Issue - meetings

Revenue and Capital Budget 2019/20 - Public Sector Reform Maximisation Disposal

 

 

Meeting: 07/11/2019 - Cabinet (Item 73)

73 Revenue and Capital Budget 2019/20 - Public Sector Reform Maximisation Disposal pdf icon PDF 121 KB

Joint Report of the Head of Corporate Resources and Head of Economic Growth and Housing.

 

Minutes:

The Cabinet considered the joint report of the Head of Corporate Resources and Head of Economic Growth and Housing in relation to the Asset Maximisation Project that sits within the Framework for Change, Public Sector Reform Programme.

 

Decisions Made:        That the Cabinet:

 

(1)                      approved that Legal and Property and Facilities Management       finalise Heads of Terms for the disposal of the Council’s land, Plots B and C at Holgate Thornton – this will result in the developer partner entering into an Option Agreement so that they can commence technical due diligence work and working up a planning application;

 

(2)                     approved that subsequent to the agreement of Heads of Terms     that the Chief Legal and Democratic Officer be granted delegated authority to negotiate sale contracts for the disposal of Plots B and C at Holgate Thornton; and

 

(3)                      approved that when sale contracts and all financial issues have    been resolved, a final report will be submitted to the Cabinet in order that approval can be obtained to conclude the proposed transaction.

 

Reasons for the Decisions:

 

(i)             The disposal will enable a comprehensive scheme to be brought forward.  This will avoid the sterilisation of the Council’s land (Plot C – 3.29 acres) if Orchard Farm was redeveloped in isolation with highways access provided from Holgate Road;

 

(ii)            Disposal will ensure that an off-site highways solution is funded and delivered at Park View, which provides an appropriate access into the Council’s land at Plot A.  This site will be brought forward in future years and does not form part of the proposed land disposal in this report;

 

(iii)          The proposal will pass all costs associated with progressing ground investigations and technical surveys onto the developer – the Council will not have to fund these works.

 

Alternative Options Considered and Rejected:

 

(i)             Option 1 – “Do nothing”: the developer has successfully appealed their planning refusal and indicated that they will exercise their option and develop out their consented scheme, utilising Holgate for construction and residential access.   

 

Risk: by redeveloping Orchard Farm in isolation, Holgate Road would be the main highways access into the site, but there would be insufficient capacity on this road to support the redevelopment of Plot C – this would likely remain as farmland. The impact would be the Council taking the remaining Plots A and B to market (see Option 2).  The Council would incur costs associated with technical surveys, planning and marketing fees and lose the value of Plot C (see Appendix 2). 

 

(ii)            Option 2 – “Council bring forward Plots A and B in isolation”: the Council would appoint consultants to progress desktop surveys (ecology, highways and ground conditions) and prepare a planning brief.  The Council’s remaining land would then be marketed to prospective partners – the deal to be conditional upon planning consent.

 

Risk: The Council would incur costs and staff resource to progress the upfront technical works and due diligence to take the site to market, including the appointment of Agents to market  ...  view the full minutes text for item 73