Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 23, 2025

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.