COUNCIL ASSETS in Perth and Kinross could be sold for less than market value under special circumstances, councillors have agreed.
If a new use for a building boosted economic development, for example, it was decided that the monetary value achieved would not be the main consideration.
A revised policy for the disposal of land and buildings was agreed by the members of the property sub-committee, who welcomed the new guidance.
“Land and buildings are important assets of the council,” said a joint report by Jim Valentine, executive director (environment) and Ian Innes, head of legal services.
“The council is accountable for its use of these assets, both when they are part of its property portfolio and when they become surplus to requirements.
“As part of this, the council must meet its statutory obligations when it disposes of land and buildings. These obligations generally relate to the requirement to obtain maximum value when they are sold or leased.
“However, it is possible to dispose of property for less than best consideration where this promotes objectives such as economic development or regeneration.
“The way in which the council disposes of its land and buildings should also be clear to anyone who wishes to acquire property, or an interest in property, from the council.
“There is therefore a need for a policy on the disposal of land or buildings which acknowledges and reconciles these different issues and enables the council to act lawfully and properly.
“Central to the disposal of land and buildings is the accurate valuation of surplus property by suitably qualified chartered surveyors and the council’s estates and commercial investments team has a key role to play in carrying out these valuations or facilitating independent valuations where these are required.”
Mr Innes told the councillors that if they did dispose of an asset for less than market value, they should be acutely aware of how much value the council was giving up.
He said that the council could sell the property for less than it might reasonably be expected to fetch if it contributed to one or more specific purposes economic development or regeneration, health, social wellbeing or environmental wellbeing.
“The disposal of property may give rise to a range of issues and no legal disposal should take place without appropriate professional advice on legal, property and other relevant matters,” Mr Innes said.
Councillor Willie Wilson asked if they could take into account the cost of maintaining a property and staff time when considering disposing of a property at less than the going rate.
He was told by officers that it was a complex issue but that this could certainly be an element of any deliberations regarding the sale of a property or land.
Mr Wilson also requested that the process whereby different council departments decide whether they might have a use for a vacant property be speeded up. He was assured that efforts would be made to reduce the time properties lie empty prior to being reused or sold off.
Councillor Alan Grant, who chaired the meeting, said the new policy and the guidance it contained was something that they had wanted for some time.
He pointed out that it was not always an easy area for them as certain properties were difficult to move on, at any cost.
“Some of the buildings we would like to dispose of you could not give away,” he said.
rburdge@thecourier.co.uk