York Councils empty property list revealed

Freedom of Information response confirms that buyer has pulled out of deal to buy 29 Castlegate
List of long term empty properties in York owned by the Council

The York Council has confirmed that it owns 12 substantial properties in the City which have been empty for over 6 months.

Two of the properties, Ashbank and the Guildhall, have been unused for over 6 YEARS.  

Ashbank was reported as being sold for £1.3 million a year ago. The Council now just says it is “sold subject to contract”.

The new Executive is expected to review the affordability of a £20 million scheme at the Guildhall which would see the creation of a “business club” there. If the project goes ahead, work will start in the autumn with reoccupation expected in 2021.

The estimated total value of the assets is put at between £30/40 million.

Little attempt has been made to secure short term lets for the properties which include prime sites like 29 Castlegate, the former youth advisory HQ.

Most of the properties have been exempt from paying business rates. Had they been occupied then Council taxpayers would have benefited from an additional £200,000 a year in income.

To this would be added rental income of around £400,000 a year or a substantial capital receipt.

The Castlegate property was to have been purchased by the York Conservation Trust with the York Civic Trust hoping to subsequently  lease the building as part of its expansion plans for the adjacent Fairfax House.

The agreed purchase price of £430,000 was criticised at the time as being “too low” for a building in such a prime site.

29 Castlegate

Now the Council says that it was notified on 21st May that the Conservation Trust would not be purchasing the building. However, the York Civic Trust had been told the same at their AGM last year. The Council say that they are now “reviewing” the position.

No public reports have been made on asset utilisation issues at the York Council this year.

The Council is spending around £80,000 a year on maintaining and securing the properties.

Only one of the properties has a temporary occupant (20 Piccadilly)

The table does not include underused assets like 19/21 Piccadilly (Spark) or land with a development potential. The latter includes land purchased in 2008 to accommodate an extension to Acomb Explore Library and which has been unused ever since.

19/21 Piccadilly

The Council says that it has only one Council house, at Glen Lodge, which has been empty for longer than 6 months.

The Council Housing department has been criticised in the past for allowing some of its estate garages to remain empty for extended periods of time.

The revelations have led to calls for a more proactive approach by the Council in the use of its assets. The new Council leadership has been advised to reintroduce a 6 monthly public report on empty property issues.

It may be that the time has come for the York Council to seek outside help in managing its huge commercial building portfolio

Empty Monks Cross restaurants could cost taxpayers £1.4 million

The Community Stadium saga has taken a new turn, with the Council admitting that it may not get the full £3.8 million which the developer has promised to pay for land allocated for three restaurants.

The units are unlet and if they remain so on the opening date, then the Council could receive £1.4 million less for its interest.

June 2019 Council report

The Council says that discussions are ongoing with several potential tenants.

A report the Councils Executive confirms that building work on the stadium should be completed in September. The buildings would then be handed over to the operators who will be responsible for obtaining a safety certificate. The Council claims that it still opens the stadium will be operational in October but that seems optimistic to many observers.

In the meantime, the Knights Rugby team continue to play their matches at Bootham Crescent. The Council plans to increase their subsidy to the club from £30,000 to £45,000 to compensate for the delays in moving to Monks Cross.

The stadium project cost £22.6 million during the 2018/19 financial year

Counter fraud team saves taxpayers £328,275 in York

Counter fraud work by the York Council saved taxpayers over £300,000 in York during the last year.

The figure is revealed in a report which will be considered by a Council committee next week.

The report reveals that it received 345 reports of possible fraudulent activity.

42% of the cases related to fraud in social care. 22% in Council tax/Rates, 18% related to housing fraud and 11 concerned benefit claims.

Officials also investigated the misuse of blue badges for parking. Officials claim that 84% of investigations were successful with two people prosecuted and a further 10 cautioned.

Three false applications for school placements were also halted.

In 2018/19 the team identified over £201,000 of losses to the council, for social care fraud. This was a 19% increase from the previous financial year. Over £137,000 of savings were produced which represents a substantial rise compared to 2017/18 (£38k).

Two people were prosecuted for fraudulently claiming monies, from the York Financial Assistance Scheme, that they did not require.

Cost of Ascot Way disabled centre soars by 37%

Council blames the “complexity” of the selected design for the increase.

A Council report published today reveals that the cost of the Centre of Excellence for Disabled Children will increase from the originally budgeted figure of £4.3 million (January 2018) to an estimated £5.9 million.

Demolition works have started at Windsor House

This comes after the Council, In April 2018, had agreed to increase the proportion of the costs which would be funded by borrowing

£1.1 million of the increased costs will come from a Health service grant with the rest being transferred from the education budget.

It appears that some features  of the building are being “value engineered” out of the design.

