Item 11 - Sale of property at 26-30 Glasgow Rd Clydebank
West Dunbartonshire Council · 24 May 2023
Back to Infrastructure, Regeneration & Economic Development Committee — 24 May 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Supply, Distribution and Property Infrastructure Regeneration and Economic Development Committee: 24 May 2023 ___________________________________________________________________ Subject : Sale of Property at 26-30 Glasgow Road, Clydebank G81 1SE 1. Purpose 1.1 The purpose of this report is to seek the approval of the Committee that the Council enter into a contract for the disposal of the property at 26-30 Glasgow Road, Clydebank to Idrigil Limited 2. Recommendations 2.1 It is recommended that the Committee: (i) Approve the disposal of the site to Idrigil Limited for the sum of £120,000. (ii) Authorise the Chief Officer, Supply, Property and Distribution to conclude negotiations. (iii) Authorise the Chief Officer, Regulatory and Regeneration to conclude the transaction on such conditions as considered appropriate. 3. Background 3.1 This commercial property is wholly owned by West Dunbartonshire Council and has been leased to the current tenant Idrigil Limited. The lease was last extended in 2017 for a further three years and has been running on a tacit relocation, i.e. year to year, basis since 2020. 3.2 The agreed rent for the property is £19,000 per annum although this not currently being levied due to the disruption of works around the Queens Quay area. Prior to the Covid-19 pandemic, the property had traded as the ‘Lucky Break’ licensed snooker hall. The property is currently closed and not trading. 3.3. The subjects consist of a two storey, end terrace property of brick construction. In terms of layout, at the ground floor, the property extends to a function and bar area at the front, with a sizable hall at the rear currently used as the snooker hall. ITEM 11
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3.4 Generally, the property is in reasonable condition at ground level although requires some level of repair and maintenance. On the upper floor, the condition is very poor. This level is currently used as a store and is in a shell state with no floor or wall finishes. The upper floor requires a significant level of investment in order to bring it up to a standard consistent with the ground floor. 3.5 The surrounding area has seen significant improvement of late as part of the Queens Quay redevelopment at Clydebank Waterfront. This includes the new Health Centre immediately to the rear of the property and the new multi-storey residential scheme immediately to the east. 3.6 In order to facilitate construction of the new Health Centre, the toilet block located at the rear of the property required to be demolished. The Council undertook to replace and install new toilets in the property, at the Council’s expense, in due course. This has not been undertaken as yet and if this disposal proceeds this will not be carried out. 4. Main Issues 4.1 The property is not required by the Council for any operational purposes. 4.2 Asset Management have been approached by the current tenant, Idrigil Limited, for them to purchase the property from the Council. This would be in accordance with Council’s Disposal Strategy. 4.3 A valuation of the property by the District Valuer Office reported a Market Value of £100,000 as at 30 August 2022. 4.4 Agreement has been reached, in principle, with Idrigil Limited for a sale of the property to them at a price of £120,000 in its existing condition subject to Committee Approval. 5. People Implications 5.1 There are no significant people implications other than the resources required by Legal Services to negotiate missives and conclude the transaction. 6. Financial and Procurement Implications 6.1 The Council will benefit from a capital receipt. 6.2 The Council will no longer have to incur resources in managing the property. 6.3 The Council no longer have to incur the cost of reinstating the WC facilities which were removed nor organise and contribute to a refurbishment of the property.
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6.4 There are no procurement implications arising from this report. 7. Risk Analysis 7.1 The disposal is subject to legal due diligence. 7.2 As with any transaction of this nature there is a risk of the sale not proceeding due to issues which arise during the due diligence process and the property may require to be retained on a leasehold basis or put on the open market. 8. Environmental Sustainability 8.1 An up to date Asbestos Report will be obtained for the property and passed to the prospective purchaser. We understand that Idrigil Limited intend to reopen and use the property for Snooker Hall and ancillary uses. 9. Equalities Impact Assessment (EIA) 9.1 An Equality Impact Assessment is not applicable for the purpose of this report. 10. Consultation 10.1 Consultations have been undertaken with Finance and Regulatory Services, Planning and Road Services. 11. Strategic Assessment 11.1 By agreeing to this proposal the Council will benefit in terms of receiving a capital receipt and removing a potential liability from the Councils books. 11.2 A building which has lain vacant and disused for a number of years will be brought back into serviceable use. Angela Wilson Chief Officer: Supply, Distribution and Property Date: 11 April 2023 Person to Contact: Michelle Lynn, Asset Coordinator. Email: michelle.lynn@west-dunbarton.gov.uk Craig Maxwell, Estates Surveyor. Email: craig.maxwell@west-dunbarton.gov.uk Appendices: None Background Papers: None Wards Affected: Ward 6