Meeting documents

Specific Policies - Non Operational - Development

Certain sites are designated as ripe for development and dealt with in accordance with this section of the policy.

Such sites will be recorded on the property database.

There is a general presumption against freehold sales and major development sites will normally be dealt with by means of a long lease.

Such long leases may take one of 2 forms depending on the extent to which the Council wishes to retain control of the income flow and the physical characteristics of the completed development. Where control is required the transaction will generally provide for a proportion of the income to come to the Council wheras if this is not the case the transaction will generally generate a capital receipt. The choice of disposal will dictate the level of control that the Council will be able to exert on the finished development.

Major development sites will have the potential to generate significant capital receipts. All such capital receipts will generally be pooled in accordance with current rules. Any proposal to include capital receipts in an overall business or project plan needs to be approved at the outset.

Where a scheme generates a capital receipt all fees and other costs associated with the project will be deducted from such receipt.

Major development projects may generate an income flow however in the justification for the scheme there should also be an assessment of the effect on existing revenue and account taken in the overall decision.

Part or all of the site may be producing some income in the period up to the redevelopment and such Income will generally be reflected in revenue projections. There needs therefore to be an overall assessment of the effects of the scheme.

There are proposals for the establishment of a mechanism for reinvestment of some proceeds in alternative property investments or improvements to the existing stock.

These arrangements have yet to be formalised and will be incorporated when ready.