Croydon Council has revealed the final list of 13 assets it will sell to address its historic £1.4bn debt burden.
Among the council’s more ‘sensitive’ assets are several car parks and a scout hut.
While Croydon’s Mayor Jason Perry insists the decision to proceed was necessary to ensure financial stability, he admits the three-stage sale process had been a ‘learning curve.’
Croydon’s opposition has now called on the council to avoid a ‘heavy-handed’ approach they feel has been adopted in the past.
A council report last week revealed the third and final asset tranche, following the previous two rounds.
According to the report, sales from the first two lists have generated a total of £232m.
Tranches one and two, which the council is still selling, were supposed to represent some of the council’s less sensitive ‘quick wins.’
In a cabinet meeting last night (December 5), Perry admitted, “There are no quick wins left, and the sales on this list may be more difficult and take longer to achieve.”
The list of assets included on that list is as follows:
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Merstham Quarry & Percolate Tank Site
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Coombe Road (former substation Adj Coombe Lodge, now used for storage)
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Wellington Road, CRO (Site Adj. No 9)
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Carberry Road, SE19 (Sites Of Nos. 5/9)
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Pavilion no 3, Purley Way
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12th Caterham (Parsons Pightle) Scouts, Coulsdon
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136 Church Street, Croydon
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49 Russell Hill 49, Purley
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Mortuary Bungalow 152 London Road, Thornton Heath
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The former Upper Shirley Road Depot
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Clifford Road Car Park, Norwood Junction
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Belgrave Road Car Park, South Norwood
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Granville Gardens Car Park, Norbury
While the council promised to provide ‘more narrative’ and detail around the assets on the list, the car parks mentioned are the most notable of the recent cohort.
After the sale, Croydon will lose 135 bays housed at Norbury’s Granville Gardens car park.
The borough would also lose 26 bays at Clifford Road car park and 15 at Belgrave Road car park.
Purley Way’s embattled sports pavilion, the subject of a recent fire, will also face sale as part of this list.
Croydon’s finance lead Jason Cummings told the chamber how the decision to press on with sales was a tough but necessary decision the council had to make.
He and the Mayor frequently blamed the previous Labour administration for its ‘toxic debt’ and emphasised the need to show Croydon was being ‘sensible’ with its finances.
He said: “We are really at that point in asset disposals where it is getting really difficult in terms of who is in buildings, the services being provided in them and the difficulties of relocation.
“We have to do absolutely everything we can to deal with our problems, and it is only once we have done everything we can and at that point the government will consider assisting us.
“There is no option here for us, If we want to solve Croydon’s financial difficulties and get a deal with the national government, we have to go through this process, and we have to do every single thing we can to meet those challenges ourselves. This is part of that process.”
However, Croydon’s leader of the Labour opposition questioned the council’s zeal and urged consideration of the tenants who would be affected by the sale of these buildings and spaces.
King told the Local Democracy Reporting Service (LDRS): “We support the careful disposal of assets for which the council no longer has a genuine need.
However, the plan to sell off 68 sites this year with more to come raises concerns that this is a firesale, not a carefully thought through plan.
We are especially concerned about instances where the council appear to be behaving in a heavy handed way in their dealings with sitting tenants”.
This last comment refers back to a controversy surrounding the second tranche of asset disposals, approved late last year.
During that phase, Croydon failed to inform over 16 charitable organisations that their buildings were due to be sold.
This led to anger and confusion about how the charities would continue their vital work, including services the council cannot provide. One of the charities affected was Croydon Mind, whose Pampisford Road building was due to be sold.
At the time, Croydon Mind’s CEO Emma Turner told the LDRS: “We have expressed to Croydon Council that we are deeply concerned about the changes it is considering as part of its asset disposal programme and the impact that this could have on our ability to deliver services for our community.”
Mayor Perry quickly apologised to Mind and the other charities after news of the ‘oversight’ emerged. He added: “I very much do regard and hold you as valued and trusted community partners and I apologise if that did not come across in the way that this was done.”
During the recent cabinet meeting, Perry acknowledged that the sales process had been ‘a learning curve’ and said he was happy to meet with any tenants affected to ‘mitigate the impact of asset disposals.’