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Agenda Document Pack - Property Sub-Committee - 18/11/2024

Perth and Kinross Council · 18 November 2024
Back to Property Sub-Committee — 18 November 2024 and its agenda

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Securing the future… • Improving services 
• Enhancing quality of life • Making the best use of public
resources 
Council Building
2 High Street
Perth
PH1 5PH 
11/11/2024 
A hybrid meeting of the Property Sub-Committee will be held in the Council
Chamber on Monday, 18 November 2024 at 13:00. 
If you have any queries please contact Committee Services on (01738) 475000 or
email Committee@pkc.gov.uk. 
THOMAS GLEN
Chief Executive      
Those attending the meeting are requested to ensure that all notifications are
silent on their device and other devices are in silent mode. 
Please note that the meeting will be broadcast online and recorded.  The
recording will be publicly available on the Council’s website following the
meeting. 
Members:
Councillor Grant Laing  (Convener)
Councillor Tom McEwan  (Vice-Convener)
Bailie Chris Ahern
Councillor Peter Barrett
Councillor Andy Chan
Councillor Dave Cuthbert
Councillor Stewart Donaldson 
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Property Sub-Committee 
Monday, 18 November 2024 
AGENDA 
MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY
FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY
ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF
CONDUCT. 
1 WELCOME AND APOLOGIES/SUBSTITUTES   
2 DECLARATIONS OF INTEREST   
3 MINUTE OF MEETING OF THE PROPERTY SUB-COMMITTEE
OF 2 SEPTEMBER 2024 FOR APPROVAL
(copy herewith) 
5 - 6 
4 DISPOSAL BY AUCTION OF 2 AND 2A BALMORAL ROAD,
RATTRAY
Report by Strategic Lead - Economy, Development and Planning
(copy herewith 24/309) 
7 - 16 
IT IS RECOMMENDED THAT THE PUBLIC AND PRESS SHOULD BE EXCLUDED
DURING CONSIDERATION OF THE FOLLOWING ITEM(S) IN ORDER TO AVOID
THE DISCLOSURE OF INFORMATION WHICH IS EXEMPT IN TERMS OF
SCHEDULE 7A TO THE LOCAL GOVERNMENT (SCOTLAND) ACT 1973 
P1  SCHEDULE OF PROPERTY MATTERS APPROVED UNDER
DELEGATED AUTHORITY
• Exempt Reason 6 - Information relating to the financial or
business affairs of any particular person (other than the
authority).
• Exempt Reason 9 - Any terms proposed or to be proposed by
or to the authority in the course of negotiations for a contract for
the acquisition or disposal of property or the supply of goods or
services. 
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PROPERTY SUB-COMMITTEE 
Minute of hybrid meeting of the Property Sub-Committee of the Finance and
Resources Committee held in the Council Chamber, 2 High Street, Perth on Monday
2 September 2024 at 11.00am. 
Present: Councillors G Laing, T McEwan, D Cuthbert, S Donaldson, J Duff
(substituting for Bailie C Ahern) and A Chan. 
In attendance: K Farmer and A Peace (both Economy, Development and Planning),
A Taylor, A Brown, M Pasternak and C MacLeod (all Legal and Governance). 
Apologies for Absence: Bailie C Ahern and Councillor P Barrett. 
Councillor G Laing, Convener, Presiding. 
1. WELCOME AND APOLOGIES 
Councillor G Laing welcomed all present to the meeting and apologies for
absence were noted as above. 
2. DECLARATIONS OF INTEREST 
There were no Declarations of Interest made in terms of the Councillors’ Code
of Conduct. 
3. MINUTE OF MEETING OF PROPERTY SUB-COMMITTEE OF 23 APRIL 
2024 FOR APPROVAL 
The minute of meeting of the Property Sub-Committee of 23 April 2024 was
submitted and approved as a correct record. 
4. DISPOSAL OF RESIDENTIAL PROPERTY AT 1 INVERVAR COTTAGES,
GLENLYON, ABERFELDY, PH15 2NJ 
There was submitted a report by the Strategic Lead – Economy, Development
and Planning (24/240) seeking approval for the disposal of 1 Invervar
Cottages, Glenlyon by sale at auction. 
