Issue - meetings

Report of the Executive Director – Corporate Services and Commercial

The Cabinet considered the report of the Executive Director – Regeneration, Economy and Assets requesting approval to enter into a conditional contract for the asset disposal of land and buildings at Pendle Drive, Litherland to Aldi Stores Ltd. Following the disposal, a new food store development would be brought forward pending planning approval. The report indicated that in January 2020, the Cabinet approved the disposal of the first phase of surplus assets to generate capital receipts in support of the Growth and Strategic Investment and Framework for Change Programmes. Officers were provided with the authority to negotiate terms and conditions for each disposal in line with delegated authority set out in the Council’s Asset Disposal Policy. Brooklea House, Pendle House, and Pendle Drive were three unoccupied buildings located on the site known as Pendle Drive, Litherland (“Pendle Drive”). The site was in the first phase of the disposal programme. In 2019, the Council was approached by a food store operator to acquire part of the site, however the operator withdrew from the deal in June 2023. Since that date a separate approach had been made by Aldi Stores Ltd in January 2024 to acquire part of the site for a food store scheme. Principle Heads of Terms had been agreed subject to Council approval and intrusive site investigations were in progress as part of the feasibility work to inform a planning application.

The following exempt appendices were attached to the report:

·       Appendix 1 – Heads of Terms for Freehold Disposal

·       Appendix 2 – Site Plan – Land to be acquired by Aldi Stores Ltd

Decisions Made:

That

(1)           the sale of the Council’s freehold interest in land at Pendle Drive (shown edged red on the plan within Appendix 2) to Aldi Stores Ltd on the basis of the Heads of Terms detailed within Appendix 1 of the report, be approved;

(2)           the deduction of up to 4% of the eventual capital receipt to cover the professional fees and incidental costs of disposal as set out in Capital Accounting Regulations, be approved;

(3)           the Chief Legal and Democratic Officer be authorised to complete the necessary legal formalities in relation to the completion of land sale contracts;

(4)           it be noted that demolition of all buildings at Pendle Drive (including those on the land to be retained by the Council) will be demolished under licence agreement in autumn 2024; and

(5)           it be noted that officers in Property Services and Housing and Investment Services are exploring options for the disposal of the remainder of land (c.1.14acres) in the Council’s ownership for housing development. A proposal will be brought forward to Members in line with delegations for future consideration.

Reasons for the Decisions:

The disposal would maximise the land receipt to support the Growth and Strategic Investment Programme. Alternative use value (residential) would not generate a capital receipt of a comparable level. The opportunity cost would be the loss of a capital receipt as currently projected in the disposal programme.

The disposal of  ...  view the full minutes text for item 32