Agenda item

To submit the report of the Head of Highways, Waste and Property.

The report of the Head of Highways, Waste and Property in response to a request in a business plan by Beaumaris Town Council (included as Appendix 1 to the report) to take ownership of Castle Car Park, Beaumaris was presented for the Executive’s consideration.

Councillor Gary Pritchard, Leader informed the meeting that he had received a request from Beaumaris Town Council to defer today’s decision. As both Leader and a resident of Beaumaris, he considered that the Town Council had already been given a fair opportunity to present a business case, noting that the lease on the car park had expired in July 2025. He did not believe there were any further grounds for postponement and confirmed that the matter would therefore be determined at today’s meeting.

Councillor Ieuan Williams, Portfolio Member for Highways, Waste and Climate Change presented the report, noting that the Council transferred Beaumaris Gaol and Court to the Town Council in July 2020, following an assessment based on a consultant’s opinion that approximately £600k of investment was required on the buildings. To support the Town Council in meeting these costs, a 5 year lease on Castle Car Park was granted from 15 July 2020 to 15 July 2025  with the income (around £100k per annum) intended to contribute to the upgrade costs. The Town Council has since requested that Castle Car Park be transferred into its ownership in perpetuity for no consideration.  The request has been considered with the recommendation that it be refused. Instead, it is proposed that the lease be extended until 31 March 2026 on the same terms as before in recognition of the income lost during the Covid 19 pandemic. The Executive recommends refusal for the following reasons –

·      Section 123 of the Local Government Act 1972  prohibits councils from disposing of property (except by way of a short tenancy) for a consideration less than the best that can be reasonably obtained (without ministerial consent). The car park is valued at between £900k and £1.2m, based on the average gross profit set out in Beaumaris Town Council’s  business plan.

·      Transferring such an asset to the community for no consideration or consideration less than the best than can be reasonably obtained would set a new precedent and represent a departure from Council policy on the disposal of property. It would also undermine Council policy on asset disposal, likely encourage similar requests from other communities on the basis of the new precedent, and could potentially reduce future capital receipts from comparable sites.

·      The Town Council’s business plan suggests that the primary purpose of the request is to maintain the precept at a low level. It does not state that income from the car park is being invested in the Gaol and Court, which was the original intention behind granting the lease. The Beaumaris Town Council’s current precept is £39k which is considerably lower than that of each of the four other town councils.

The Head of Highways, Waste and Property emphasised that the car park would remain available to the town and other users for parking purposes and that the issue under consideration relates solely to the future of the income. In his view, returning the asset to the County Council’s management would support improved parking enforcement in the town.

In response to Executive members’ questions about how the Town Council had used the car park income, whether it had engaged with the County Council before the lease expired and what charging arrangements would apply if the car park returned to the Council’s control, Officers clarified  –

·      That according to the business plan, the Castle Car Park generated £113k in revenue in 2024/25 with direct expenses of £48k and gross profit of £64,572 . Of this,  £25,670 was   reinvested in the car park though no breakdown is provided, and £13,181 was allocated to the Gaol and Court leaving £25,721 to support the precept. The Town Council’s accounts show that its balances increased from £419k in 2020 to £798k in 2025.

·      That the Town Council has continued to collect income from the car park since the lease expired in July 2025. It is recommended that the Town Council be allowed to retain this income as compensation for the nine months of lost income during the Covid-19 disruption.

·      That near the end of the lease period, the County Council contacted the Town Council to notify it of the lease expiry date and the Council’s intention to resume control of the Castle Car Park. The July 2025 end date was not ideal for transferring control and changing income collection arrangements, as there was a risk of income loss. During discussions at that time, the Town Council expressed a desire to take ownership of the car park and the Council requested a formal application and business plan. The expectation was that the plan would set out projected and actual expenditure on the Gaol and Court over the five year period, alongside projected and actual income from the car park.

·      If  the car park returns to the County Council’s management, the intention is to introduce charges for one-hour, two-hour, four-hour, and all-day stays, with a separate tariff for coaches.

The Executive considered that there were gaps in the Business Plan submitted by Beaumaris Town Council, most notably the absence of evidence showing how income from the car park had been used for the Gaol and Court over the  five year lease period. Members noted that the plan appeared primarily focused on maintaining a low precept with continued control of the car park contributing to that aim. Neither does the plan set out a clear future reinvestment strategy for the Gaol and Court. For the reasons stated, members concluded that they were unable to approve the request.

It was resolved to refuse the request presented in a business plan by Beaumaris Town Council to transfer the Castle Car Park, Beaumaris to the Town Council, and to offer them a new lease instead, until 31 March 2026 on the same terms as the original lease.