Purpose

Approval to market

Content

Cabinet received a report which
sought authorisation for the Corporate Director for Resources, in
consultation with the Cabinet Member for Resources, to proceed with
a disposal of the site for residential development as identified in
the Mursley Neighbourhood Plan
(2021-2040).
 
The marketing strategy was to
conduct an open market campaign seeking conditional and
unconditional offers. The objective was to attract a broad range of
bids for the site. These could then be evaluated to determine which
bid best meets the Council’s overall objectives for the site
disposal including financial, and contribution to both the economic
growth prospects and social benefits to the area. The financial
target was the priority, particularly achieving the figure
currently budgeted for in the Council’s current MTFP. The
budget figure continued to be regarded as a realistic
target.
 
Following the marketing period,
a recommendation for the disposal of the site would be presented to
Cabinet for approval.
 
RESOLVED that authority be delegated to the Corporate Director
for Resources, in consultation with the Cabinet Member for
Resources, to:
 

·        
Market the site to achieve the best value under
Section 123 of the Local Government Act 1972.

·        
Appoint a marketing agent to secure bids for the
disposal of the site.

·        
Approve a disposal budget to cover marketing, due
diligence and legal costs as set out in the Confidential
Annex.

·        
Implement the Council’s communication
plan.

·        
Negotiate draft heads of terms with preferred
purchasers.

Reasons for the decision

To achieve the disposal of the
site to meet the anticipated capital receipt as set out in the
Council’s current Medium-Term Financial Plan
(“MTFP”) capital receipts target.
 
The projected capital receipt
substantially exceeded the benefit of the revenue currently
generated from the site, making disposal financially advantageous.
Any residential development on the site would contribute to meeting
local housing targets as set out in the Vale of Aylesbury Local
Plan (2013-2033). 
 
Negotiations conducted with
interested parties would ensure that offers submitted were bona
fide, financially robust and meet the Council’s current
financial requirements both in terms of quantum and
timeline.

Alternative options considered

Do nothing:
The MTFP included a capital
receipt linked to the disposal of the Mursley site. If the site was retained, there would
be a shortfall in capital receipt which would have to be met from
either borrowing or an additional unbudgeted receipt (source to be
identified).
 
Whilst retaining the site would
maintain short-term rental income, both tenancy agreements expire
within a year. Even with 5% annual rental growth, the projected
25-year income remained an insignificant sum when set against the
overall MTFP revenue target.
 
As the site was the sole
residential allocation in the Mursley
Neighbourhood Plan, inaction would delay provision of housing in
this part of the County.
 
This option was therefore not
recommended.
 
Secure planning permission
prior to disposal:
 
An alternative approach that
could be considered was undertaking a pre-app or securing planning
permission prior to marketing the site for disposal.
 
This was not the recommended
option.  The site was already allocated
in the Mursley Neighbourhood Plan which
provided developers with sufficient information to enable them to
bid on the site with confidence. It avoids the Council becoming
involved in the planning process in a landowner capacity, which
incurs time and cost.