Decision Maker: Transport, Regeneration and Climate Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 28, 2026

Purpose:

Content: 12.1.1 The regeneration of Parkwood requires a new road to be created, and land currently owned by a business is required to facilitate this. Negotiations have taken place with the owner of this business (the Business) who has agreed in principle to sell their land to the Council in return for their relocation to a new site being funded by the Council however, full costs are needed regarding the proposal.     12.1.2 The Committee considered a report of the Executive Director City Futures seeking approval to enter into a legal agreement with the owner of a potential relocation site (the Owner) to take the proposed site off the market for up to two years and to enable them to design a new industrial unit to tender stage and cost the development.     12.2 RESOLVED UNANIMOUSLY: That the Transport, Regeneration & Climate Policy Committee:- 1)    That approval be given to enter into an agreement with the Owner of a potential relocation site and the Business proposed to be relocated on the terms set out below and in Appendix A: A.    With the Owner to: -       Take the relocation site off the market for up to two years and pay holding costs for the site whilst the Council are in negotiations with the Owner about a potential acquisition of the site; -       Pay the Owner’s costs of developing and submitting a planning permission for the building on the relocation site to be in the joint names of the parties -       Pay the Owner’s costs for their design team to work up the designs for the new industrial unit to be built on the relocation site up to full tender stage; and -       Include a provision committing the Owner to the broad principles of the Scheme. B.    With the Business to: -       Pay the Business’ reasonable and proper costs and expenses incurred in working with the Owner on the new building design and in working up detailed costs and obtaining quotations for the relocation of the business into the new industrial unit; and -       Include a provision committing the Business to the broad principles of the Scheme. C.   With both parties to agree that in the period during which the Owner and Business are developing the detailed design of the new industrial unit and calculating full costs, for the Council to work with the Owner and Business to negotiate and agree in principle the legal documentation for the Scheme. 2)    To note that full costs of the relocation including the cost of the land, building, the development and business relocation costs are to be brought back to committees for approval together with the terms of the Scheme.         12.3 Reasons for Decision     12.3.1 The completion of the legal agreement with the Owner and Business will take the identified relocation site off the market for up to two years and enable the design of the new industrial unit to tender stage and submission of a planning permission for the new building.     12.3.2 This will enable a robust budget estimate for the Business relocation costs to be understood which in turn will enable the total budget for the Business relocation to be established and this information can then be brought back to committees.     12.4 Alternatives Considered and Rejected     12.4.1 Alternative Option 1: Compulsory Purchase of the business premises   If the Council do not enter into the legal agreements with the Owner to secure the site, this will no longer be a potential relocation site for the Business and there are no alternative relocation sites in Sheffield.   The purpose of the agreements is also to clarify the costs of the Scheme and if we do not enter into the agreements the Scheme would not progress as we would have no budget certainty. If the Council do not proceed to enter into the legal agreements the only alternative would be to look to acquire the Business by way of a Compulsory Purchase Order (CPO). The costs and timescale for this are uncertain     12.4.2 Alternative Option 2: Do nothing   If the Council are unable to purchase the Business either by relocation or CPO then the proposed new access road cannot proceed.   Not spending the LUF funding at Parkwood would mean foregoing the opportunity to deliver significant capital interventions in Parkwood and the associated economic, environmental and social benefits. No benefits would be delivered along with no contribution to the Council Plan