall be entered into to cover aspects of monitoring and reporting on social value outcomes.

How does the Council decide which assets to invest in from a climate perspective, and which are not capable of being improved?

The Council’s resources are limited and a significant aim of the Council Plan is to be carbon neutral by 2030. Council assets are main contributor to our carbon footprint. Therefore, the level of investment required to bring an asset up to an acceptable environmental standard will be a consideration as to whether an asset will be retained or considered for disposal.

An energy audit can be undertaken on assets to help determine their energy efficiency and inform the Council on the most appropriate measures to improve energy performance. The nature of investment could include, but is not limited to, schemes to introduce solar panels, improve insulation, install LED lighting and heat pumps to replace fossil fuel boilers. Assets will be considered on a case by case basis, and the viability, sustainability, cost and benefit will inform decision making.

What Governance structure supports the Council disposing, leasing or transferring its assets?

The Council’s Constitution has sets out how it operates, how its decisions are made, and how it ensures these are efficient and transparent to local people.

More information about the Council’s Constitution is available here

Within the Constitution reference is made to the Council’s Scheme of Delegation and Finance & Procedure Rules. These govern who our decision makers are on all property transactions.

With specific regard to the disposal of surplus operational assets, and community asset transfers our internal processes require consultation with the Cabinet Members and relevant Ward Councillors to ensure transparency of decision making.

How do we ensure that our Property transactions are undertaken in accordance with best practice?

All Council staff are required to adhere to the Council’s Officer Code of Conduct.

In addition, the Council’s Property Services team comprises Chartered Surveyors, who are required to operate in accordance with their own governing body’s Rules of Conduct provided by the Royal Institution of Chartered Surveyors (RICS).

What is the Council’s Climate Agenda?

Cheshire West and Chester Council unanimously declared, on 21 May 2019, that the borough is in a Climate Emergency. Since then, the Council have been working and engaging with a range of partners, climate experts, community groups and businesses to understand the challenges and opportunities the Climate Emergency presents for our area.

More information about the Council’s response to the climate emergency is available here.

What is the Council’s Poverty Agenda?

In October 2020, elected members of the Council voted to declare a poverty emergency for the borough. This declaration sets out the importance of tackling poverty alongside climate change as part of a fairer, greener recovery from the pandemic.

More information about the Council’s response to the poverty emergency is available here.

This section provides further information to support you in your response to the Property Assets Strategy consultation.

Where we have cross referenced wider Council priorities such at the Climate and Poverty Agenda we wanted to provide the appropriate links to allow you access to greater detail.

What kinds of assets does the Council own and where are they?

The Council own a wide range of assets such as:

  • Industrial units and offices that are rented out to local businesses to support the local economy
  • Offices and other premises (such as Children’s Centres) that the Council uses to run services from
  • Depots for highways and recycling operations
  • Community centres
  • Country parks
  • Museums
  • Public toilets
  • Farms
  • Social housing
  • Public open spaces.

Our property assets can be land or buildings and they are spread out across Cheshire West and Chester

What assets is the consultation referring to?

While the Asset Strategy is relevant to the management of whole of the Council’s property portfolio the consultation has focussed on the operational and community estates.

What is a Surplus Asset and how is that determined by the Council?

An asset will be considered surplus if we can’t establish a long term use for it and it is poorly performing (for example, it is not energy efficient, requires significant ongoing maintenance to keep it viable, is beyond its economic life, or has high vacancy rates).

An asset is determined as surplus if one or more of the following criteria applies:

  • There is no longer any requirement from the council for the delivery of council services (including for economic growth or regeneration),
  • The asset will not assist the Council in undertaking its statutory (legal) requirements.
  • It is no longer financially or economically viable to retain the assetThere is no known community requirement for the asset.

Will communities be able to have their say on which assets are disposed of before they are sold or ownership is transferred?

Ward Councillors will be consulted, and communities will be made aware when an operational or community asset is identified as being surplus to Council requirements.

What methods of disposing of property would the Council use?

The methods of disposal available to the Council are the same as those afforded within the wider property market, and the Council does have the discretion within its powers to determine and use an appropriate method of sale.

The method of disposal will be dictated by the nature of the asset and the results of any pre-disposal investigations. The Council’s Head of Property will recommend the most appropriate method of disposal and this will be set out clearly in any decisions. Where appropriate, assets to be disposed of will be advertised on the Council’s website.

In making the decision on which method of disposal is most appropriate, the Head of Property will consider the merits of the four main methods of disposing of land and property interests:

  • Private Treaty - a sale of land negotiated with one or a small number of individuals. The land may or may not have been marketed as available for sale. A binding legal agreement is created on ‘exchange of contracts’ or signing of a development agreement between the authority and the purchaser or lessee.
  • Public Auction - a sale of land by open auction available to anyone. The sale will be publicly advertised in advance. A binding legal agreement is created upon the acceptance of a bid by the auctioneer.
  • Formal Tender - a sale of land by means of a process of a public advert and closed tenders submitted by a given date in accordance with a strict procedure. A binding legal agreement is created upon the acceptance of one tender by the Council.
  • Informal Tender (Sealed offers) - a sale of land after a public advert requesting informal offers or bids that meet a given specification or set of objectives. The Council may then negotiate further or more detailed terms with one or more individuals submitting the most advantageous bid or bids. A binding legal agreement is not created until the ‘exchange of contracts’ or signature of a development agreement between the authority and the successful bidder.

