Decision details

The Entry Hill Depot Site does not offer an opportunity to develop for Residential Development in the short to medium term and therefore could be offered for sale or lease for employment use only in accordance with the local plan.
The proposal to delegate to the Head of Corporate Estate in consultation with the Head of Finance and Head of Legal Services the decision to sell to a single proposed purchaser subject to valuation by a third party without prior marketing of the site, the costs of which will be borne by the proposed purchaser whether the matter proceeds to completion or not. The rationale being that there are no alternative uses of higher value to which this land could be developed in the medium to long term, owing mostly to planning restrictions (albeit provisions to recover overage from the purchaser or their successors in title will be included in any sale contract). It is intended that the proposed purchaser will support the local economic growth through development for employment uses resulting in an estimated additional GVA of £1.4 million pa.

(1)  To determine that the Entry Hill Depot site be disposed of by lease or sale on the basis that it is limited to employment use only.

(2)  To delegate to the Head of Corporate Estate in consultation with the Section 151 Officer the power to enter into a direct lease and/or sale to a local employer subject to:

(a)  a Red Book RICS valuation

(b)  Overage provisions

NOTE: This decision was called-in on 20^th April 2023 by 16 councillors.  The call-in request was verified by the Chief Executive and the Monitoring Officer.

The call-in will be heard by the Corporate PDS Panel on 11^th July 2023.

Biodiversity – One of the key planks of the Planning Policy update is net biodiversity gain.  The main points in consideration of this are detailed in Section 8 of the SMD report.

The planning policy consideration is the main obstacle to a residential or mixed-use development.  Second is contamination/made up ground and third the difficulty of showing biodiversity net gain.  These points are explored in greater depth in sections 3 and 8 of the SMD report.

The development of the subject site for employment/industrial use is far more sustainable for all reasoning detailed in the report, rather than the consideration of a potential, although unlikely, residential use.  However, the transfer will be subject to overage provisions in the event that residential use ever became viable.

Earlier in the year the Council’s intention was to secure a short-term revenue stream with a capital receipt in four years’ time.  If this is still the case, the Council can continue to do this.  If, however, the Council’s intention has changed this could be re-visited.  The Council could either put the property up for sale on the open market or alternatively, given the interest from the proposed purchaser, get an up-to-date independent valuation and sell now.  The benefits to the latter method of disposal are that the proposed purchaser is familiar with the site and its conditions.  They are less likely to negotiate at the last minute and although not guaranteed, the Council is more likely to receive the capital receipt this financial year.

If the property is placed on the open market, it is unlikely that a capital receipt will be achieved this financial year, given the site conditions, and planning complexities.  The recommendation, therefore, is to proceed as per the recommendation detailed in the SMD report.

The principle of the best consideration being achieved is safeguarded by the Red Book (Fair i.e., Open Market Value) Valuation request being secured, and its outcome being agreed as the Purchase Price subject to clawback provisions as again, detailed in the report.