Decision details

The Council are looking to buy back two development sites from Brick by Brick (BBB). These were both originally transferred to BBB from the HRA but have not been developed by BBB but they have done a variety of works to obtain planning consent and have cleared the site of the former garage blocks.

As part of the original transfers the Council had a buy back option if the sites were not developed – the value to be paid being the equivalent to the amount incurred by BBB to secure planning or market value. Both sites have been assessed internally and a figure agreed of £500k for Malton House and £900k for Regina Road as representing a reasonable market value and both figures are less than the expenditure by BBB to secure planning and clear the site and therefore the values are considered fair and reasonable.

The two sites are being acquired to support the Regina Road scheme but both are capable of being developed without the wider proposals if necessary

RESOLVED:

For the reasons set out in the report Corporate Director of Resources is recommended, in consultation with the Monitoring Officer and the Cabinet Member for Finance:

1.1.         To approve that the Housing Revenue Account (HRA) acquires the land at Regina Road for a total sum of £0.900m by allowing the Council to exercise the Option agreement to buy back the site.

1.2.         To approve that the Housing Revenue Account (HRA) acquires the land at Malton House for a total sum of £0.500m by allowing the Council to exercise the Option agreement to buy back the site.

1.3.         To note that the Varied Option Agreements within Appendix A1 and A2 agreeing the purchase values between the Council and Brick by Brick for each site.

1.4.         To note Appendix B justifying that the purchase values as advised by Council’s internal valuation.

1.5.         To note that the Council, as the original landowner, is due payments back from BBB for the land values on Malton House for £0.160m as stipulated within the Option agreements and referred to as the Initial Price. These land payments will be resolved as part of the final assets and liabilities review work for winding down BBB. The land value for Regina Road was determined as nil due to significant pre-development work that was needed to make the land viable for housing.

1.6.         Note that the date to exercise Option agreements is 17th March and it is unlikely that the Council will meet this deadline and thus has an agreement with BBB to extend this date by a reasonable timeline.

As set out in Part A of report.

As set out in Part A of report.

None