Resolved:
(i) The sale at auction of 1 Invervar Cottages, Glenlyon for market value in
compliance with the Disposal of Land by Local Authorities (Scotland)
Regulations 2010, be approved. 
(ii) It be agreed that should the property fail to sell at auction, it will be re-
marketed for sale either at auction or on the open market. 
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PERTH AND KINROSS COUNCIL 
Property Sub-Committee 
18 November 2024 
Disposal by Auction of 2 and 2A Balmoral Road, Rattray 
Report by Strategic Lead – Economy, Development & Planning
(Report no. 24/309)   
1. PURPOSE 
1.1 The purpose of this report is to seek approval for the disposal of 2 and 2A
Balmoral Road, Rattray by sale as a single lot at auction.  The value of the
properties exceeds delegated officer authority as detailed in this report. 
2. RECOMMENDATIONS
2.1  It is recommended that the Sub-Committee: 
i) approves the sale at auction as a single lot of 2 and 2A Balmoral
Road, Rattray for Market Value, in compliance with the Disposal of
Land by Local Authorities (Scotland) Regulations 2010; and 
ii) agrees that should the properties fail to sell at auction, they will be
re-marketed for sale either at auction or by private treaty. 
3. STRUCTURE OF REPORT 
3.1 This report is structured over the following sections: 
• Section 4: Background/Main Issues 
• Section 5: Proposals 
• Section 6: Conclusion 
• Appendices 
4. BACKGROUND / MAIN ISSUES 
4.1 In May 2015 Property Sub-Committee considered and approved a disposal
process for the auctioning of surplus properties (Report 15/203 refers).  The
process established that where auction has been identified as the most
appropriate method of disposal, approval is required to proceed with the
disposal at auction of properties valued above the delegated authority limit of
£100,000 specified by the Scheme of Administration. 
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4.2 Auction is an established method of disposal for appropriate surplus
properties which incurs lower fees than conventional marketing and disposal. 
It exposes the opportunity to countywide coverage with a binding deal being
struck when the auctioneer’s gavel falls. Since 2016, the Council has
successfully disposed of more than twenty surplus properties at auction with
the full legal process of disposal being completed within the following 28 days. 
4.3 The property at 2 Balmoral Road is a ground and first floor level former
Council Social Work office consisting of a number of cellular offices and staff
accommodation, extending to 261 sqm or thereby.  The property at 2A
Balmoral Road is a first floor and attic level maisonette, being a former council
flat, with the accommodation comprising three bedrooms and a living room,
kitchen and bathroom. Both the office premises and the maisonette flat form
part of a three-storey corner tenement block located at the junction of
Balmoral Road and Boat Brae/High Street in Rattray.  Within the same block
there is also another flat which is now in private ownership, having previously
been disposed of in circa 2003 by the Council under the Right to Buy
legislation.  The block is not listed or located in a conservation area.  A
location plan is included at Appendix 1. 
4.4 The former Social Work office at 2 Balmoral Road has been vacant since
2018 and was declared surplus by the Council on 15th May 2018. 
4.5 The maisonette flat at 2A Balmoral Road became vacant in 2018 as work
including repairs to the external stair is required to return it to a habitable
standard, the cost of which is prohibitive. 
4.5.1 In June 2023, the Housing Service produced an SBAR (Situation,
Background, Assessment, Recommendation) report to assess what would be
required to refurbish the maisonette flat and also to convert the office at 2
Balmoral Road to provide additional social housing for the Blairgowrie and
Rattray area.  The report noted that there were other development sites in the
vicinity, including social housing for rent by Kingdom Housing Association,
and that the location of the building at the junction of two busy roads made
conversion unattractive.  The Housing Management Team (HMT) made the
decision that the cost of conversion and upgrading works was prohibitive. 
4.5.2 The Housing Service subsequently considered refurbishing the maisonette flat
to accommodate Ukrainian refugees.  However, this was considered
unsuitable and was not progressed. 
