A CAMPAIGNER fighting to save The Hill claims the move to release the restrictive covenant in exchange for land at Coleg Gwent's site near Usk to build a new County Hall is potentially illegal.
Labour's parliamentary candidate for Monmouthshire Hamish Sandison opposes what he says is "asset-stripping" of The Hill campus in the town.
Mr Sandison told The Chronicle, "Monmouthshire County Council leader Peter Fox and Coleg Gwent Principal Howard Burton have been put on notice that, without independent legal advice and property valuations, it may be unlawful for them to proceed with their proposed property deal by which MCC would release its restrictive covenant over the Hill College in Abergavenny for £618,000 in exchange for land at Coleg Gwent's site near Usk to build a new County Hall."
Following a meeting with members of the Abergavenny Development Forum, and the Bryn-y-Cym Community Forum, Mr Sandison has written to Councillor Fox and Mr Burton to express his concerns.
"I am very worried that, if this proposed swap were to proceed, it would be unlawful and vulnerable to legal challenge. I am also concerned that it represents very poor value for money for the council tax payers of Monmouthshire. I am therefore urging the parties to take independent legal advice and obtain property valuations before they waste any more taxes on a potentially illegal property deal.
"As Labour's parliamentary candidate, I will continue to campaign to keep the Hill open for educational use, and will oppose its use for development by property speculators. I hope that MCC and Coleg Gwent will take this opportunity to pause in their headlong rush to asset-strip the Hill and will allow the staff and other interested groups the time they need to come up with alternative plans to secure its future as a viable home for first-class further education for the people of Abergavenny and beyond."
In his letter to Councillor Fox and Mr Burton, Mr Sandison explained that the proposed swap appeared to be unlawful because, "Neither MCC nor Coleg Gwent has obtained independent valuations of what it is worth to release Coleg Gwent from the restrictive covenant limiting the College's use of the Hill to educational purposes until 2016 or the value of the land being acquired near Usk to build a new County Hall.
"As a result, it is impossible to know whether the restrictive covenant is being released at its "open market value," as the terms of the covenant require. Contrary to what Councillor Bob Greenland was reported as suggesting in last week's Abergavenny Chronicle, it is clear that the parties cannot comply with the covenant simply by "deciding" to set its value 'without the expense of consultations and negotiations.' The covenant requires them to negotiate and agree a price at arms' length or refer the matter to an arbitrator.
"MCC Cabinet minutes relating to the Hill on May 6 suggest that the council has general powers to dispose of assets at lower than valuation, but these general powers cannot override the specific terms of the restrictive covenant, which can only be released if the parties agree (or an arbitrator determines) an "open market value."
In 'deciding' its value to Monmouthshire, MCC has also not taken into account the fact that any proceeds from sale of the restrictive covenant may have to be shared with the other unitary authorities which comprised the greater Gwent County Council when the covenant was originally imposed."
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He added, "The 'value' purportedly received by MCC to build its County Hall near Usk may not be perceived as value received by Torfaen County Borough Council or the other constituent authorities of the former Gwent County Council.
"Most crucial from a strictly legal perspective, it is not clear that MCC has the power to release the covenant now, because by its own terms it may only be released upon payment by Coleg Gwent of 75 percent of the value of the land to be developed.
"To date, no such planning permission has been granted or even applied for.
"Since that is the case, it follows that MCC has no statutory power to release the covenant. And if the purported release of the covenant on the Hill is invalid, so too is the agreement to purchase the land for a new County Hall near Usk, because the release of the restrictive covenant is part and parcel of the same swap transaction."
He says MCC have failed to regard the fact that much of the Hill is outside Abergavenny's town limits, and lies within a conservation area where planning permission for development is very unlikely to be granted.
"This consideration will obviously affect not only the value, but also the possibility, of releasing the restrictive covenant.
"Under these circumstances, we have no way of knowing whether the council tax payers of Monmouthshire are receiving value for money from this property swap, or even whether the council has the power to do what it proposes to do.
"Without knowing what the land near Usk is worth, the sum of £618,000 certainly appears to be very poor value for money for the council tax payer.
"I believe it is incumbent on them to take independent legal advice and obtain property valuations.
"Should they fail to do so, I think it would be entirely legitimate for the many community groups who are concerned about the future of the Hill to take steps to obtain their own legal advice with a view challenging this very questionable deal."
A spokeswoman for MCC said, "Matters in relation to the Hill are being dealt with by our lawyers."





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