Agenda item

Westgate Chambers Redevelopment - Removal of the Developer Overage Provisions

Report from the Strategic Director of Regeneration and Environment.

 

Recommendations:

 

  1. That Cabinet approve the removal of the developer overage provisions that were included in the original sale transfer of the Westgate Chambers redevelopment site.

 

  1. That the Strategic Director (Regeneration and Environment) is then authorised to instruct Legal Services to formally remove the restrictions from the title documentation and the transfer for sale.

 

Minutes:

Consideration was given to the report which sought approval for the removal of the developer overage provisions on the Westgate Chambers redevelopment. Westgate Chambers was a key redevelopment site in the Town Centre and was previously under the ownership of the Council. It was sold to the current developer in 2016 for a reduced value as there were serious viability issues in delivering any scheme on site and the Council wanted to support wider regeneration in the area.

 

Included in the sale was a number of overage provisions to provide extra security to the Council in the event that there was a significant upturn in the market and scheme viability was no longer an issue. However, the developer was having difficulties securing further funding against the part-completed scheme as no lending institutions were prepared to release any funds against schemes where overage provisions were in place.

 

The developer had approached the Council and asked if they would consider the removal of the overage provisions to allow for funding to be secured and the full redevelopment of the site to be completed.

 

All relevant financial information had been made available to the Cabinet in Appendix 2 and a site plan was attached at Appendix 1.

 

Resolved:

 

1.    That Cabinet approve the removal of the developer overage provisions that were included in the original site transfer of the Westgate Chambers redevelopment site.

 

2.    That the Strategic Director (Regeneration and Environment) be authorised to instruct Legal Services to formally remove the restrictions from the title documentation and the transfer for sale.

Supporting documents: