Purpose

1.    
To approve the sale of the Robin Hood Car Park and part of the
Bright Hill Car Park on a subject to planning basis to AMA Buchanan
Investments Ltd, as set out in the Heads of Terms dated 12 June
2024.

2.    
To approve the expenditure of approximately £100,000 of the
proceeds of the sale on ground stabilisation works to bring all of the car park
retained by the Council back into operation.

3.    
To provide
approximately £50k capital to cover the costs of the
sale.

4.    
Delegated authority to
the Strategic Director – Finance and Resources to enter into
all relevant contracts in order to complete the
transaction.

Content

Decision:

1.       
To approve the sale, subject to planning permission
being granted, of part of the Bright Hill Car Park and the Robin
Hood car park to AMA Buchanan Investments Ltd, as set out in the
Heads of Terms at (exempt) Appendix 2 to the report submitted to
the Executive;

2.       
To approve the allocation of up to £250,000 of
the capital receipt from the sale to be spent on ground
stabilisation works to bring all the car park retained by the
Council back into operation.

3.       
To approve £50,000 capital expenditure to
cover the Council’s costs associated with the sale, to be
recovered from the Purchaser upon exchange of
contracts.

4.       
To delegate to the Strategic Director of Finance and
Resources, in consultation with the Strategic Director of
Democracy, Law and People and the Portfolio Holder for Finance and
Assets, authority to procure, award and enter
into all relevant contracts relating to the ground
stabilisation works.
Reasons:

1.       
The proposed transaction will deliver a capital
receipt to the Council’s Housing Revenue Account, whilst
enabling the delivery of housing (including a percentage of
affordable).

2.       
The transaction requires the construction of a
retaining wall by the Purchaser, within their ownership, that will
bring 24 car parking spaces back into operation and therefore
deliver an uplift in income to the Council. The proposed investment
of part of the capital receipt into ground stabilisation works will
further increase the number of operational car parking spaces
across the remaining site.
Other options considered and rejected by the
Executive:

1.       
Do nothing - The Council would retain the sites for car parking. The Robin
Hood Car Park & Bright Hill Car Park currently provide c.79
operational car parking spaces. Some spaces are not operational
because of structural issues relating to the terracing of the car
park. Income in 2023/24 was £205,300 and the forecast for
2024/25 is £246,273. The Council is also liable to pay
business rates of c.£55,000 per annum.  This option does not make good use of a Council
asset.

2.       
The income and Capital Value could be increased by
bringing a further 60 spaces back into use at Bright Hill and two
at Robin Hood. However, capital works would need to be undertaken
to bring the site back into full operational use to achieve this
level of income (previously estimated at c.£100k-150k). This
option was previously discounted due to cost.

3.       
Do minimum - The Council could decide to sell the bottom section of Bright
Hill (29 spaces) and Robin Hood car parks (23 spaces), with the
sales condition that the developer implement edge protection
remedials in the middle tier only. This would provide a capital
receipt and 55 car parking spaces producing an estimated income of
£171,456 p.a. This option, however, does not optimise the
income potential of the retained Council car park
asset.

4.       
Do most – The Council could decide to sell the Robin Hood car park
and the entire Bright Hill car park to ABI Ltd. or another
purchaser. A greater capital receipt could be achieved.  The income generated from the car park would cease
upon completion.
Details of any conflict of interest declared by
the Leader or lead councillors and any dispensation
granted:
None