Apologies were received from Councillor Jones.  As a result this left the meeting without a chair (the position of vice-chair being vacant). 

Annette Wiles opened the meeting and invited the members to elect a chair for the meeting.  Councillor Attawar nominated and Councillor Makin seconded Councillor Uddin as Chair.  This was agreed by the members of the panel.

There were no declarations of pecuniary interests.

Councillor Uddin proposed that the meeting remained open and therefore with no reference to any information in the exempt agenda up until Panel members start to debate the issues raised.  Councillor Sargeant suggested it would be beneficial for the meeting to remain open to the public and therefore that the Panel should review if it is necessary to go into an exempt session.  This was accepted by the panel.

PRESENTATION OF THE CALL-IN

Councillor Grocott presented the call-in on behalf of all signatories to the request.  She stated:

·         Potential alternatives to the freehold sale of P4 have not been considered.  This is stated in 3.12.1 of the officers’ report.  As stated in 3.4.1 only prevailing market conditions have been considered;

·         The time that has elapsed since the Cabinet’s decision to sell the land in 2013 has not been used to undertake a strategic review of its decision;

·         The decision to sell P4 for commercial purposes is lifting the restrictions on use away from the Council’s Draft Local Development Framework and Policies Development Plan;

·         Proceeding with the sale at this time is before the cross party plan being developed in response to Crossrail2 is available.  The sale of P4 will have implications for Wimbledon Town Centre beyond 2023 when work on the development of Crossrail2 will start; and

·         The officers’ report highlights there are no restrictions on the use of the P4 site and therefore there is nothing to stop the developer requesting a change of use.  Additionally, by selling the freehold, the Council is ceding control of the site which is contrary to policy.

Questions to Grocott:

·         Councillor Sargeant: is there an implication in the call-in request that the Council is missing out on the upward valuation of the site without having the relevant planning permission in place?  Councillor Grocott indicated she was unable to respond as the answer to the question is stated in the exempt agenda.

EXPERT WITNESSES

1.    Jeff Morton (investment management expert, Henley Investment Management):

·         Mr Morton requested he be permitted to circulate a briefing paper.  Councillor Uddin agreed (attached to the minutes);

·         He highlighted his credentials; 28 years of experience having transacted in excess of £2.50bn of sales and acquisitions over the last 10 years;

·         Stated that the key decision is whether to hold or develop the land with consideration of market conditions.  Highlighted the effect uncertainty caused by the EU referendum is having on market; this may be affecting the value being realised for the sale of the freehold because purchasers may be having greater difficulty raising investment capital;

·         Highlighted that in developing the site there are three main options; a freehold sale, a geared investment or a joint venture;

·         Stated a gear interest arrangement is very common, notably in the City where it has been used by various estates.  This could be used to provide a capital receipt as well as on-going revenue income whilst allowing more control over the use of the site longer term; and

·         Whilst a sale of the freehold  ...  view the full minutes text for item 3.