WBC buys Wolsey Walk Shopping Centre

I learnt today that Woking Council has purchased Wolsey Walk shopping centre. This is the smaller of the two shopping centres in Woking (the Peacocks is the larger centre).

The Council already owned the freehold of the centre and received 19% of rents collected. It is now the sole owner, at a cost of £68 Million. The centre is expected to generate profits of £1.5 Million per year for the Council (after costs).

The money has been borrowed from the Public Works Loan Board (a body of which I had never heard before but is apparently an 'Executive Agency' of the Treasury and has been going since 1793). The loan will be repaid over 50 years at a rate of 4.43% (according to Woking News and Mail - this detail was not in the press release).

I can see two positives to this purchase.

Revenue coming in to the Council can only be welcome. Presumably it will help to pay off the Council's existing borrowing. Hopefully it will keep our Council Tax down. It may even keep car parking charges down!

The shops, offices and homes in the centre all contribute to the economic well-being of the town. The Council has a role in maintaining the economic prosperity of the town.

However I also have concerns about this purchase. My concerns are in two parts.

Firstly about the ownership of the centre. What happens if there is a worsening economic downturn - a double dip depression. Will this lead to large numbers of empty shops? How about if there is new legislation requiring specific improvements or maintenance to shops in the centre or the flats above or the office space in what tends to still be known locally as BAT tower? Has the council allowed for such unexpected costs?

Secondly I am concerned by how the agreement to purchase the centre was reached. The decision was taken at a closed Council meeting. The matter was determined 'part 2'. This is business of the Council which may involve commercially sensitive information. Now I can understand that key details on the negotiation of price to buy the centre were commercially confidential but surely the principle of the purchase, i.e. borrowing no more than x amount, at a rate of no more than x% with a return of no less than x per year could have been put to an open council meeting. This is our council. Do these decisions really have to be taken behind closed doors?

I also think that the Council could do more to explain to the population about its borrowing strategy. Many residents are already concerned (rightly or wrongly) about the Council's level of borrowing. With new increased borrowing residents don't just need a press release about the Wolsey Walk purchase they need information and shared knowledge on what this level of borrowing means for Woking.

One final thought. Now the Council is sole owner will a rename of Wolsey Walk be in the pipeline. Could we see it becoming Morgan Meander or John's Jog?