Council's land loss of £13m
A Black Country council is expecting to lose out by more than £13 million as the value of its land has plummeted during the recession.
A Black Country council is expecting to lose out by more than £13 million as the value of its land has plummeted during the recession.
The sales of three former schools, which were originally valued at £9m, have been removed from Sandwell Council's budget due to doubts over their appeal to developers. And the council is expecting to lose £2m a year until 2011 on the sale of other plots of land after dropping the income which is expected from £5m a year to £3m a year.
Council bosses are today expected to approve diverting £4.4m – which was set aside from its income and council tax last year – into its building programme.
St Michael's, Westminster and Whiteheath schools in Rowley Regis were all expected to be sold for development this year.
They were demolished over the summer and are being replaced by the Rowley Regis Learning Campus which will have more than 1,000 pupils and is due to open in 2011.
Council director of finance Stuart Kellas said: "Due to continuing problems with selling land and buildings in the current economic climate a number of amendments have been included within the forecast capital resources." On the sale of general land the council expects to be making £7m a year again by 2012.
Deputy Tory leader Councillor Ray Nock said: "I do not think it is right to divert £4.4 million of revenue, which was meant to go on front line services, into building projects.
"This money was allocated to help the people of Sandwell and I think that is how it should be used."
The council has been unable to sell 200-space car park in High Street, Great Bridge, which it closed in April amid criticism from market traders. The council has refused to reopen the car park while it tries to sell it despite claims from nearby traders that their business has halved as a result.
