Cattle Market Sale

Please find attached letter regarding Freedom of Information ref:
000859

Regards,

Charlotte Tomlinson
Interim Legal Secretary - Corporate
For Assistant Chief Executive Office
Legal & Democratic
Herefordshire Council
Blackfriars
Blacfriars Street
Hereford
HR4 9ZR
Tel: 01432 260625
Fax: 01432 260206
Dx: 135296 Hfd 3

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Dear Mr Hamer

Further to our letter of 2nd July, your request for information has now
been considered and the information requested is set out below.

Q1        The value the Council declared for this land as a fixed
asset in its Financial Accounts - for each of the last 3 years

A          The provisional figures for the last 3 years are:

2005/06 - £2,166,025

2006/07 - £539,720

2007/08 - £537,620

These figures are specialist valuations based on the existing use of
property and are provided within the accounts for financial reporting
regulations only and are not to be used for any other purpose.

The change in value between 05/06 and 06/07 reflects a change in the
circumstances of the terms of occupation, the details of which are
commercially confidential.

Q2        What financial and non-financial proceeds will be
received by the Council for the sale of the 250 year lease?

A          In this case the council does not yet know what
proceeds it will receive.  I am advised that there is a MINIMUM figure
that it would consider acceptable but negotiations regarding the proceeds
are talking place at present.

I therefore consider this is information is capable of being exempt
information in that its disclosure would or would be likely to prejudice
the commercial interests of any person including the council.  I consider
this would be the case because if the sum were known it would reduce the
likelihood of the council being able to exceed that sum.  It may also
prejudice the commercial interest of those we are negotiating with if it
were know how much they were prepared to offer for this type of
landholding at this time.

This exception is subject to the public interest test, namely does the
public interest in disclosure outweight that in withholding the
information.  Favouring disclosure I have noted that there is a public
interest in knowing what the local authority is realising for the sale of
a sizable public asset and I note that this is part of a wider
redevelopment scheme is which there is high public interest.

Favouring withholding the information I note that negotiations are not yet
concluded that the figures involved will in due course be made public.  I
also note that disclosure of the council's `hand' would definately
prejudice the figure that would be likely to be realised and that this
would represent a loss to the public funds.  I have therefore concluded
that the public interest lies in withholding this item.  I am advised
that the negotiations are likely to have concluded within 18 months. 
Please therefore take this letter as a refusal notice in respect of that
part of your request. 

Q3        What external Professional advice the Council received in
pursuit of ensuring Residents would get good value for money from the
sale?

A          The Council has employed Montagu Evans, a nationally
highly respected and experienced firm of Chartered Surveyors, to provide
valuation and development advice.

   

Q4        On what basis was 250 year lease decided to be the most
appropriate term?

A          The market for lease length was tested competitively
and the response was for a 250 year lease term.  This lease term gives
the investment market the confidence to provide funding for large
development schemes of this nature.  It also attracts the `blue chip'
pension funds and investment funds.

Q5        Provide a copy of the cost/benefit analysis for the sale
of the ESG land.

A          I understand that no specific cost/benefit analysis
has been commissioned or taken place with regard to this sale. 

If you have any queries or concerns then please contact me, contact
details are given below.

If you are dissatisfied with any aspect of the handling of your request
also please contact me.

Further information is also available from the Information Commissioner
at:

Information Commissioner's Office, Wycliffe House, Water Lane, Wilmslow,
Cheshire, SK9 5AF

Telephone: 01625 545 745    Web Site: [1]www.ico.gov.uk

Yours sincerely

Anthony Sawyer

Senior Archivist - Records Management

Herefordshire Council

Modern Records Unit

Merchant House

Burcott Road

Hereford

HR4 9LW

Tel: 01432 26 0112

Fax: 01432 26 0109

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the individual and not necessarily those of Herefordshire Council. This
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References

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