THE Tavistock and District Chamber of Commerce has questioned a strategy by West Devon Borough Council to borrow money so it can purchase commercial properties to create new revenue streams.

The idea behind the scheme, which has been approved by borough councillors, is that following the purchase of such properties and after costs are deducted, the surplus generated would be used to help fund services within the borough.

The borrowed money would be used to buy commercial properties with established tenants in place, with the intention of immediately generating a revenue stream for the council through the surplus following borrowing, administration and maintenance costs.

At their latest meeting, Chamber chairman Mike Harper told members he had met with Cllr Bob Baldwin, who is the lead on the project.

Mike said: ‘I am concerned that money will be invested up country buying small parts of shopping centres and not down here.

‘Surely the council should invest any money it borrows in Tavistock, Okehampton and the borough. It should consider a high-end proposal for modern office space on land allocated in the Core Strategy, for our businesses to expand.’

Cllr Philip Sanders, leader of West Devon Borough Council, said: ‘In order to create a balanced portfolio, existing properties already let to tenants on long leases, located across the country, are being sought. These will deliver income to the council from day one.

‘A new high end office development as mentioned by the chamber is a worthy aim. However, in order to do this, the council would need to find suitable land, develop a proposal, apply for planning permission, build and then let such a building, while financing such an initiative from day one.

‘This type of activity will not deliver income in the timescales required to meet the council’s predicted budget gap and carries considerable risk throughout that process, with no guarantee that the finished building would be let in its entirety.

‘Demand for office space in the town needs to be quantified in order to pursue such an initiative and the council would encourage the Chamber to evidence such a need to help achieve its aims.

‘In the meantime, the council has some office space available within the town and would be keen to hear from any prospective tenants.

‘The council’s adopted commercial property strategy sets out the reasons why property located outside of the borough will be favoured for acquisition— the main reason being that the council already owns a significant property portfolio within West Devon.’