Issue - meetings

The Cabinet considered a report on the process of transferring Bromsgrove Museum to the Friends of the Norton Collection (the Friends). Following discussion it was

RESOLVED  that the land and premises at Birmingham Road, Bromsgrove on which the Bromsgrove Museum is located be disposed of to the Friends subject to the following:

(a)       that any disposal of the land (whether by sale, lease or otherwise) to the Friends be conditional upon the Friends becoming a registered charity with a registered charity number and that the disposal be made to the registered charity;

(b)       that the consideration for a sale of the land to the Friends be for current market value;

(c)        that authority be delegated to the Head of Legal, Equalities and Democratic Services and the Head of Financial Services in consultation with the relevant Portfolio Holder and the Executive Director of Partnerships and Projects to agree the terms of such disposal (whether by sale, lease or otherwise) to the Friends provided that appropriate provision be included for the following:

(i)         in the event of a dissolution of the Friends or in the event of the Friends subsequently proposing to sell, lease or otherwise dispose of or transfer all or part of the land or all or part of its interest in the land the Council be granted a right of pre-emption to have the first right of refusal to acquire the land

(ii)        a formula for calculation of the sum at which the Council would be entitled to re-acquire the land when exercising its option or right of pre-emption , such sum to reflect the lower of either

            market value as at the date of re-acquisition: or

            a sum which should not exceed the consideration for the sale to the Friends plus 1% simple interest per annum plus the value of any improvements undertaken by the Friends.

(iii)       appropriate covenants as to the future use of the land supported by a clawback provision in the event of a subsequent change of use to which the Council has not consented;

(iv)       appropriate covenants as to the maintenance of the building; and

(v)        a restriction against dealings in the land without the consent of the Council.

(d)       that any disposal of the land to the Friends be conditional upon the heads of agreement being agreed by both parties by 31st December 2009; if the negotiations are not concluded by this date authority be delegated to officers to explore alternative proposals for disposal of the land and the Collection; and

(e)       that contracts for the disposal of the land to the Friends be exchanged by 31st December 2010.  

RECOMMENDEDthat any transfer of the Collection to the Friends be conditional upon the Friends becoming a registered charity with a registered charity number and that the Collection be transferred to the registered charity.