Agenda Item No
The Vale of Glamorgan Council
Trust Committee: 28th January 2013
Report of the Managing Director
Sale of the former Cowbridge School Lower School Site, Townmill Road
Purpose of the Report
1. To formally advise Trust of the costs that have been set against the proceeds from the sale of the former Cowbridge Lower School site and to provide an analysis of such costs.
1. That Committee note the costs that have been set against the proceeds of sale.
2. That Committee note the monies that are currently available for reinvestment
Reasons for the Recommendations
1. To update Committee.
2. To be aware of the balance available for reinvestment.
2. At the meeting of the Trust Committee on 27th November 2012 it was resolved that a report should be brought to the next meeting of the Committee providing a breakdown of the costs of sale.
3. It was also resolved that officers investigate whether all costs associated with the sale of the Former Cowbridge Lower Comprehensive School could be recovered from the proceeds of sale.
4. Subsequent to the meeting a summary of costs of sale was circulated to Trustees for their consideration, this information is shown in Appendix A.
5. Since the Committee meeting officers have received a further query regarding the costs of sale summary that was circulated to members following the meeting. Information contained in the response is included in Appendix A to this report.
Relevant Issues and Options
6. The former Cowbridge Lower School site was sold to Taylor Wimpey for £2,512,768.
7. Following negotiations made on behalf of Trustees by Rawlins and Madley with Taylor Wimpey it was agreed that £75,000 would be held on retention in relation to abnormal ground conditions at the lower school site. The sum is to be held subject to the buyer obtaining within 6 months of completion a ground inspection report carried out by an independent consultant indicating whether the ground conditions are suitable for the development Taylor Wimpey propose. If they are not suitable then the retention sum will be permanently retained. Otherwise the retention sum will be reduced to cover any works recommended in the consultants report which the buyer would need to carry out to make the ground conditions suitable and any balance remaining returned to the Cowbridge Comprehensive Trust.
8. Also received is £20.22 interest which will not be treated as proceeds of sale but as unrestricted income received in year.
9. The proceeds of sale as set out in Appendix A are £2,437,768.
10. Only those costs that are attributable to the sale can be set against the proceeds. Details of this expenditure is set out at Appendix A. These total sum £35,010.25 and were incurred over the Financial years 2010/11, 2011/12 and 2012/13.
11. The Vale of Glamorgan Council agreed to initially pay these costs as the Trust did not have sufficient cash flow to fund them; the Council being reimbursed by the Trust once the proceeds from the sale of the Lower School Site had been received.
12. Following deduction of these costs the proceeds of sale available for reinvestment by the Trust are £2,402,757.75.
13. A further report will be brought to Committee providing information as to the amount that could be returned to the Trust in respect of the retention of £75,000 (see para 7 above).
Resource Implications (Financial and Employment)
14. The sale price of the former lower school site was £2,512,768 of which £75,000 has been held on retention as discussed above. Following deduction of £35,010.25 costs of sale as set out in Appendix A, the remaining proceeds of sale £2,402,757.75 (£2,512,768-£75,000-£35,010.25) is available for reinvestment by the Trust.
Sustainability and Climate Change implications
15. There are no sustainability and climate change implications
Legal Implications (to Include Human Rights Implications)
16. The Trust is required to abide by the conditions contained in the Charities Act 2011.
Crime and Disorder Implications
17. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
18. There are no equal opportunities implications.
19. The sole concern of the Trustees is to act in the best interests of the Trust.
Policy Framework and Budget
20. Not applicable.
Consultation (including Ward Member Consultation)
Relevant Scrutiny Committee
Gemma Jones, Accountant, Resources
Head of Legal Services.