Decision details

Cabinet considered a report which sought approval for the Final Business Case prepared by Aurora Properties (Sale) Limited to develop seven executive homes for open market sale on the site of the former Backworth Primary School; and approval in principle to the development of the Annitsford Farm site through Aurora Properties (Sale) Limited for residential purposes; and to receive a further report on this scheme once the Final Business Case had been fully developed.

Cabinet considered the following decision options: to approve the recommendations as set out in paragraph 1.2 of the report, or alternatively, to not approve the recommendations.   

Resolved that (1) the former Backworth Primary School site be declared surplus to requirements and approval be given to proceed with the demolition of the existing building, clearance of the site and to deal with all ancillary matters to ensure clean title;

(2)          the development of the site be approved in line with the Final Business Case attached to the report at Appendix 3, subject to the necessary approvals from the Secretary of State;

(3)          the Head of Commissioning and Asset Management, in consultation with the Elected Mayor, the Head of Law and Governance and the Head of Resources, be authorised to agree minor modifications to the Final Business Case provided it remains within the financial envelope as set out in the report;

(4)          the Authority shall provide all necessary support to Aurora Properties (Sale) Limited, by way of finance, both debt and equity funding, in the most efficient manner, complying at all times with State aid Regulations, all other relevant legal requirements and the Authority’s Constitution and Financial Regulations provided there are no additional financial implications for the Authority which cannot be contained within existing budgets, on such appropriate terms as approved by the Head of Resources, in consultation with the Head of Law and Governance;

(5)          the Head of Commissioning and Asset Management, in consultation with the Elected Mayor, Head of Resources and Head of Law and Governance, be authorised to agree the terms of disposal of the site by private treaty, complete negotiations for the sale of the site to Aurora Properties (Sale) Limited in accordance with all relevant legal requirements, the Authority’s Constitution and Financial Regulations; and

(6)          the development of Annitsford Farm through Aurora Properties (Sale) Limited and / or Aurora Properties (Rental) Limited for residential purposes be approved in principle, dependent on a Final Business Case being approved by Cabinet at a future meeting.

(Reasons for decision: It will support the Mayoral priority as outlined in the Our North Tyneside Plan 2018-2020 that Our Places will be great places to live and offer a good choice of quality housing appropriate to need and deal with the vacant disused former school building to continue to develop places that people like living in and that will attract others to visit or work here. 

The homes built for market sale are commercially viable and would potentially return a profit to Aurora Properties (Sale) Limited after repayment to the Authority of the loan and associated interest. Aurora Properties (Sale) Limited could then determine how this profit is used. 

The increase of the supply of market homes will improve and benefit the area and support the local economy.)