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RESOLVED: that Cabinet
authorised the Assistant Director Assets & Environment in
consultation with the Finance Portfolio Holder to agree terms for
the disposal of land off the A45 London Road, Daventry and complete
any documentation required to implement this, in accordance with
the constitution and the following:
a)   
A hybrid promotion agreement with GC No. 19 Limited
or another company associated with Godwin Developments should be
entered into to promote and facilitate the disposal of the Site via
the open market.
b)   
Should the agreement not be achieved for any reason
or elapse, disposal would be directly via the open
market.
c)   
The consideration should not be less than the
pro-rata minimum purchase price or such a figure that reasonably
represents market value.
 
REASONS RESOLVED:
·        
The land is surplus to requirements and was being
held with longer term development aspirations in mind. The site has
been actively marketed jointly with the other associated
landowners. The disposal would fulfil the objectives of good estate
management.
·        
The redevelopment of the Site would see a key
strategic area of Daventry developed which would align with the
proposed West Northamptonshire Spatial Vision, Strategic Plan
Objective 13: Economic Advantage.
·        
To generate a capital receipt for the Council in the
short term, which would be difficult to obtain if it were not
included as part of the larger development opportunity.
·        
To comply with the obligations on the Council to
obtain the best consideration reasonably obtainable in a freehold
land disposal.
·        
As a hybrid promotion agreement, all costs
associated with promotion of the site, such as planning fees,
agents, and legal fees are paid by the promoter.
·        
The Council has a degree of security knowing that it
can expect a minimum consideration when the site is disposed and
therefore there is a minimum degree of risk to the local
authority.
 
ALTERNATIVE ACTIONS:
The Council has a number of
choices:
(1) Do nothing at this time
– At present the Council’s land offers little benefit
either from a financial or economic perspective to the Council. It
is currently held on a tenancy at will to an adjoining landowner
(one of the other landowners in the consortium) at a peppercorn fee
for storage. Therefore, its future even for this use is limited
should development proceed.
 
(2) Agree to the proposed
promotion agreement – If the Council’s interest was
included as part of the larger development, its disposal would
assist in the realisation of a capital receipt likely to be more
than what could be realised if the land was disposed in isolation.
This is likely to remain the case even if the proposed hybrid
promotion agreement was not to deliver a disposal. In addition to
obtaining a significant capital receipt the inclusion of the
Council’s land would assist and facilitate the development of
one of strategic sites in area which would align with one of the
objectives of the Council as set out in the Settlements &
Countryside Local Plan. The development would also result in inward
investment, job creation and economic growth.
 
(3) Seek a separate disposal
– For the reasons given above, this is considered unlikely to
maximise financial returns. It is also likely to frustrate the
development of this allocated development site, contrary to the
Council’s planning policy intentions.
 
None of the options has a
material adverse impact on people with different protected
characteristics or otherwise adversely affects the Council’s
equality duties. It is therefore concluded that proceeding with a
disposal alongside the landowner consortium (option 2) represents
the best option for the Council.