support services for local people.
This is the first property purchased by the authority as part of its Investment Strategy, which was approved by the Corporate Policy and Resources Committee in April 2017.
Since 2012, grant funding to the council from Central Government has reduced by £4m and in response to this, the authority is developing its traded services and investing in property, both within and outside the district.
Coun Jeff Summers, Leader of West Lindsey District Council said: “The acquisition of the Hotel in Keighley is just one way in which we are looking to increase our revenue income to sustain services.
“This, along with a continued drive for efficiencies, will ensure the council has a sound financial position over the next five years and beyond.
“Investments inside and outside the district will generate income and that will be used to support the investment of more than £30m within West Lindsey, with an expected economic impact assessed at being in excess of that.”
The hotel cost £2.35m and is currently funded from internal borrowing, which means it is supported by the council’s own cash.
It will provide a net income, once borrowing is in place, of around £90,000 a year to the council for the period the asset is held by the authority.
As part of the acquisition process, the council follows a 14 point scoring criteria that ensures it considers all issues of the asset, from remaining length of tenancy and a minimum yield through to proximity to the district.
Coun Summers added: “We have held commercial properties for some time, but this is the first outside our district boundaries.
“Due diligence is taken very seriously, from securing the best yield on the acquisition and recognising all responsibilities as a landlord through to understanding the financial stability of the tenant.
“As with all our assets we will continually review them each year - but this is a new step for the council and we are confident this decision will be in the interests of our communities across West Lindsey.”
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