Issue - meetings

Report of the Executive Director of Corporate Resources and Customer Services

Further to Minute No. 73 of the meeting held on 7 November 2019, the Cabinet considered the report of the Assistant Director of Place (Economic Growth and Housing) which indicated that Asset Maximisation s a project within the Council’s Framework for Change, Public Sector Reform programme and that as part of this project, the Council’s assets will be defined as being required for operational purposes, having heritage value, being required for the economic growth programme or being available for disposal. The first phase of this review was completed in 2019. The site known as Land at Holgate, Thornton was identified as being not operational, surplus to requirements and therefore available for disposal.

On 7 November 2019, the Cabinet approved that Legal Services and Property and Facilities Management finalise an agreement for the disposal of the Council’s land known as Plots B and C, Holgate, Thornton and in 2020 an option agreement was entered into with the developer and purchaser, Forth Homes. This has enabled Forth Homes to commence technical due diligence work to inform a planning application for 206 dwellings on the site that was approved in June 2022.

As part of the negotiated deal with Forth Homes, the developer was required to bring on board a strategic partner. Forth Homes has agreed terms for a sale of the Council’s land to a larger housebuilder, Castle Green Homes (a management buy-out of Housebuilder Macbryde Homes, backed by Steve Morgan CBE, founder and former chairman of Redrow). The deal agreed between Forth Homes and Castle Green Homes effectively triggered an overage payment for the Council’s land, and therefore changed some conditions of the land sale previously reported to Cabinet.

The Option Agreement sets out the gross land value and allows deductions for abnormal development costs, Section 106 contributions (including affordable housing contribution required by the Council), external highway works and planning gain costs.

The Cabinet previously approved that Officers would be required to report back to Members when sale contracts and all financial issues were resolved. This final report now seeks Cabinet approval to conclude the land sale transaction for Plots B and C at Holgate, Thornton.

Decision Made: That:

(1)      as per the terms of the Option Agreement, approval be given for Forth Homes to appoint Castle Green Homes as their Nominated Strategic Partner for the reasons detailed within 3.4 of the report;

(2)      the Heads of Terms for the long lease of land on the north side of Southport Old Road, Thornton as detailed within Appendix 4 of the report be approved;

(3)      approval be given for the Chief Legal and Democratic Officer to complete the long lease and land sale agreements, to secure the capital receipt as presented at Appendix A of the report;

(4)      it be noted that the work undertaken by Property and Facilities Management to verify abnormal costs deductions and the agreed disposal price as set out in Appendix 1 of the report meets best consideration requirements in accordance with Section 123 of the Local  ...  view the full minutes text for item 75