Issue - meetings

Report of the Executive Director of Corporate Resources and Customer Services.

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer services in relation to the disposal of three surplus assets that will form phase 2 of Sandway Homes development programme.

Decisions Made:    That:

(1)           the Cabinet approved the disposal of the following Council sites to Sandway Homes Limited:

(a)           Isle of Wight Farm, Southport – on condition that technical due diligence and a planning application is progressed in the 2021/22 financial year.

a)             Bootle High School, Bootle – on condition that technical due diligence and a planning application is progressed within the 2021/22 financial year.

b)             Foul Lane, Southport – on condition that technical due diligence and a planning application is progressed in the 2021/22 financial year.

(2)           further report(s) on the detailed terms and conditions agreed for the disposal of the sites be submitted to the appropriate Cabinet Member or Cabinet for approval in accordance with the Asset Disposal Policy; and

(3)           Sandway Homes Limited be permitted to incur expenditure of £0.200m in the development of the Phase 2 Business Plan and that this be included in the previously approved debt facility for Phase 1, be approved.

Reasons for the Decisions:

Sandway Homes is a key delivery vehicle to secure capital receipts to support the Council’s Framework for Change Programme. Cabinet previously approved on 9 January 2020 (Asset Maximisation Report) that the Isle of Wight Farm and Bootle High School be identified as being surplus to operational requirements and available for disposal. Officers have assessed other prospective sites and with the addition of Foul Lane, Sandway Homes will have three sites to form Phase 2 of their build programme. This will allow the Development Company to continue to provide new residential dwellings, including affordable housing, and generate capital receipts plus a share of profit (revenue return) to the Council

The Asset Disposal Policy details the route for approval dependent on the level of capital receipt agreed between the parties

The request for expenditure of £0.200m for Sandway Homes Limited enables the completion of the Phase 2 Business Plan.

Alternative Options Considered and Rejected:

Option 1 – “alternative sites are offered to Sandway Homes”. 

Risk: current Council sites declared surplus are generally smaller sites or have associated timing issues, which means that they cannot be brought forward as quick. The impact is that the Council would receive a lower land receipt, lesser share of the development profit, and ultimately fewer affordable houses delivered in the Borough.

Option 2 – “the Company takes forward a smaller number of sites” in Phase 2.

Risk: the financial return to the Council will be reduced accordingly. There may be a requirement for Sandway Homes to retain a greater amount of the development profit produced by the remaining sites so that sufficient funding is available to enable technical due diligence and planning applications can be progressed.