ON the advice of the office of the Local Government Ombudsman, a number of Kirtonians have made a formal complaint to Mid Devon District Council (MDDC) about its proposed sale of the Crediton Council Office to a commercial buyer rather than to Crediton Town Council.

The residents, Paul Tucker, Judith Tucker, Jonathan Ward and Margaret Haydon, wrote to Stephen Walford, MDDC chief executive: “As citizens of Crediton and council tax-payers of Mid Devon District Council we feel that we have suffered adverse discrimination by the District Council in that we have supported the advantageous sale to Tiverton Town Council of their offices but have been denied the same advantage here.

“We also question the fact that we are being deprived of a valuable community asset without any public consultation whatsoever and the apparent democratic deficit in the District Council’s proceedings by which the sale decision was made.

“We would be grateful if you would give us details of your complaints procedure without delay. We would like to resolve the matter as soon as possible so as to avoid having to report these issues formally to the Ombudsman.”

All four residents signed the letter and it was sent by Royal Mail Signed-For Delivery and delivered on July 6.

NO REPLY FROM MDDC

As of Wednesday, July 11, the residents said that no acknowledgement or reply had been forthcoming from Mid Devon District Council.

While MDDC did not respond, the “Crediton Courier” has received a reply from Mel Stride, the MP for Central Devon, who also received a copy of the letter from the four residents.

Mr Stride writes with regard to MDDC’s plan to sell the Council Offices: “As I hope will be appreciated, the sale of local authority property is a matter for the local authority concerned and Members of Parliament do not have a right of veto.

“Long-time readers of these pages will recall that the matter of a precedent being set by the sale of Tiverton Town Hall was clarified by Stephen Walford, Chief Executive at MDDC in a letter to the ‘Courier’ last year.

“Mr Walford explained that the Tiverton case could not apply once Crediton Town Council had submitted an application to register the offices as ‘an asset of community value’.

“That decision meant that a particular process then had to be followed with community groups able to express interest and time allowed for them to raise funds.

“This process was duly followed and, as Mr Walford has confirmed to the ‘Courier’ online and in the newspaper, the bid received from the Town Council ‘would have resulted in the Council (Mid Devon) receiving less than 50 per cent of the restricted value, with other offers having been made at significantly higher levels.’  

“I have written to Mid Devon District Council to ask what might be able to be done to assist those organisations who may now require new office space.”

CREDITON TOWN COUNCIL OVERVIEW

In response to many enquiries and complaints regarding the Council Office building and MDDC’s decision to sell it to a private buyer, Crediton Town Council has produced an overview document about the process, to-date.

It reads:

“The Crediton Council Office building has provided public services for in excess of 40 years and Crediton Town Council has been based in the building since the 1970’s.

The current and main use of the Council Office building since the 1970’s has been to provide a home to a range of high quality public services, information, signposting, access to support services and associated facilities, which enable and enhance the quality of life and life chances of those living in Crediton and its rural hinterland. Although the District Council withdrew its services on April 1, 2016, the building continues to be a hub for community and public services. These services are valued and much-needed.

Below is a list of some of the services provided within the building over the last 12 months.

• Crediton Town Council Offices and Meetings

• Crediton Hamlets Parish Council Meetings

• Citizens Advice Office

• Community Transport Office

• Churches Housing Action Team Outreach Surgeries

• Devon In Sight events

• Devon County Council Highways Surgeries

• Devon County Council Child in Care Meetings

• Crediton International Social and Cultural Organisation English classes and support services

• Crediton Town Team Meetings

• Crediton Chamber of Commerce meetings

• Stanbury Court Residents Meetings

• Numerous training and consultation events

• The building also supports events on the Town Square by providing essential secure and covered space e.g. changing facilities for plays, storage of equipment, acts as a First Aid point, central marshalling/steward point for the dissemination of information and equipment. In 2016 the Town Council commissioned Devon Communities Together to undertake a feasibility study regarding the building and its use. This concluded there is substantive evidence regarding the value of the Council Office building remaining a community hub and its contribution to the reduction of the negative impacts on rural isolation and its positive contribution towards social, educational, health and well-being of the local community. Further useful information regarding the series of events:

1 In 2016-17, Crediton Town Council negotiated with Mid Devon District Council (MDDC) officers to purchase the Market Street Council Office building at a cost of £95,000 – half of the restricted* value subject to the following:

• MDDC undertaking all structural works to the building, in order to make it structurally sound.

• MDDC undertaking all work necessary to ensure that the building meets the minimum required rating standard of E.

• To include all fixtures, fittings and contents. For the avoidance of doubt this includes the railway sign and memorabilia, which were gifted to the Town Council and all wall hangings (pictures, paintings etc.)

