To seek approval for the Final Business Cases prepared by Aurora Properties (Sale) Limited to develop two further sites in North Tyneside that will support the ongoing regeneration aims of the Council.
Minutes:
Cabinet considered a report seeking approval for the Final Business Cases prepared by Aurora Properties (Sale) Limited to develop two further sites in North Tyneside that would support the ongoing regeneration aims of the Authority.
The first scheme was the development of 5 homes at number 11/12 Northumberland Square in the centre of North Shields.
The second scheme related to the re-development of the Authority owned site of the former Tynemouth Library site to provide a new, modern library facility and six new apartments for sale on Tynemouth Front Street. The new Library would include a ‘Changing Places’ WC/changing room and subject to commercial negotiations, it was the intention that the new library would be co-located with a Building Society providing a financial services presence on Front Street and extending the current opening hours of the library.
Both schemes would directly contribute to towards the Authority’s priorities within the ‘Our North Tyneside’ Council Plan to create great places to live and provide more quality housing.
The Final Business Case for each scheme demonstrated that both schemes would be financially viable for Aurora Properties (Sale) Limited and would also together provide a potential financial benefit to the Authority.
Cabinet considered the following decision options: to accept the recommendations as set out in paragraph 1.2 of the report, or alternatively, to not approve the recommendations.
Resolved that (1) the Tynemouth Library and 11/12 Northumberland Square sites be declared surplus to the Authority’s asset requirements, and Officers be authorised to procure the demolition of the existing buildings, clearance and remediation of the Tynemouth Library site and deal with all ancillary matters to ensure the Site is suitable for development;
(2) the sale of the sites at 11/12 Northumberland Square and Tynemouth Library
to Aurora Sales to reflect the Final Business Cases attached to the report as Appendices 3 and 4 be approved;
(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 Cases provided they remain 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 complete negotiations for the sale of the Sites to Aurora Sales and to agree the final terms of disposal of the Sites by private treaty, in accordance with all relevant legal requirements, the Authority’s Constitution and Financial Regulations;
(6) the Head of Commissioning and Asset Management be authorised to deal with all ancillary matters arising that are consistent with the preceding resolutions; and
(7) negotiations with the Building Society identified in the report around the terms and conditions of the lease for the shared library facility be undertaken in line with the existing Officer Delegation Scheme allowing, if subsequently agreed, a Licence for Occupation of Part on terms.
(Reasons for decision: It will support the Mayoral aim and priority as outlined in the 2020-2024 Our North Tyneside Plan that Our Places will be great places to live and offer a good choice of quality housing appropriate to local need and redevelop a vacant brownfield site.
It will support the policy aim to continue to develop places to provide suitable
accommodation for residents of the Borough and will attract visitors and /or employees / prospective employees.
Aurora Sales believes the Project is commercially viable.
The new housing will increase the supply of market homes, and will improve / benefit the
area and support / boost the local economy.
Working with Northern PowerGrid to replace and upgrade the substation will improve the
current infrastructure servicing the Tynemouth area.)