Minutes:
The following questions were received:
Question 1
Councillor John Matthissen to Councillor Jill Wilshaw
“What is the most recent estimate available for empty homes (all tenures) in the District, and what are comparable figures over the last 5 years?.”
Response from Councillor Wilshaw
“The following statistics are those that we have available, in relation to those properties that have been empty in excess of 6 months:
May 2018: 302, 79 of which empty in excess of 2 years.
May 2017: 314, 79 of which empty in excess of 2 years.
May 2016: 270, 69 of which empty in excess of 2 years.
May 2015: 297, 88 of which empty in excess of 2 years.”
Question 2
Councillor John Matthissen to Councillor David Burn
“When will Council take any effective action to save Fisons Warehouse, bearing in mind that my questions to March Cabinet were either rejected as “a planning matter” or as “submitted too late – written answer to follow” which I cannot trace ever receiving, and that councillor Field’s question at June Council was rejected as not arising from the Leader’s report, while the emphasis of Council media statements has been on securing the perimeter of the site, not ensuring the survival of the magnificent listed building?”
Response from Councillor Burn
“The Council continues to work in both a proactive and robust way with the owners of the Fison’s building. There are two main issues the Council is dealing with, a sustainable planning proposal and the management of a potentially dangerous structure. The Council is currently in detailed discussion with the owners of the site on a revised pre-application proposal. The Council has also been undertaking significant action on an enforcement front. A detailed structural report has been commissioned and received. The Council has taken legal advice and is progressing with actions against the owners of the site to ensure the building’s ongoing safety.”
Question 3
Councillor John Matthissen to Councillor Suzie Morley
“Why has a proposed “Customer” Strategy come forward when:
Response from Councillor Morley
“Thank you for your question Cllr Matthissen. I am not aware of the context or the discussions that took place some 7 years ago in respect of using the term ‘Citizens’. We recognise that indeed, there are lots of different terms that describe those who live and work in Mid Suffolk and additionally who visit our District and who have a variety of different interactions with the Council. We have outlined in the report at paragraph 4.6 the reasons why we are using the term ‘customer’. I note the other comments you have made.”
Councillor John Matthissen to Councillor Nick Gowrley
“What progress has been made in implementing the MSDC Executive Committee decision (5/10/2015) to delegate X/45/15 (Development in Victoria Road) and the subsequent update provided at Council 21 November 2016 in answer to my question to councillor Gowrley? What are the implications for the MSDC-owned land of the adjacent planning permission 2896/15 which is currently being built?
The relevant minutes are appended below:
From confidential minutes of Oct 15 Executive :
1.Resolution One -That the intention to submit a request for change of use of the council owned land marked red on the plan attached to Report X/45/15 be noted.
2. Resolution Two -That the Strategic Director be delegated authority to:
i) Implement the recommendation of the best option available for the Council (following an options appraisal as mentioned in paragraph 1.3 to be exercised within the annual approved budget levels and within the approval levels for the Strategic Director).
ii) Subject to legal advice, to complete the appropriate legal documents to secure the acquisitions and / or disposals required for the implementation of the option appraisal.
Update:
The proposal continues to be developed with Mr Porch the private landowner.
What next:
We will seek specialist advice around release of covenant, values of land and easement; and change of use.”
Response from Councillor Gowrley:
“Further to your question at Council in November 2016 and your most recent question, with regards to the land on Victoria Road, Mr Porch has only recently (24th April 2018) discharged his planning obligations and is currently on site (since the beginning of July 2018) developing the 3 dwellings, as per planning application ref 2896/15.
The Council’s property department will now open further dialogue, in the first instance, with Mr Porch to discuss the opportunity around the site, currently owned by the Council on Victoria Road, as per the agreement at Executive in 2015.”
Question 5
Councillor Rachel Eburne to Councillor Gerard Brewster
“Many high-street retail companies have recently been closing stores and issuing profit warnings. Given that Mid Suffolk District Council’s investments (via CIFCO Capital Limited) are in commercial property, which has retail tenants (such as Marks & Spencer), has the risk of tenant default been assessed? When was this done and how is this information provided to the Council?”
Note that I wanted to ask this at Council and got the following response (see below). This response, however, did not answer my question fully which was “when was this done” (meaning I expected a date to be provided) and “how is this reported to Council” (as in when are all members of the Council, and hence the public, aware of this).”
Response from Councillor Gerard Brewster
“Tenant default is a risk we take when investing in commercial property for rental income. To mitigate this risk we do have limits in place for sector and individual tenant exposure and always look at the quality of the tenant when deciding on investing or re-letting. Jones Lang LaSalle Ltd (Fund Manager and Acquisitions adviser) provides quarterly advice on the economic, investment market and property market outlook upon which the Board, in part, can base its investment decisions. In the most recent financial quarter JLL reported on the national outlook and on individual sector attributes and the strength of each tenant covenant. In the case of Marks and Spencer, the tenant still represents a strong covenant, and the lease has strong unexpired lease term.
The risks of investment in individual asset classes such as high street retail and the effects of ‘clicks not bricks’ are implicit in the strategy and the limits imposed on exposure across the fully invested portfolio. The Board undertakes due diligence on all potential assets as and when they arise in the marketplace. Fund managers JLL independently review the portfolio covenant and provide quarterly reports to the Board. It was always the intention through the setup of the incorporated company structure for it to be the role of the Board and its appointed professional Non-Executive Directors to manage the due diligence and potential risks associated with any acquisition opportunities.
The Chair of CIFCO Capital Ltd reports into the Holding Companies on a quarterly basis to provide them with a comprehensive performance report of the portfolio, and the Holding Companies provide a Performance and Risk report to the Councils on a twice-yearly basis.
Risks are reviewed quarterly in line with the Board’s approved Risk Management Strategy and reported in to the Council’s Corporate Risk Team quarterly or by exception, if required.”
Councillor Eburne then asked a supplementary question. She was still very concerned about retail investments, how this was being reported, and whether there would be full report presented to Council on risk with investments, especially retail. Councillor Brewster explained questions dealing with this matter, around Governance and Risk, were asked at the recent Overview and Scrutiny Committee. These had been fully answered after debate by Members and were accepted by the Committee. CIFCO had taken all possible measures and were doing an excellent professional job. He was sure if Councillor Eburne had been present at the meeting she would have had her concerns fully answered.
Question 6
Councillor Wendy Marchant to Councillor Suzie Morley
“Now that a new library is planned for Needham Market, would it be possible to have public access, face to face, say just one day a week, for ‘customers’ of Mid Suffolk District Council who have any queries”
Response from Councillor Morley
“Thank you for your question Cllr Marchant. Within Mid Suffolk District Council, we do provide a public access point in Stowmarket, where customers can access self-service facilities as well as speak to one of our customer service staff in person. Within our refreshed Customer Strategy, we state that we will explore further opportunities to work in partnership with other organisations to provide self-service facilities including the provision of scanning information. We are already in discussions with Suffolk Libraries to pilot an approach where customers could potentially access self-serve facilities in Library locations. We will consider this provision where we can identify that a customer need exists”.