4.5.3 In July 2024, the Housing Service produced a further SBAR report to assess
the maisonette flat at 2A Balmoral Road, with the outcome that it was
declared surplus by the Council on 16th October 2024. 
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4.6 The properties at 2 and 2A Balmoral Road are both held on a single title
having been acquired by the Council in 1954.  From a financial perspective
however, the former Social Work office is held on the General Fund while the
maisonette flat is held on the Housing Revenue Account (HRA).  In line with
the Disposal Consultation Framework for Housing Revenue Account assets,
Council tenants in the locality of the properties were consulted in the autumn
of 2023 and no objections were received. 
4.7 The Market Value of the maisonette flat at 2A Balmoral Road has been
assessed at being in the region of £60,000, and the Market Value of the office
premises at 2 Balmoral Road has been assessed at being is in the region of
£50,000. 
4.7.1 The Market Value of the subjects (office and flat together) has been assessed
at being in the region of £110,000.  Since the properties would be auctioned
as a single lot and this figure exceeds delegated approval, approval is
required as per the Scheme of Administration to proceed with the proposed
disposal at auction.   
4.8 There are no current Community Asset Transfer requests or Expressions of
Interest regarding the subjects in terms of the Community Empowerment
(Scotland) Act 2015. 
5.  PROPOSALS 
5.1 Officers propose marketing 2 and 2A Balmoral Road for sale as a single lot at
public auction through Shepherd Commercial Property Auctions, with a
reserve price set at no less than 75% of Market Value, in compliance with the
Disposal of Land by Local Authorities (Scotland) Regulations 2010. 
5.2 Should the properties fail to meet the reserve price, it is proposed to either
remarket them for auction at a later date, or market them for sale by private
treaty with agents appointed as considered appropriate, under terms to the
satisfaction of the Strategic Lead (Economy, Development and Planning) and
the Strategic Lead (Legal and Governance).  Consideration would also be
given to disposing of the office premises and maisonette flat as two separate
properties.  
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5.3 The Council is required to fulfil its statutory duties under Best Value as set out
in Section 1 of the Local Government in Scotland Act 2003 (“the 2003 Act”).
Relevant aspects of this duty include: 
• Making best use of public resources, including land and property.
• Being open and transparent in transactions.
• Ensuring sound financial controls are in place to minimise the risk of fraud
and error.
• Assessing the full financial consequences of decisions at an appropriate
level before major financial decisions are taken or commitments entered
into.
• Demonstrating responsiveness to the needs of communities, citizens,
customers and other stakeholders, where relevant. 
5.4 The disposal of these surplus properties will generate capital receipts for the
General Fund and HRA, with the net capital receipt being apportioned
equitably between the two accounts in accordance with the separately
assessed values of the properties, being 45% to the General Fund and 55%
to the HRA.  Disposal will also remove a revenue liability in terms of ongoing
maintenance and other running costs.  The market would be given the
opportunity to return a vacant site to productive use. 
5.5 The sale of these properties at auction, after a competitive bidding process,
will comply with the Council’s requirement to fulfil its statutory duties in
respect of Best Value and Best Consideration, along with the Council’s
Disposal of Land and Buildings Policy. The properties will be advertised by
the auctioneers as a single lot to expose the opportunity to a wide audience,
and the auction process will take place under the direction of a qualified
Chartered Surveyor to ensure competent governance. 
6.    CONCLUSION 
6.1 The former Social Work office and the maisonette flat at 2 and 2A Balmoral
Road have each been declared surplus by the Council.  The Market Value of
the two properties together exceeds the delegated authority financial limit
specified by the Scheme of Administration and therefore approval is required
to dispose of them at auction.  It is recommended that the Sub-Committee
approves the sale of the properties by auction subject to a reserve price, and
furthermore approves, in the event that the properties fail to sell at auction,
remarketing them at a future date for sale either at auction or by private treaty,
under terms to the satisfaction of the Strategic Lead (Economy, Development
and Planning) and the Strategic Lead (Legal and Governance). 
