URL: https://reigate-banstead.moderngov.co.uk/ieDecisionDetails.aspx?ID=1241

Decision Maker: Head of Property Services

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Background Officer Scheme of Delegation: A programme of community asset work was agreed through reports to the Council’s Overview and Scrutiny Committee, Executive Committee and full Council meetings in September 2025. Specifically in relation to the decisions herein, on the 18 September 2025, the Council’s Executive agreed the following delegated authorities: That the Head of Service with responsibility for Property Services, in consultation with the Head of Service with responsibility for Community Partnerships, the Executive Members with responsibility for Assets and Community Development, the Chief Financial Officer, Procurement Manager and the Monitoring Officer, and in accordance with the Council’s Community Asset Transfer Policy and Community Asset Support Scheme, when finalised, be authorised: a. To acquire property assets of community value, or dispose of property assets owned by the Council which are not required for operational purposes, in order to provide community value, and undertake all necessary supporting actions, including approval of acquisition and/or disposal terms and associated agreements, with regard to Key Decision Threshold Limits. …. f. Agree terms for and approve the award of resources to support the operation of community assets by external parties for the provision of community benefits, including in the form of capital or revenue grants, training, and/or advice, and including agreeing requirements for provision of community benefits by external parties. Further information can be found on Council's website: 1 - Agenda for Executive on Thursday 18 September 2025 2 - Community Asset Transfer Policy 3 - Community Asset Support Scheme 4 - Disposal Policy in the addendum to the Executive agenda for 18 September 2025 Consultation In agreeing the above delegations on 18 September 2025 the Executive noted that the Executive Member with responsibility for assets had committed to seek the advice of representatives of the wider membership of the Council through a proposed Community Asset Advisory Group (CAAG) as part of the consultation on decisions. The CAAG is made up of relevant Executive Members i.e. the Executive Members with responsibility for Assets and Community Development and leaders of established political groups. Officers in attendance at the CAAG included the Deputy Chief Executive, the Chief Financial Officer, the Monitoring Officer, the Head of Property Services and the Head of Community Partnerships. The CAAG met on 16, 19 March and 11 May 2026 to consider the business cases submitted through the Community Asset Transfer and Support Programme. The CAAG was supportive of the decisions set out below. It is also noted that all Members at Reigate & Banstead Borough Council have been invited to comment on applications at both the Expression of Interest and Business Case phases of the Community Asset Transfer and Support Programme. Legal (including external legal support) and Finance team consultation has been ongoing throughout the programme via meetings and e-mails. It is noted that the disposals have been considered as property transactions and procurement input was therefore not required. The Procurement Manager has been consulted and has confirmed that as neither the transfers or grants involve the granting of procurable contracts for goods or services, the Procurement Manager has confirmed that further consultation on delegation decisions on specific transfers or grants is not required. Reason for Decision The Community Asset Transfer and Support Programme was established by the Council to enable action to benefit the borough and its residents and support the delivery of the Council’s Corporate Plan objectives regarding towns and villages that serve local communities; supporting leisure, culture and community. In establishing the Programme, the Council was recognising the significant value that community assets provide in supporting the wellbeing, development, and cohesion of the residents and local communities in the borough. The Programme aims to empower local organisations to operate thriving community assets that support the needs of the local community. A key ambition of the programme is to keep council-owned assets in local control for the long term. The Council has completed a rigorous two-stage assessment process in line with the agreed and published Community Asset Transfer and Support Scheme policies, alongside undertaking appropriate due diligence in relation to the financial and legal considerations relating to these decisions. These due diligence checks have included: - Reviewing each organisation’s business case in accordance with the considerations and scoring criteria set out in the Council’s Community Asset Transfer Policy and Community Asset Support Scheme (which are appended to this report). - Business cases were reviewed and scored independently by at least two suitably qualified and experienced officers and moderated to reach an agreed officer score. - Initial eligibility checks at the expression of interest stage, with more onerous eligibility checks undertaken at the business