*In certain circumstances, it may be appropriate and advantageous for the Council to dispose of its interest to a special purchaser e.g., where additional value could be achieved through a disposal to an adjoining landholder (marriage value) or where other benefits can only be brought by treating with a particular buyer. The method of this sale may be Private Treaty or Development Partnership and will always be conducted with the benefit of independent property, valuation and legal advice.

What does the Council do with the money generated from the sale of assets?

There are statutory restrictions on how Councils can use capital receipts – the money generated from the sale of assets. These receipts can only be used to support capital expenditure (investment in assets) or to repay debt. They cannot be used to support the Council’s normal operating costs.

In Cheshire West and Chester, we use the money generated to support a borough wide capital programme of expenditure that is aligned to the Council Plan. Details of specific projects are published annually as part of the budget.

More information about the Council Plan is available here

More information about the Council Budget is available here

More information on the Capital Programme for this year is available here

What is a Community Asset Transfer?

A community asset transfer is the lease of building or land from the Council to an organisation for community benefit. It is defined as follows:

“the leasehold transfer of a Cheshire West and Chester asset to an organisation with a social purpose who plan to use the asset for the benefit to the local community”.

What is the process for a community asset transfer?

There are three main stages to a community asset transfer.

  1. Expression of Interest. The Council is receptive to receiving expressions of interest from interested parties regarding how a Council owned asset could benefit the community. The Council shall consider the merits of the application against the objectives of its Council Plan. It is important to note that the council is only able to transfer land and assets to a legally constituted entity (eg a company or trust).
  2. Business Modelling. This will vary between proposals but shall ensure that the organisations are capable of entering into a lease of the property and has the governance and capacity to take on the responsibility of the asset and the services they are seeking to deliver. Financial viability and sustainability of the proposal will have to be developed to reflect the existing condition of the asset and the ongoing maintenance, investment and outgoings (the asset’s liabilities).
  3. Approval. Subject to a party demonstrating they have a successful business model, approval to the transfer shall be sought under the Council’s governance structure and a transfer by way of lease of the asset progressed. In addition to the Lease, a Community Benefit Agreement shall be entered into to cover aspects of monitoring and reporting on social value outcomes.

How does the Council decide which assets to invest in from a climate perspective, and which are not capable of being improved?

The Council’s resources are limited and a significant aim of the Council Plan is to be carbon neutral by 2030. Council assets are main contributor to our carbon footprint. Therefore, the level of investment required to bring an asset up to an acceptable environmental standard will be a consideration as to whether an asset will be retained or considered for disposal.

An energy audit can be undertaken on assets to help determine their energy efficiency and inform the Council on the most appropriate measures to improve energy performance. The nature of investment could include, but is not limited to, schemes to introduce solar panels, improve insulation, install LED lighting and heat pumps to replace fossil fuel boilers. Assets will be considered on a case by case basis, and the viability, sustainability, cost and benefit will inform decision making.

What Governance structure supports the Council disposing, leasing or transferring its assets?

The Council’s Constitution has sets out how it operates, how its decisions are made, and how it ensures these are efficient and transparent to local people.

More information about the Council’s Constitution is available here

Within the Constitution reference is made to the Council’s Scheme of Delegation and Finance & Procedure Rules. These govern who our decision makers are on all property transactions.

With specific regard to the disposal of surplus operational assets, and community asset transfers our internal processes require consultation with the Cabinet Members and relevant Ward Councillors to ensure transparency of decision making.

How do we ensure that our Property transactions are undertaken in accordance with best practice?

All Council staff are required to adhere to the Council’s Officer Code of Conduct.

In addition, the Council’s Property Services team comprises Chartered Surveyors, who are required to operate in accordance with their own governing body’s Rules of Conduct provided by the Royal Institution of Chartered Surveyors (RICS).

What is the Council’s Climate Agenda?

Cheshire West and Chester Council unanimously declared, on 21 May 2019, that the borough is in a Climate Emergency. Since then, the Council have been working and engaging with a range of partners, climate experts, community groups and businesses to understand the challenges and opportunities the Climate Emergency presents for our area.

More information about the Council’s response to the climate emergency is available here.

What is the Council’s Poverty Agenda?

In October 2020, elected members of the Council voted to declare a poverty emergency for the borough. This declaration sets out the importance of tackling poverty alongside climate change as part of a fairer, greener recovery from the pandemic.

More information about the Council’s response to the poverty emergency is available here.