The centre is being built on the site of the Windsor House elderly persons home. The neighbouring Lincoln Court independent living building is also being modernised and extended at the same time.

While both projects have been welcomed, concerns have been expressed about traffic congestion and parking issues in the area.

The impact of the developments on open space and sports facilities in the neighbourhood have also been criticised.

Details of the new budget allocations are being kept secret by the Council. It is unclear what promised features in the building may now be omitted.

The meeting to consider the budget increase is taking place on 18th June.

So where next for the York Council

The LibDems emerged from Thursday’s elections with the most seats. …..but they are short of an overall majority.
The York Council HQ at West Offices

The onus will be on their Leader Keith Aspden to negotiate a programme which will guide the City through, what are likely to be, 4 challenging years.

He would be wise to pause for thought. The immediate aftermath of a successful election – and the hyperbole that surrounds it – doesn’t always provide the best environment for considered decision making.

There is, however, an element of urgency. Towards the end of the last coalition administration growing tensions were evident. They weren’t restricted to the, rapidly disintegrating, Tory group members. Decisions were put on the back burner while some long held LibDem polices were jettisoned.

That needs to change quickly.

If a coalition arrangement is to continue, then the only two groups which could together commend a majority in the Council chamber are the LibDems and the Green Party.

 The latter are not famous for their tight discipline and consistency. But it could work if a policy programme could be agreed. If they are to negotiate, then the Greens must not overplay their hand. They remain a small party with limited electoral appeal. They need to identify a small number of policy areas where tangible change – and improvement – is deliverable. It will mean some realism about what is possible given the financial constraints placed on the Council.

There are two areas where there may be common ground between the two parties.

The first relates to the way in which the Council does its business.  The “Strong Leader” executive model may work efficiently where there is a party with an overall majority. It is markedly less successful where the Council is “balanced”. It reached its nadir when, two years ago, the then Tory Council Leader summarily sacked two (LibDem) members of the Executive. It later turned out that the justification for doing so was entirely bogus.

A return to the committee system may be a potential area of agreement. The system allows for all members of the Council to participate directly in the decision-making process. No party, after all,  has a monopoly on wisdom

The Committee system might also help to address the second major failing of the Council – a lack of transparency. The Greens said in their manifesto that there should be a presumption in favour of disclosure (of information).

They were right.

At the moment the Council hides behind an opaque wall of silence. Freedom of Information requests flourish. The costs of answering them are greater than would have been the expense of voluntarily publishing information routinely.

With openness people would come to trust the Council more.

There are other more specific policies which would signal that change had taken place.  

Public service standards in the poorer wards continue to decline. Life expectancy is lower there and obesity levels – and lack of attractive active leisure facilities – are higher.

The LibDems could address their growing “Middle England” image by prioritising a programme focusing on improving public services in the poorer neighbourhoods

The voting patterns on Thursday revealed that the electoral turnout was as much as 15 points down in neglected wards when compared to the leafy suburbs and villages.

That can’t be good for democracy and may explain why some extreme politicians have seen success over recent years. Extremism feeds on disillusion and neglect.

Action now may be the best way for the politicians of the centre to consolidate their influence on the reins of power in the future.

Of course, it takes two to tango and there may not be a majority for discursive decision making on the new Council.

If so, the LibDems may try to establish a minority administration.

If they do, they would be wise to spread power around the Council chamber as far as they are able. Scrutiny committees should be chaired by opposition Councillors, as should the influential Audit committee.

There are experienced independent Councillors who could contribute by taking senior roles in the planning process.

Whatever happens an early statement of intent will be expected by the residents of York.

Empty Council owned Castlegate property – future still uncertain

29 Castlegate, which is located next to Fairfax House, and is owned by the City of York Council continues to be left empty.
29 Castlegate

Hopes that the property might be purchased by the York Conservation Trust have disappeared following a change of Chief Executive. They had been expected to purchase the iconic building for around £431,000. The discounted sale price was justified in 2017 by claims that significant repair works were needed.

At the same time, the York Civic Trust said that they were set to lease the building with an investment of £2.8 million to be made, as part of an expansion of activities at Fairfax House.

It became clear 6 months ago that the York Civic Trust had suspended their plans.

The building – which also benefits from a valuable showroom frontage onto the Coppergate Shopping Centre – was used for many years as a photographic gallery. When the gallery moved to Bradford, the Council allocated the space to be used as a youth advice centre.

In 2012 the, then Labour controlled Council, commenced negotiations to move the youth facilities elsewhere. The proposal was widely condemned.

The building has remained empty for over 3 years. Potentially this has cost the Council tens of thousands of pounds in rent and rates income.