case stage to confirm eligibility. - Carrying out a review of records held by Companies House / the Charities Commission (as applicable). - Asset checks and discussions with relevant service areas to confirm that the assets are not required operationally by the Council. - Asset checks, including checks to confirm whether assets are listed as assets of community value on the Council’s statutory asset register, comprehensive title reviews (aided by external legal advisors), checks to confirm whether assets are designated as statutory allotments, public open space, or common land. - Organisations were scrutinised to determine whether they had an appropriate track record of managing community assets of the type, size, and complexity that they were seeking a transfer of, as well as the requisite experience of managing the legal and financial liabilities associated with such assets. - Organisations were required to supply evidence to demonstrate that they could adequately manage liabilities such as insurance, maintenance and regulatory compliance. - The Council’s balance sheet asset values were scrutinised and tested, with support and advice from external legal advisors. - Advice was sought on the Subsidy Control regime and securing best value pursuant to the duty under s.123 of the Local Government Act 1972. - The Council has taken appropriate steps to determine the unrestricted value of the interests being disposed of, in order to quantify the best consideration reasonably obtainable in the market for each asset. These values are listed in the annexes, for the purposes of (i) demonstrating that it is appropriate for the Council to make the disposal pursuant to the general consent to dispose at an undervalue of not more than £2m (where the disposal would promote or improve the social, economic, or environmental wellbeing of the Council’s area and the people residing there), and (ii) facilitating reporting, where necessary, in accordance with the Subsidy Control regime. However, the Council notes that these ‘unrestricted’ values do not necessarily reflect the income that the Council currently receives for the assets (which are also stated in the annexes), the cost to the Council of disposing of the assets as proposed, nor the restricted value of the assets if they were disposed of purely as community assets (with appropriate safeguards) to the community. These costs / values will all be significantly lower than the unrestricted market value used for valuation purposes. All of the assets for transfer detailed in this decision paperwork are being transferred via a lease which ensures the asset value is retained for the Council whilst enabling community value to be delivered via the organisation during the term of the lease. Where grants are awarded, the assets will benefit from building improvements and environmental upgrades. The nature of these works will undoubtedly increase the valuations of the Councils residual freehold interests. Longer leases open up the opportunity for tenants to seek significant additional grants from other sources that are not generally available to the Council. Further investment and improvements made will again benefit the Council as well as the wider community. The Council will eliminate its existing ongoing liabilities by the transfer of repair and maintenance obligations and its associated resource in managing the assets. Conditions within the lease will state that the asset will be kept in good repair. This will ensure that if the asset is returned to the Council it is not going to be a significant financial liability. The majority of the assets are being leased to existing tenants, many of whom already have leases that fall inside the landlord tenant act. This means that the tenant has a right to renew the lease at the end of the existing term. The remaining are either new leases on vacant assets where the council has a current liability, or are unique in nature and therefore have little capital value on the open market / in non-community use. The grant and lease agreements will contain all the appropriate conditions as set out in the CAT and CASS policies that ensure any assets transferred will be protected for community use and that grants will be spent only for the intended purposes. The Council also intends to issue public notices under Section 123(2A) of the Local Government Act 1972 on the intended disposal of the following assets on the basis that they are partly held and maintained as public open space: - Bay Close Recreation Ground, Horley - Court Lodge Field, Horley - Yattendon Recreation Ground, Horley - Merstham Football Club stadium, pitches and changing rooms, Merstham Decisions on the disposal of these assets will be subject to full consideration of the responses to the public notices and a further Officer Decision will be published accordingly if the transfer of these assets proceeds. Without prejudice to the outcome grants are being offered to Merstham Football Club and Horley Town Council for legal costs or similar professional fees to allow them to commence work on the potential for transfer. An update on the programme and the decisions made to date is planned at the Council’s Overview and Scrutiny Committee in June 2026.

Content:

Date of Decision: May 19, 2026