2  This offer represented parity with the sale of Tiverton Town Hall to Tiverton Town Council. Tiverton Town Council purchased Tiverton Town Hall for 50 per cent of the restricted value and MDDC agreed and paid for works to be undertaken to the building, to ensure it was of an acceptable standard before completion.3  MDDC’s Capital Asset Strategy Management Group resolved to accept Crediton Town Council’s bid in April 2017. This decision was communicated to the clerk of Crediton Town Council by email on April 27, and on May 25, that it would be put to the Cabinet on July 6.4  On July 6, 2017, no such decision was ratified by the Cabinet. The Town Council assumed, therefore, that the asset might be disposed of via the open market at full commercial value and that it could happen quite quickly. On July 11, 2017, the Town Council applied to register the building as an Asset of Community Value under the Localism Act 2011. This legislation gives communities time to try to save a community asset if faced with its commercial sale.

5  When a registered community asset is to be sold, the legislation triggers a six month moratorium on the sale. It gives any interested community group, including the town council, six weeks in which to express an interest in bidding and the remainder in which to try to negotiate the purchase.6  The owner may not sell during the moratorium, with the one exception of selling to a community group. (It is important to note that Regulation 13 of the Assets of Community Value (England) Regulations 2012 classifies a Town/Parish Council as a community group.)7  The MDDC Scrutiny Committee, September 28, 2017, was told that the sale in Crediton must be treated differently to the town hall sale in Tiverton because the Crediton asset had been registered. It could now not be sold for six months. That is not correct: see paragraph 6 above. The monitoring officer read to the committee the relevant legislation. (See also paragraphs 9.5 and 9.6 of Community Right to Bid: Non-statutory advice note for local authorities). The lack of parity between Crediton and Tiverton has nothing to do with the registration of the asset or the Community Right to Bid.8  The Local Government Act 1972: General Disposal Consent (England) 2003 gives Mid Devon District Council the ability to sell the building undervalue where it can be shown that the sale would contribute to the promotion and improvement of economic and social well-being of the community. (See also MDDC Asset Management and Capital Strategy Plan 2016-2020, Appendix 2, 1.3-1.7)9  At a MDDC full Council meeting held on February 21, 2018, Cllr Letch put forward the following motion:

‘I ask Council to urge Cabinet to agree to the sale of the Crediton Council Office Building to Crediton Town Council on the same basis as the sale of Tiverton Town Hall to Tiverton Town Council, where precedent has already been set, which is 50 per cent of the buildings restricted value.’

This motion was carried 23 For, 3 Against and 11 Abstentions

10 On May 10, 2018, MDDC Cabinet resolved that subject to contract, to dispose of the Crediton Office building to Buyer 2 on the terms set out in paragraph 3.5 of a report, (which has not been released in the public domain) because:

(a)

(b)

(c) (d)

The offer from Buyer 2 is the best offer put forward during the marketing period and it is a clear indication of the best consideration which can be reasonably obtained;

The offer from Buyer 2, although below the most recent unrestricted valuation, would not require vacant possession and thus save time and money in securing the transfer;

The Council realises a significant capital receipt and gives up future liability for an asset which is surplus to the Council’s requirements.

The offer from Crediton Town Council would result in disposal of the office for a capital receipt which was less than 50 per cent of the restricted value.

11  The Cabinet decision made on May 10, 2018, was called in by MDDC’s Scrutiny Committee and considered on May 21, 2018. The Scrutiny Committee resolved that the Cabinet be requested to reconsider its decision to dispose of the building to Buyer 2 and that the Town Council be allowed to make a final offer for the building.12  It must be noted at this point that MDDC had had the building revalued and had not advised the Town Council of the new restricted value, which had increased since the initial valuation in 2016.13  On May 10, 2018, MDDC’s CEO, Mr Stephen Walford agreed to the disclosure of the new restricted value of the Council Office building to the Town Council.14  On May 23, 2018, the Town Council submitted a new offer to MDDC, which was £102,500, being half of the new restricted value. The offer was also subject to the following:

• MDDC undertaking all structural works to the building in order to make it structurally sound. • MDDC undertaking all work necessary to ensure that the building meets the minimum required rating standard of E.

• To include all fixtures, fittings and contents. For the avoidance of doubt this includes the railway sign and memorabilia, which were gifted to the Town Council and all wall hangings (pictures, paintings etc.) The Town Council was most insistent on parity with the sale of Tiverton Town Hall to Tiverton Town Council and the offer made reflected this.15  The Cabinet reconsidered its decision on June 14, 2018 and resolved that its original decision would stand.16  By purchasing the building, the Town Council wished to secure a long-term base for its services and for the cluster of other community organisations that it currently accommodates, including Citizens Advice, Community Transport, Churches Housing Action Team, Devon in Sight and Child in Care Service etc.17  By agreeing the sale to the Town Council, as per its bid, Mid Devon District Council would have promoted the economic and social well-being of the Crediton community. Conversely, the loss of the council offices as a service hub will impact negatively on our most vulnerable residents in particular.

* Restricted Value is the value of the building if it is used by public bodies and charities.”

• What do you think about the proposed sale of the Crediton Council Office by Mid Devon District Council?

Share your views with fellow "Courier" readers. Write a letter to: The Editorial Manager, "Crediton Courier", 102 High Street, Crediton EX17 3LF.

Please include your name, address and a daytime telephone number, not necessarily for publication.

Alternatively, email your letter to: [email protected] . Please ensure you include your name, address and a daytime telephone number, not necessarily for publication.