DISPOSAL BY LONG LEASE OF TREASURY ANNEXE BUILDING, BIRKENHEAD
Decision Maker: Director of Regeneration and Place
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
The Treasury Annexe Building is currently occupied on a short term lease by Make Hamilton Square Ltd (‘Make’) as a centre for makers and creatives. Make intends to relocate to alternative premises in Argyle Street, Birkenhead on or before the expiration of the lease in July 2024. At that point, the Annexe Building will become vacant and surplus to the Council’s requirements.
In September 2022, Wirral Borough Council secured approval and funding from the Department for Levelling Up, Housing and Communities’ (DLUHC) Towns Fund for a number of projects within the Birkenhead Town Deal programme. The Joy Project is one such project, which has identified the Treasury Annexe Building as a suitable location for its activities.
It is therefore proposed that the Council makes a disposal of the property to the Open Door Charity on a long lease in return for a premium of £270,000 plus VAT.
The Wirral Plan 2021 - 2026 covers the following five themes:
- Safe & Pleasant Communities
- Brighter Futures
- Active and Healthy Lives
- Sustainable Environment
- Inclusive Economy
The disposal of this asset and the use of Town Deal funds, together with the wider regeneration programme, delivers against all of the above themes.
The transaction has implications for the Birkenhead and Tranmere ward.
This is not a key decision.
The Director of Regeneration and Place has agreed to the granting of a long lease to Open Door Charity (Charity No. 1189664) for a term expiring in December 2119 for a premium of £270,000 plus VAT, at a peppercorn annual rent, and otherwise in accordance with the Heads of Terms set out at Appendix 1 of this report.
Reasons for the decision:
Once vacated by Make Hamilton Square Limited, the Treasury Annexe building will become vacant and surplus to Council requirements. A disposal by way of a lease c.99 years will divest the Council of a surplus asset for the long-term and generate a capital receipt.
The disposal by way of a long lease of the property to Open Door Charity will enable the delivery of the Wellbeing & Opportunity Centre (the ‘Joy Project’) which is an approved project of the Town Deal programme.
Alternative options considered:
The Council has no requirement to use the building itself, so a disposal is the most appropriate route. The Council could dispose of the property on the open market, but this would not achieve the outputs proposed as part of the Town Deal.
Publication date: 12/01/2023
Date of decision: 11/01/2023