Addressing the problems with empty Council owned properties should be a top priority for the new administration when it is elected this week. Too many expensive, high profile, properties like 29 Castlegate and the Guildhall have been left to rot. In future York Councillors must insist on receiving an “unused asset” report on a regular basis. It needs to be transparent.

If the Civic Trust deal on Castlegate has fallen through, then the property should either be leased or sold on the open market.

Because of its prestigious location there is likely to be a lot of interest.

This might include bringing part of the building back into residential use.  With apartments at the nearby fire station site selling for over £700,000 each, the opportunities at this address will be obvious to many developers.

Either way, something needs to be done quickly.

Spark container village – payments to Council revealed

In response to a Freedom of Information request, the York Council has revealed that it has received £13,333 in rent from the Spark container village on Piccadilly since they first arrived in September 2017.
Spark April 2018

This amounts to little more than £700 a month since the organisation took over the prime site.

No payments have been received by the Council from the “profit sharing” scheme agreed as part of the deal to allow shipping containers to be installed on the site. The council says it is still awaiting receipt of accounts for last year. The last accounts filed by Spark were for the year ending March 2018.

£19,856 is owed by Spark and its tenants for Business Rates. The Council says that it is taking recovery action.

The original Spark business pitch to the Council talked about a £71,000 profit each year. Part of this was to be used to repay the Council’s initial investment (which cost over £40,000) in new utility infrastructure,

The container village has been controversial from the start with long delays in meeting some planning conditions. An instruction to replace graffiti style street art with cladding on the Piccadilly frontage is still outstanding (click for background)

The contract allows for the Council to take back the site if, after 21 days, the tenants have failed to pay the rent or complied with their obligations under the Lease.

Many of the individual units have been empty over recent months.

Although warmer weather may give the containers a temporary boost in customer numbers, it is surely long overdue for the Council to test the market by advertising the site for permanent redevelopment.

York Council response to Freedom of Information request 29th April 2019

How do the party election manifestos compare in York?

  1. Financial management

Now that all the parties have published their election manifestos for the Council polls – due on 2nd May – we’ll be looking to see what each party is offering.

Usually it is not so much what the party leaders say they will do that attracts interest.Rather it is the issues that they are silent on which cause the most anxiety.

There is a certain lack of candour on financial strategy in all four documents.

Taxpayers bonus from Rod Stewart concert

It looks like Council taxpayers will get a boost from those parking locally at the Rod Stewart concert which is being held on the Knavesmire on Saturday 1st June.

The Council will get the profits from car parking as the event falls outside the terms of the existing Racecourse lease.

Rod Stewart holds the official record attendance for a (free) outdoor concert. 3.5 million attended his gig at Copacabana beach in Rio a few years ago.

Rather fewer are expected to make their way to the Knavesmire in June

”Welcome to Yorkshire” parts company with colourful Chief Executive


Sir Gary Verity has been sacked by the Yorkshire Tourism development company “Welcome to Yorkshire”.  Sir Gary left the company on Friday citing “health” reasons.

An article in today’s Sunday Time puts more flesh on the bones of the announcement.

It includes worrying allegations of bullying and expenses irregularities.

Welcome to Yorkshire (WTY) replaced the Yorkshire Tourist Board which used to have its headquarters in York on Tadcaster Road. WTY moved out and currently lets the Tadcaster Road building to another organisation. Its registered office address is now in Leeds.

 Tourism in York is run via “Visit York” which in turn is partly funded by the “Make it York” Quango. Over £1 million a year is paid by York taxpayers to that organisation. It is not however directly linked with WTY.

York does get some benefits from WTY publicity. A local race meeting has been sponsored and some advertising has taken place at the railway station.

Welcome to Yorkshire receives grants from both central and local government. Its Board includes four Councillors (3 Tory and 1 Labour). They are Carl Les (North Yorkshire), Richard Cooper (Harrogate), Stephen Parnaby (East Yorkshire) and Steve Brady (Hull)

Other Board members mainly have business backgrounds. The Chair is Ron McMillan who was formerly with Price Waterhouse.

Two other Directors left the company in March

WTY is a private company limited by guarantee. Its detailed expenditure – and income – is largely opaque. However, it is most widely known for sponsorship of sporting events. These include cycle races. cricket and horse racing.  The level of hospitality associated with these events is likely to be the subject of conjecture over the next few days.

WTY had a turnover of just over £4 million in the year to March 2018 (the last figures available).

About half this went on the cost of employing 46 staff. One Director – understood to be Sir Gary – received £243,453 .

WTY reported a profit of £251,173 in the year.

As a private company Welcome to Yorkshire is not subject to Freedom of Information legislation.

However with a significant part of its income coming from taxpayers, many will feel that more transparency is required in its dealings.