After 17 years of controversy, a Norfolk council's ownership of a 257-acre hotel and golf club could soon be coming to an end.
But will it turn out to be an investment that is above par?
Breckland Council said it expects to make a "substantial profit" overall from the sale of Barnham Broom Golf Club - which is being offered to the current tenant.
It is the second attempt to sell off the property, after a failed bid last year.
Members of the council will vote later this week on whether to go ahead with the transaction, which has been recommended for approval by officers.
However, it admits the sale price is lower than the £7m it paid for the asset in 2006.
A council spokesman said: "If this sale to the tenant is completed, the final sale price will be less than the total capital invested.
"However, the asset was acquired to secure regular rental income and not capital growth, so when we balance our costs against the income we’ve received over the last 17 years, we’ll have made a substantial profit from this investment.
"Plus, the money we’ve made will be more than if it had been invested in a high street bank over the same period.”
When questioned at a recent full council meeting, leader Sam Chapman-Allen said: "I am still confident this council will have made a profit from this asset."
GREEN GOLD?
Situated a few miles away from Breckland Council's offices in Dereham, the luxury hotel and golf club has been the focal point of a political row for several years.
There have been fears residents in the district will be left out of pocket by the sale after reports suggested it would be sold at a significantly lower price than first paid.
It led to critics calling it a "risky investment" who feared the council were being forced to “play monopoly” with public money to generate income because of cuts from central government.
Council bosses have been eager to remain tight-lipped about the sale to protect its commercial interests.
It even fought an appeal against a ruling from the Information Commissioner’s Office [ICO], which has said that it should publish the minutes of private discussions about the club.
This cost the taxpayer £15,000 in legal fees.
Although it has said the golf club has been part of a property portfolio that generates more than £3m in income each year.
FAIR WAY FORWARD
While the council owns the land and buildings, the property is leased as a business and is managed by a private company.
In line with the 2006 contract, current tenants Barnham Broom have the first opportunity to buy the premises.
If they refuse, it will go back on the open market for sale to third parties although it seems it is likely they will accept the offer.
As the sale concerns only the freehold of the property, the operational business will be unaffected by any deal.
A spokesperson for Barnham Broom commented: “After leasing the property from the Council since 2006, we are looking forward to completing a buy-back of the freehold property interest early next year.
"The buy-back will enable us to reinvest and expand the business as the leading hotel, spa and golf destination business in East Anglia”.
NEXT STEPS
Councillors will meet on Thursday to discuss the sale of the golf club.
A scrutiny meeting has been called in the morning, where councillors will have the chance to debate the matter.
Following this in the afternoon, cabinet members will make the final decision, where it is expected that the Conservative-led council will agree to the sale.
Council investments have come under intense scrutiny in recent weeks amid a growing number of authorities facing bankruptcy.
A Breckland spokesman added: “Having received rent from this property investment for approaching two decades and, with a significant further capital receipt expected to be raised from a sale, we fully expect to have made a profit on this investment.
"This means it has been a good deal for the public purse and the residents we serve. A sale of the property presents the council with an opportunity to redirect that money into new initiatives which support the council’s evolving ambitions for the district.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here