URL: https://sthelens.moderngov.co.uk/ieDecisionDetails.aspx?ID=185

Decision Maker: Council Leader

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: To explain the necessity for and seek approval to the sale of the Savoy Building, Bridge Street, St. Helens Town Centre as the Council is under contract to complete the sale on 28 March 2025 following the recent successful auction. Approval to the decision would allow the timely completion of this sale whilst generating a significant capital receipt.

Content: To explain the necessity for and seek approval to the sale of the Savoy Building, Bridge Street, St. Helens Town Centre as the Council is under contract to complete the sale on 28 March 2025 following the recent successful auction. Approval to the decision would allow the timely completion of this sale whilst generating a significant capital receipt.   1)             Approve the sale of the Savoy Building, Bridge Street, St Helens Town Centre at the agreed purchase price of £738,000; and   2)             Authorise the Assistant Director, Legal and Democratic Services to prepare and execute the necessary legal documentation pursuant to recommendation (1) above The Savoy Building, Bridge Street, St Helens Town Centre is a freehold commercial property, owned by St Helens Borough Council. The property is split into 3 commercial units over 3 floors, the largest of these units was most recently occupied by the Chinese Buffet where the Council took peaceable repossession of the unit in late 2024, due to an ongoing rental debt position and lack of payment thereof. The two smaller unit have also been used previously as restaurants/cafes but have been vacant for some time.   Current retail/commercial market conditions are challenging, with the rationalisation and downsizing of stores being seen across the country and vacancy rates on high streets continuing to rise. Achieving lettings for these three vacant units in the current and foreseeable market is considered remote and the Council will continue to incur void costs including utility bills, business rates and maintenance. It was therefore officers’ recommendation that the Council dispose of the property to achieve a capital receipt before this is eroded further and to remove the ongoing cost liability.   Accordingly, a Delegated Executed Decision (0092 2024/25) approved the sale of the Savoy Building at auction on 26 February 2025, with a reserve price of £420,000. Pugh & Co were the appointed auctioneers.    The Land & Property Disposal Procedure Rules require that a reserve price is established and confirmed in writing prior to the auction date. The reserve price is the minimum sale price that would be accepted by the Council at auction; however, the decision recognised that this figure could well be exceeded.   The auction resulted in four parties submitting over 85 bids for this property, with bidding commencing at £401,000 and finally achieving a closing bid of £738,000 surpassing all expectations. This final bid has been accepted and contracts signed accordingly.   Whilst the Delegated Executive Decision gave approval to the sale, the final offer is beyond the financial threshold for a delegated decision and would ordinarily be approved at Cabinet.   The contract that has been entered into with the buyer requires that the sale is completed 30 days after acceptance of the offer. Completion is therefore due to take place on 28 March 2025, which will result in a further significant capital receipt.   Accordingly, it is requested that an Urgent Leaders Decision be approved to fulfil the contractual obligation and to allow for the completion of this sale. The alternative would be to delay completion and submit a report to Cabinet of 23 April 2025 seeking approval to the sale. The Council would, however, effectively be in breach of the contract for sale allowing the buyer to withdraw with the risk of losing this significant offer. In this event, the Council would have to readvertise the property for sale with no guarantee that any subsequent sale would result in an offer of this magnitude.

Date of Decision: March 14, 2025