Stockton-on-Tees Borough Council

DRAFT Asset transfer - Process

The process of asset transfer may be initiated in two ways:

• By the Council identifying an asset as appropriate to transfer either to sustain the current building and service delivery where a building has been deemed surplus
  
  or
  
• A request from a voluntary or community sector organisation

In the case of the latter, the Council will assess the initial request to determine whether the asset is suitable for transfer.

When there are a number of interested parties in an asset that has been made available for transfer, the Council will aim to encourage collaboration. However, when this is not possible a competitive process will be used to decide the outcome and the successful organisation will become the council's preferred partner in the transfer process.

For all assets, there will be an advert to the voluntary and community sector to ensure that all organisations have the opportunity to express an interest in acquisition. The marketing period will be appropriate to the asset and will be a minimum of six weeks. During the marketing period, expressions of interest and business cases will need to be developed by all interested parties. There may be occasions where this is restricted due to current lease arrangements and this will be considered as part of the process.

Submission of full proposal and business case

Fundamental to the success of any transfer is the applicant(s) demonstrating to Stockton Council that they have a clear rationale backed by a robust business case of their ability to manage the asset effectively. This needs to include an assessment of the financial and organisational capacity of the organisation.

Voluntary and Community Sector organisations applying for consideration to be given to asset transfer, will be required to submit a formal application which, depending on the scope and scale of the asset concerned will include some or all of the following:

• Organisational details
• Purpose of the transfer
• Benefits statement - benefits to the Council, the organisation, the wider community (and the sector as a whole)
• Business case - including sustainability of the building, potential to generate additional income etc.

As a minimum the business case will need to clearly identify:

• At least three years revenue or capital funding plans and projections of managing and operating the asset
• How it will invest in and maintain the asset including a specific plan as to how all health and safety responsibilities will be met
• The planned outcomes and benefits to result from the asset transfer
• Demonstrate a community governance structure with capability to sustain asset transfer and has the identified necessary capacity building requirements within their organisation
• Any sources of finance asset transfer will release or attract
• Track record of delivering services and or managing property
• Financial sustainability and forward planning
• Risk assessment and mitigation plan
• Evidence of consultation on the proposals

Key stages and indicative timescales

In considering the potential for asset transfer the Council will follow the process set out in the

Three weeks

One month

Following a review of the council's assets, cabinet will agree on which community assets are suitable for transfer and these will be advertised and local Voluntary and Community Sector organisations will be made aware. Expressions of interest and business cases will be required to inform decisions on transfer.

Speculative transfer requests will be subject to an initial assessment of the suitability of the asset for transfer. Should the asset be deemed suitable it will be advertised as being so to ensure an open and transparent process. Interested parties will be directed towards completing an initial Expression of Interest (EOI) providing details about the organisation, identifying the building proposed to be transferred, identifying the organisation's plans for the building and identifying any local support for the proposal (amongst local members and the local community).

Where there are current lease arrangements in place, the transfer process will need to consider the terms of this lease and this may limit the opportunity to advertise on particular buildings.

Submitted business cases will be evaluated against the criteria and principles set out in this document with the Council's Cabinet taking final decisions.

A transfer agreement will be required and transfer recipients will be expected to produce a statement of community benefit on a six monthly or annual basis (although these will not constitute a Service Level Agreement).