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Author
Name  Designation Contact Details
Alan Campbell  Estates Surveyor ComCommitteeReports@pkc.gov.uk
01738 475000 
Approved 
Name Designation Date
David Littlejohn  Strategic Lead – Economy,
Development & Planning
6 November 2024 
APPENDICES 
• Appendix 1 – Location Plan 
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ANNEX 
1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND
COMMUNICATION 
Strategic Implications Yes / None
Community Plan / Single Outcome Agreement  None
Corporate Plan  Yes
Resource Implications  
Financial  Yes
Workforce None
Asset Management (land, property, IST) Yes
Assessments  
Equality Impact Assessment None
Strategic Environmental Assessment None
Sustainability (community, economic, environmental) None
Legal and Governance  Yes
Risk None
Consultation 
Internal  Yes
External  None
Communication 
Communications Plan  None 
1. Strategic Implications  
Community Plan/Single Outcome Agreement 
1.1 Not applicable. 
Corporate Plan 
1.2 This report supports the following priority within the PKC Corporate Plan
2022-2027: - 
(i) Developing a resilient, stronger and greener local economy. 
2. Resource Implications 
Financial 
2.1 The disposal of these surplus properties will generate capital receipts for the
General Fund and HRA, with the net capital receipt being apportioned
equitably between the two accounts in accordance with the separately
assessed values of the properties, being 45% to the General Fund and 55%
to the HRA.  Disposal will also remove a revenue liability in terms of ongoing
maintenance and other running costs. 
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Workforce 
2.2 Not applicable. 
Asset Management (land, property, IT) 
2.3 The Strategic Lead (Housing and Communities) has been consulted and
indicated agreement with the proposals. 
3. Assessments 
Equality Impact Assessment 
3.1 Under the Equality Act 2010, the Council is required to eliminate
discrimination, advance equality of opportunity, and foster good relations
between equality groups.  Carrying out Equality Impact Assessments for plans
and policies allows the Council to demonstrate that it is meeting these duties.   
The information contained in this report has been considered under the
Corporate Equalities Impact Assessment process (EqIA) with the following
outcome: 
(i) Assessed as not relevant for the purposes of EqIA 
Strategic Environmental Assessment 
3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the
Council to identify and assess the environmental consequences of its
proposals. 
No further action is required as it does not qualify as a PPS as defined by the
Act, and is therefore exempt. 
Sustainability 
3.3 Under the provisions of the Local Government in Scotland Act 2003 the
Council has to discharge its duties in a way which contributes to the
achievement of sustainable development.   Under the Climate Change
(Scotland) Act 2009 the Council also has a duty relating to climate change
and, in exercising its functions must act: 
• in the way best calculated to delivery of the Act’s emissions reduction
targets;
• in the way best calculated to deliver any statutory adaptation
programmes; and
• in a way that it considers most sustainable. 
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Legal and Governance 
3.4 The Strategic Lead (Legal and Governance) has been consulted on the
issues contained within this report. 
3.5 The Market Value of the property to be auctioned exceeds the delegated
authority financial limits specified in the Scheme of Administration and
therefore Property Sub-Committee approval is required for this disposal. 
Risk 
3.6 There are no direct risk implications arising from this report other than those
reported within the body of the report. 
4. Consultation 
Internal 
4.1 The following officers have been consulted in the preparation of this report: 
• Strategic Lead (Legal and Governance)
• Strategic Lead (Housing and Communities)
• Strategic Lead (Economy, Development and Planning)
• Chief Finance Officer 
External 
4.2 Not applicable. 
5. Communication 
5.1 Not applicable. 
2. BACKGROUND PAPERS 
2.1 Report 15/203. 
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© Crown copyright [and database rights] 2024 OS AC0000805756. You are permitted to use this data solely to enable you to respond to, or interact with, the organisation that provided you with the data. You are not permitted to copy, sub-licence, distribute or sell any of this data to third parties in any form.
Scale:
1:2,047
Location Plan: 2 + 2a Balmoral Road, RattrayTitle:
Plan produced by Alan Campbell, Estates SurveyorContact:
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