URL: https://reigate-banstead.moderngov.co.uk/ieDecisionDetails.aspx?ID=1247

Decision Maker: Head of Property Services

Outcome: Recommendations Approved

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. 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 annex, 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. The following parcels of land were identified as being partly held and maintained as public open space: •Bay Close Recreation Ground, Bay Close, Horley •Court Lodge Field (including Riverside Walk), Thornton Cl, Horley •Yattendon Recreation Ground, Yattendon Road, Horley •Merstham stadium and pitch Weldon Way, Merstham In accordance with Section 123(2A) of the Local Government Act 1972 regarding the intended disposal of open space land Public Notices of these intended disposals were published. The Notices were advertised in the Surrey Mirror for two consecutive weeks, they were displayed at each of the sites, and information was made available on the Council’s website. The Public Notices were made available from 21 May 2026 with a request that any objections or representations with respect to the proposed disposals must be made in writing to the Council by e-mail or letter by 5:00 PM on 18 June 2026. No responses were received. The Council has determined that it is appropriate to dispose of assets to Horley Town Council by freehold. The Community Asset Transfer policy states that: “freeholder transfers will be considered on a case-by-case basis where there are objective reasons why a lease is not the most appropriate form of transfer. As a minimum for consideration of freehold organisations must have a robust structure, proven track record, and experience of managing legal and financial responsibilities. Providing evidence it can handle liabilities like insurance, maintenance, and compliance. The Council must also be certain it does not need to retain use of the building for any specific purpose or any other restrictions such as shared use are in place. “ The Council has taken the view that a freehold transfer to Horley Town Council gives long term certainty and clarity of ownership to these three open spaces and is directly in support of the aims of the Programme by enabling strong local community ownership. Horley Town Council have a proven track record of owning and managing green spaces in the area of Horley including the associated legal and financial responsibilities. As a town council they must follow legislation that defines their powers and responsibilities, requiring them to act lawfully, manage public funds properly, make decisions transparently, and uphold ethical standards, while remaining accountable through audit and public scrutiny. Recent surveys completed by Horley Town Council have also indicated support from residents to ownership by Horley Town Council of local assets and resident’s appetite for their further development. In particular this engagement work has identified the need for the modernisation of Innes Pavillion where a grant is being offered. The Council recognises that these assets offer limited opportunities for significant income generation and incur ongoing costs to ensure they are maintained safely and managed in the best interests of the community who use them. It is therefore proposed to transfer to Horley Town Council a commuted sum of £249,434 to support the first five years of running costs. This is based on the Council’s calculation of what it itself would spend to maintain the assets, including £80,000 for the refurbishment of the playground on Yattendon Recreation Ground which is anticipated to take place within the next 3 – 4 years. A commuted sum agreement will set out the expected use of the funds for the specified assets. Horley Town Council has confirmed to the Council that it will be able to fund the running costs of the assets for the long term. It has created a dedicated Earmarked Fund for these assets and has increased its precept, allocating funds in the 2026/27 budget to the Earmarked Fund to support the future financial requirements of maintaining and operating assets once the commuted sum period ends, with further annual contributions planned throughout the commuted sum period. This phased approach allows the precept to increase gradually so that, by the end of the commuted sum period, it is sufficient to cover ongoing running costs. Alongside this, the Earmarked Fund will provide additional capacity to manage planned maintenance and any unforeseen costs. Horley Town Council considered the above matters at its meeting on 16 June 2026 and agreed that “the opportunity to secure the freehold transfers of popular parks and open spaces at Bay Close, Yattendon Recreation Ground and Riverside Walk encompassing Court Lodge Fields, would represent a significant enhancement to the Town Council's already extensive portfolio of community assets and public services. Local ownership would provide greater control over future investment, maintenance standards and long-term stewardship, helping to safeguard these important community assets for future generations. The asset transfers would also enable responsive decision-making and stronger community engagement, ensuring that residents' views directly influence the management and development of local green spaces, outdoor sports and recreation provision, and play areas. The Town Council further welcomes the prospect through the Asset Transfer Scheme and associated Grant Funding programme to invest in and enhance a valued community asset at Court Lodge, ensuring its long-term sustainability and continued benefit for local residents as a well utilised sports pavilion. Overall, the acquisition of these assets would strengthen the Town Council's ability to deliver effective, locally focused services while providing lasting benefits to residents through enhanced recreational opportunities, environmental improvements and increased community wellbeing. As an established local authority, delivering high quality grounds maintenance and open space management, the Town Council is well placed to ensure these valued recreational areas are maintained to a high standard, reflecting local priorities and community needs. Following deliberations from Members, the following Resolutions were made: 1.The Freehold Title Transfer of the agreed assets, namely Yattendon Recreation Ground and Playground; Bay Close; and Riverside Walk, Horley from Reigate & Banstead Borough Council to Horley Town Council, BE APPROVED, subject to final confirmation by the transferring authority. 2.The Freehold Title Transfer of Court Lodge Fields, Horley incorporating the former Scout Hut compound, from Reigate & Banstead Borough Council to Horley Town Council, BE APPROVED, subject to final confirmation by the transferring authority. 3.The acceptance of a commuted sum of £249,434k from Reigate & Banstead Borough Council to Horley Town Council, as a lump sum payment on completion of the asset transfers, including £88.5k capital costs for a replacement playground at Yattendon Recreation Ground, Horley and ancillary costs, BE APPROVED, subject to final confirmation by the transferring authority. 4.The acceptance of a grant of £475k from Reigate and Banstead Borough Council to Horley Town Council towards refurbishment of the Innes Pavilion, Court Lodge Fields, Horley, BE APPROVED, subject to final confirmation by the transferring authority. 5.The agreement for a part-funding contribution of £25k to be covered from the Town Council’s Neighbourhood Community Infrastructure Levy (CIL) fund towards internal refurbishment of the Innes Pavilion, Court Lodge Fields, Horley, BE APPROVED. “ To note that the above text is taken from the unconfirmed minutes of Horley Town Council meeting 16 June 2026. Further assets detailed in this decision paperwork are being transferred via a lease which ensures the asset residual freehold 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 to the lessee. Conditions within the lease will require the lessee to manage, maintain and insure the asset 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 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. To note that the Council’s decision notice on the Community Asset Transfer and Support Programme of 20 May 2026 stated that conditional offers of grants for legal costs or similar professional fees to allow them to commence work on the potential for transfer were offered to: •Merstham Football Club - £5,000 •Horley Town Council - £10,000 An update on the programme was provided to the Council’s Overview and Scrutiny Committee in June 2026. Declaration of Interest At the CAAG meetings Members recused themselves when the following business cases, that are referred to above, were discussed: Cllr Baker, Cllr Green and Cllr Biggs identified themselves as having links to Horley Town Council and recused themselves from discussions relating to business cases from Horley Town Council. Please refer to the Code of Conduct for guidance on interests.

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Date of Decision: June 24, 2026