Issue - meetings

REPORT OF THE PRINCIPAL ESTATES SURVEYOR

Site GA2 is a strategic housing site in the Local Plan. It is proposed that a new access road to the development will be created from Mendip Way. This report seeks Cabinet approval to the heads of terms for an option agreement to give the developer a right to acquire land owned by the Council to facilitate the access to GA2, in collaboration with the other four owners.

RESOLVED: That Cabinet:

(1)         Approved the Council entering into an option agreement for the sale of the Council owned parcel of land edged red on the plan at Appendix B in accordance with the Heads of Terms attached to the Part 2 report.

(2)         Delegated authority to the Director – Governance in conjunction with the Director – Resources to complete, sign and seal all documents to give effect to the recommendations.

REASON FOR DECISIONS: To ensure that access is available to facilitate the development of GA2, a Strategic Housing site allocated in the Local Plan, which will assist in the delivery of circa 600 new homes and associated facilities including affordable homes. Completion of the sale is also expected to generate a capital receipt.

Audio recording – 1 hour 36 minutes 51 seconds

Councillor Tamsin Thomas, as Executive Member for Enterprise, presented the report entitled ‘Grant of an option agreement for the sale of land to facilitate access to strategic housing site GA2’ and advised that:

·             This report sought Cabinet approval to enter into an Option Agreement for the potential sale of Council owned land to facilitate an access road to the GA2 site allocated under Policy SP18 of the Local Plan.

·             GA2 was a key development site located to the north-east of Great Ashby that would provide 600 homes and community infrastructure to the district.

·             The Strategic Masterplan for the site was approved by Cabinet and ratified by Council in November 2024.

·             Delivery of the site would require access from Mendip Way that would cross five parcels of land owned by five different landowners including the Council.

·             The proposed Option Agreement was part of a wider collaboration with other landowners and would give Picture Estates Ltd the right to acquire the land subject to the approval of planning permission.

·             Loss of open space and play area on the Council owned portion of land would be mitigated by provision on the development.

·             Public consultation would be carried out on the sale of land subject to section 123 of the Local Government Act 1972.

·             The Option Agreement had been structured to ensure the Council would obtain best value through an external valuer and legal oversight. 

·             Upfront legal and professional costs would be initially covered by the developer and deducted from the final proceeds of sale which would be shared equally among the five landowners under a joint agreement.

·             Entering into the Option Agreement would help to unlock a key housing site and associated infrastructure while securing future capital receipt which aligned with the Council priorities of Thriving Communities, Responsible Growth and Sustainability.

·             The portion of Council owned land was edged in red at Appendix B to the report.

The following Members asked questions:

·             Councillor Mick Debenham

·             Councillor Amy Allen

·             Councillor Laura Williams

In response to questions, the Principal Estates Surveyor advised that:

·             The other four landowners had signed their Heads of Terms already.

·             The development value formula was industry standard and based on the ability of landowners to dispose of their land which was a set percentage of the gross development value, minus the costs which would be divided by the five parties.

·             Open space and play area in the development would be larger, higher in quality, near to the existing site but north of the access road and delivered prior to the removal of the current facilities on Council land.

·             The timing of this delivery would be answered in the future by planning officers.

In response to questions, Councillor Tamsin Thomas advised that:

·             All five landowners would receive equal shares from the sale to reflect that each land parcel was essential to the development, and an external valuer would value the land independently at the point of sale to ensure best value for the  ...  view the full minutes text for item 40