Content

Decision
 
RESOLVED that
Cabinet:

1.    
Approved the sale
of the land identified in Appendix A for residential development,
for the price and terms set out in 2.1-2.3, to the purchaser
identified in 3.1, and subject to the purchaser securing an
appropriate planning consent.

2.    
Authorised the
Head of Asset Management & Engineering Services and Chief
Finance Officer in consultation with the Portfolio Holders for
Asset Management, Finance & Budget and Housing & Housing
Development to agree detailed sale terms.

3.    
Authorised the
Council’s Legal Services to prepare and complete all
necessary documentation to give effect to the sale including
settling the detailed terms of the overage agreement and associated
legal documents.
 
Reasons for
decision
The proposed sale of the former Directors Arms
site secured:

1.    
Best Consideration: The offer of
£2.35m capital receipt was consistent with independent
valuation advice and represented best consideration reasonably
obtainable under the Local Government Act 1972, s123.

2.    
Private Housing Delivery: The
scheme would deliver 24 private units

3.    
Affordable Housing Delivery: The
scheme would deliver 13 Affordable units of which 4 will be social
rent.

4.    
Financial Prudence: Disposal
through open market sale avoided the financial risk of Council-led
development, securing a guaranteed return without exposure to build
cost inflation, planning risk or sales risk.

5.    
Corporate Objectives: The
transaction supported the Council’s Corporate Plan by making
effective use of assets, generating capital receipts to support the
capital programme, and contributing towards meeting local housing
needs.

6.    
Deliverability: it was a proven
developer with experience of delivering similar schemes locally,
giving confidence in scheme delivery and receipt
realisation.
 
Alternative Options
Considered
 

1.    
Retain the site for Council-led
development: This option would have required the Council to assume
all development risk, including securing planning, funding and
delivering the scheme. Independent advice had indicated that this
would have exposed the Council to significant financial and market
risks.

2.    
Market disposal to alternative
bidders: The Council had tested the market and the offer was
considered to represent best overall value.

3.    
Other offers were received for
alternative uses which did not aligned with the Council’s
Housing Strategy and were discounted.