Agenda item

Report from the Executive Director of Corporate Services.

Recommendations:

That Cabinet

1.    Approve the disposal of the Council’s freehold interest in land at Worrygoose Lane, Whiston, as per the attached plan in Appendix 1.

2.    Delegate authority to the Service Director Property and Facilities Services to carry out and complete all necessary and related activities to give effect to the disposal, including completion of legal documentation and receipt of all monies due to the Council, net of any fees or charges due.

Consideration was given to the report which sought approval for the disposal of the Council’s freehold interest in land at Worrygoose Lane, Whiston and to delegate authority to the Service Director Property and Facilities Services to complete all matters necessary to give effect to that disposal.

The land, which was surplus to operational requirements, was required to provide lawful access to a residential site allocated within the Council’s adopted Local Plan and therefore represented a ransom strip, without control of which the wider site could not be developed. Following engagement with the adjoining landowners and the developer, the Council obtained independent valuation advice from the District Valuer to establish the value of the Council’s land as a ransom strip. This valuation informed subsequent negotiations and provided assurance that the terms ultimately agreed reflected market value, taking account of relevant abnormal development costs.

During the course of negotiations, a number of offers were made by the developer and adjoining landowners. At one stage, all offers were withdrawn while alternative options for accessing the site were explored, resulting in a period of limited engagement with the Council. At a later stage, a change in developer and a refreshed commercial approach led to negotiations being re-opened and ultimately concluding in a final agreed offer of £4.5m for the Council’s land.

An Option Agreement relating to the disposal had already been entered into and exercised. This report therefore sought approval to regularise the governance position and to determine whether the disposal should now proceed. The decision was in relation to the disposal of a Council owned asset, taken in accordance with the Council’s property and financial governance arrangements.

Notice under the Option Agreement was served on 21 April requiring completion by 6 May, which has since passed. While this position had contractual implications for the Council, this did not diminish or fetter Cabinet’s ability to determine whether the disposal should proceed. Cabinet were being asked to consider and determine the disposal notwithstanding the contractual position. Should Cabinet resolve not to approve the disposal, the Council would be required to address and manage the resulting legal and financial implications.  These were set out in Sections 5 and 6 of the report with additional information provided in Exempt Appendix 2.

The disposal enabled the realisation of value from a Council-owned asset and also enabled delivery of a wider residential development, including affordable housing, as already identified within the Council’s Local Plan and wider objectives to deliver new residential and affordable residential across the Borough. 

During the meeting, the Monitoring Officer confirmed that the decision before Cabinet related only to the sale of the land, and not to any related planning matters.

Resolved:

That Cabinet 

1.    Approve the disposal of the Council’s freehold interest in land at Worrygoose Lane, Whiston, as per the attached plan in Appendix 1. 

2.    Delegate authority to the Service Director Property and Facilities Services to carry out and complete all necessary and related activities to give effect to the disposal, including completion of legal documentation and receipt of all monies due to the Council, net of any fees or charges due.