Decision details

Cabinet were asked to:

1.  Give the Property Director authority to dispose of the property via freehold transfer to the owners of Ramsgate FC at £265,000 with restriction on the use of the land, limiting it to uses as a football club and associated purposes only. Should the owners wish to sell or re-develop the land at a future date The Council will seek an overage provision of 50% on any uplift in value following a change of use. 

The Council  commissioned an independent valuation of the premises to assess what the current market value would be. The valuer provided a market value of £250,000.

We are aware that parcels of land like the subject property rarely come to the market,

and especially on an unconditional basis. The property is located in a residential area of Ramsgate and therefore we believe any prudent vendor would not sell the land “as is” at the above prices of say £250,000 without protecting their position for any possible uplift in value. It is our belief that a prudent vendor would include one or both of either:

·  An overage provision on any uplift in value following a change of use, or

·  A restriction on the use of the land limiting it to uses as a football club and

associated purposes only

Members agreed that if the property was sold immediately after sale for redevelopment this would not send a good message about how TDC valued the importance of The Football club being on it’s present site for 70 plus years and providing a service to the community, encouraging children to play sport.

Cabinet agreed recommendation 1:

The preferred and recommended options is to dispose of the property via freehold transfer to the owners of Ramsgate FC at £265,000 with an overage provision of 50% on any uplift in value following a change of use, and a restriction on the use of the land, limiting it to uses as a football club and associated purposes only.

However, it will be expressly stated in the legal documentation that TDC will  not give consent to the sale of the land for any other use or purposes within 5 years of the sale.

A sale is preferable to raising the rent on a community based asset.

Members agreed that if the property was sold immediately after sale for redevelopment this would not send a good message about how TDC valued the importance of The Football club being on it’s present site for 70 plus years and providing a service to the community, encouraging children to play sport.

Cabinet could choose to retain some or all of the property on market value lease terms. This would be a difficult and politically sensitive negotiation, raising the rent on a community based asset, and the artificial pitch, pitch side bar, bar in the clubhouse and parking area have all been installed by the tenant.