Decision:
Council AGREED:
1. The investment of up to the sum referred to in the exempt report from the Interim Director of Finance, as amended by the exempt supplement and revised Appendix A circulated to all Members, comprising property acquisition costs and refurbishment and letting costs in accordance with the approved Investment Strategy, to acquire the property at Cambridge Science Park and to refurbish the building as a multi-let office investment.
2. The re-profiling of the Investment Strategy capital allocations to bring forward sufficient funds to enable the property at 1. above to be acquired in 2019/2020 and refurbishment to be commenced thereafter.
3. The use of the General Reserve, if required, for the potential revenue cost impacts of the acquisition, prior to the realisation and inclusion of the net additional income from the portfolio investment in the revenue budget.
Minutes:
The Council considered an exempt report seeking its approval for a commercial
property investment that would enable the Council to pursue its Business Plan
objective of supporting businesses, as well as delivering positive financial
returns for the Council.
A supplement to the report, which contained exempt information as defined in
paragraph 3 of Part I of Schedule 12A of the Local Government Act 1972, had been
circulated to all Councillors and drew attention to a change in the proposed VAT treatment of the acquisition.
In moving the recommendation in the report, Councillor John Williams, the Lead Cabinet Member for Finance, provided further background and context regarding the revised VAT position with the purchase, as the building was not tenanted, and, in particular, drew attention to the consequential variation in the purchase price and other associated costs, as set out in the supplement to the report.
Councillor Bridget Smith seconded the motion.
During discussion, some Members expressed reservations about the investment. Councillor Nick Wright moved and Councillor Grenville Chamberlain seconded the following amendment:
“That the decision be deferred until a tenant is found”.
Upon being put to the vote, votes were cast as follows on the amendment:
In favour (13):
Councillors Ruth Betson, Dr. Shrobona Bhattacharya, Tom Bygott, Grenville Chamberlain, Graham Cone, Dr. Douglas de Lacey, Sue Ellington, Mark Howell, Deborah Roberts, Peter Topping, Bunty Waters, Heather Williams and Nick Wright.
Against (23):
Councillors Henry Batchelor, John Batchelor, Anna Bradnam, Dr. Martin Cahn, Dr. Claire Daunton, Clare Delderfield, Neil Gough, Jose Hales, Bill Handley, Geoff Harvey, Dr Tumi Hawkins, Pippa Heylings, Steve Hunt, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Nick Sample, Bridget Smith, Hazel Smith, Dr. Ian Sollom, John Williams and Eileen Wilson.
Abstain (0):
The Chairman declared the amendment to be LOST.
Upon the original motion being put to the vote, votes were cast as follows:
In favour (24):
Councillors Henry Batchelor, John Batchelor, Anna Bradnam, Dr. Martin Cahn, Dr. Claire Daunton, Dr. Douglas de Lacey, Clare Delderfield, Neil Gough, Jose Hales, Bill Handley, Geoff Harvey, Dr. Tumi Hawkins, Pippa Heylings, Steve Hunt, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Nick Sample, Bridget Smith, Hazel Smith, Dr. Ian Sollom, John Williams and Eileen Wilson.
Against (12):
Councillors Ruth Betson, Dr. Shrobona Bhattacharya, Tom Bygott, Grenville Chamberlain, Graham Cone, Sue Ellington, Mark Howell, Deborah Roberts, Peter Topping, Bunty Waters, Heather Williams and Nick Wright.
Abstain (0):
Council
RESOLVED:
To agree:
1. The investment of up to the sum referred to in the exempt report from the Interim Director of Finance, as amended by the exempt supplement and revised Appendix A circulated to all Members, comprising property acquisition costs and refurbishment and letting costs in accordance with the approved Investment Strategy, to acquire the property at Cambridge Science Park and to refurbish the building as a multi-let office investment.
2. The re-profiling of the Investment Strategy capital allocations to bring forward sufficient funds to enable the property at 1. above to be acquired in 2019/2020 and refurbishment to be commenced thereafter.
3. The use of the General Reserve, if required, for the potential revenue cost impacts of the acquisition, prior to the realisation and inclusion of the net additional income from the portfolio investment in the revenue budget.