Estate Holdings - Operation and Aims
West Devon Borough Council (the Council), has land holdings, commercial buildings and a limited supply of housing. These assets are controlled and operated by the Assets Community of Practice, within the Customer First Team.
The commercial estate, which consists of approximately 300 units around the districts, are generally small (~650 sq ft) and ideal for smaller or start-up companies. The estate is run as a commercial enterprise to generate a revenue stream for the Council. It is the aim of the Council to continue to run the commercial estate and over time, to increase its size, by developing out sites in its ownership, as well as through the purchase of new land when required.
The development programme will form part of the capital programme, which is predicated on robust and compelling business cases. Whenever financially viable, the Council will consider and deploy renewable energy / environmentally friendly solutions and technologies.
Efficient and effective management of the Council's commercial property portfolio is inextricably linked to the Council's response to expected reduction in funding support. It is agreed that increasing revenue from commercial property will help to bridge any future funding gaps. Receipts from all asset disposals will initially be held in reserve, before being used to reinvest in the commercial property estate, thereby providing an ongoing income stream.
The Council's land can be separated broadly into three categories; strategic, non-strategic and public open space.
The public open spaces are generally in towns and are of high amenity value to communities. While they are not sacrosanct, it would only be by exception that the council would look at development opportunities on such sites. The Council is however, happy to engage with community groups, or other appropriate organisations to discuss asset transfers, where this will realise repair and maintenance overhead efficiencies. When determining a transfer, officers would consider whether the organisation requesting a transfer has aims that are clearly aligned with that of the Council in regard to the land's use and ongoing protection. Any such transfer would follow the Council's Asset Transfer Policy.
Non-strategic holdings, such as verges and small parcels of land with limited development potential are subject to the Council's Small Land Sale Policy. The Council intends to dispose of these sites proactively.
Strategic holdings are key to supporting the Council's overarching aim of increasing its revenue income through a programme of disposal, development and acquisition, linked to local planning need. The Council therefore intends to bring forward development on its own land, in line with planning policy and local regeneration needs, in order to provide either capital receipts for reinvestment or an ongoing revenue stream.
This development will not be restricted to any particular type (commercial units, affordable housing etc.) but shall be driven by market demand, local need and as assessment of what will provide best value. Where possible, projects will be favoured which can reduce the Council's expenditure in other areas - for example, reducing the cost of providing short term accommodation. Ultimately, through sound commercial asset management and a programme of reinvestment, the Council seeks to realign its portfolio to meet the objectives set out in section 3.