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The Assistant Chief Executive submitted a report a copy of which had been circulated to each Member. Patrick O’Sullivan, North Colchester Project Manager, attended and presented the report. It was proposed that the site be disposed of for the development of a mixed uses site. Part of the capital receipt would be used for the development of affordable housing, possibly on another site.
Members of the Committee welcomed the proposal which would generate a significant receipt for the Council as well as lead to the development of affordable housing. It was noted that the site was not yet in Council ownership, but the Committee received reassurance from officers that this did not prevent the Committee from taking decisions on the disposal of the site. The Committee commended the foresight of Council officers in recognising the potential value of the site and arranging for the transfer of site to the Council.
RESOLVED that:-
(a)
The Severalls Mixed Use Site be disposed of
(b)
The proposal to dispose of the site for the development for a mixed use retail and residential development as detailed in the report on Part B of the agenda be noted
(c)
It be noted that part of the capital receipt for this site is proposed to be earmarked for investment into affordable housing, with the remainder being allocated into the Revolving Investment Fund as detailed in the report on Part B of the agenda.
(d)
Authority for the negotiation of the Head of Terms and conclusion of legal documents be delegated to the Strategic Director, Commercial and Place.
REASONS
The RIF was established to recycle capital receipts into projects that could deliver against a number of Council objectives. The RIF can be used to support wider economic growth targets and deliver infrastructure supporting regeneration but its principle function is to recycle capital funds from the sale of assets for investment into income producing opportunities which can in turn support provision of frontline Council services. The sale of the Severalls Mixed Use site will provide a capital receipt which can be then used to invest in other RIF projects.
ALTERNATIVE OPTIONS
The Council could redevelop the site itself and then either sell it or retain it as a long term asset. Development appraisals for various different types of development have been undertaken and while a profitable scheme could be produced the residual value of these is significantly less than the offers that have been received for the site.