Disposal of land - legal implications
Whilst we do not normally consult on land sales, we recognised how much of a cherished community asset the Sandye Place Academy site is and committed to consult on the future of the site. Section 123 of the Local Government Act 1972 provides that the we may dispose of its land as it chooses but, except in the case of a short tenancy, the consent of the Secretary of State is required if it is intended to dispose of land at less than the best consideration that can reasonably be obtained.
To ensure we comply with our Section 123 duties, the normal approach would be for the property to be exposed to the open market and appropriate valuation, legal and other advice obtained on the results of that marketing exercise. It is possible to fulfil the Section 123 duty without going to the open market but, regardless of the process, appropriate advice will be taken before any offer is accepted to ensure it represents the best consideration reasonably obtainable as required by Section 123.
We can take into account factors other than monetary consideration in agreeing a disposal of land, this is permissible up to a cash limit of £2M in value where the other factors taken into account contribute to the social, economic, or environmental wellbeing of the area (or part of it). The relevant factors will need to be clearly identified and their impact on any consideration agreed for a disposal quantified in the valuation advice.
The Mansion House would require significant investment, and as a listed building, it would be expensive to operate on a day-to-day basis. Its layout is not to modern standards for ease of use.
Use of the building as a community venue would need to be supported by a viable and deliverable business case, setting out there was sufficient need and demand, and to ensure there were arrangements in place to meet the costs of building works as well as maintaining and operating such a facility. If a viable and deliverable business case was produced by a third party, this would then be considered alongside our current proposal.