To receive a report seeking approval to declare the Site surplus to the Authority’s requirements and the appointment of Bidder 5 as the Authority’s Preferred Development Partner.
Minutes:
Cabinet received a report setting out details of a brownfield development site that had been identified with the potential to deliver up to 230 new homes once it had undergone remediation; and seeking approval to declare the Site surplus to the Authority’s requirements. The site comprised the former Complete Growth Nursery, Howdon Landfill Site and part of Howdon Park (shown by dark outline on the plan at Appendix 1).
This remediation and development opportunity was advertised on the open market following clearance being given by the Strategic Property Group in. Interested parties were asked to submit greenfield offers for the site by the closing date of 28 September, taking account of a requirement for 25% of the homes to be delivered as affordable homes. 7 bids were received.
These bids were scored on a combination of the value of offer made and on the bidders past experience of undertaking major remediation schemes in advance of development. Cabinet will note from the scoring matrix at Appendix 2 that bidder 5 scored the highest at 95%. This bid was from a volume national house builder with good experience of undertaking major remediation schemes in advance of development. To assist with the remediation of the site and to make it viable for development, it was anticipated that it would be possible to access up to £5m of Brownfield Funding that had been secured in principle from the North of Tyne Combined Authority.
By securing the remediation and development of this site the new homes would assist in the Authority’s ability to deliver the new homes target as set out in the Local Plan, and its own affordable homes target.
Cabinet considered the following decision options: to either approve the recommendations as set out in section 1.2 of the report, or alternatively, to not agree the recommendations.
Resolved that (1) the Site be declared surplus to the Authority’s requirements and the appointment of Bidder 5 as the Authority’s Preferred Development Partner, be agreed;
(2) the Director of Resources be authorised to agree any reasonable revisions to the terms of the Development Agreement and sale contract arrangements and the final net sale price of the Site in consultation with the Elected Mayor and the Head of Law;
(3) the Head of Law be authorised to negotiate a Development Agreement and phased sale contract, together with associated documents and complete them in accordance with all relevant legal requirements, the Authority’s Constitution and Financial Regulations;
(4) the Head of Law be authorised to agree the arrangements for accessing the Brownfield Funding from the North of Tyne Combined Authority and to complete appropriate legal documentation with the Bidder 5, in order for them utilise the funding to remediate the site in advance of development. This will be in accordance with all relevant legal requirements, the Authority’s Constitution and Financial Regulations and also Subsidy Control Rules, and;
(5) subject to resolution (4), the Director of Resources in consultation with the Elected Mayor and the Head of Law be authorised to take any further steps necessary to implement the decision of Cabinet.
(Reasons for decision. It is considered to be the most advantageous way forward to assist in the Authority’s ability to deliver the new homes target set out in the Local Plan and the Authority’s own affordable homes target.)