Decision

That Cabinet approve the
revised sale price of £XXXXXX for the land at Lowfield Lane,
Balderton as detailed in the report, subject to confirmation from
Nottinghamshire County Council on the Green Adoption at
£XXXXXX; any adjustment in the offer in relation to the Green
Adoption sum to be delegated to the Portfolio Holder for Strategy,
Performance and Finance for decision following consultation with
the Cabinet.
 
Reason for
Decision:
 
In order to ensure that the Council secures the best consideration for the
land which was previously purchased by the Council for residential
redevelopment on the basis that it was both a largely allocated
housing site and was entirely within the Newark Urban Area where
the principle of residential development is acceptable.
 
Options
Considered:
 
The Council could refuse the revised
offer outright and request Arkwood to
proceed to complete the sale on the original terms or seek to
negotiate a higher sale value somewhere between the original and
revised offers. Neither of these options are considered realistic,
deliverable or in the Council’s interest. Arkwood has set out its position that it is
entitled to terminate the contract for sale in the circumstances if
the revised offer is not accepted; Officers consider this position
to be justified as the viability of the development has been
materially affected due to the factors set out in exempt
Appendix A. The revised offer exceeds the
independent valuations obtained and detailed at paragraph 2.6
above, therefore it is not considered necessary to seek to
negotiate a higher sale value.
 
The Policy & Finance Committee report
of 27 January 2022 explored the alternative option of selling the
land on the open market; this option was rejected as it did not
deliver the Council’s strategic aims of both housing
delivery, and financial sustainability relative to the
Council’s Medium Term Financial Plan provided by Arkwood’s involvement. In addition, as the
Council’s wholly owned company, Arkwood does not seek as high a commercial return
as other developers and is therefore able to deliver a more diverse
mix of housing including lower value units which generate lower
returns, but which are much needed in the community. The position
on this alternative option has not changed, in
particular with reference to the independent valuations
referenced at paragraph 2.6 of this report. The Council’s
Acquisitions and Disposals Policy allows for disposal to be
negotiated with a single party such as Arkwood. There is also a risk that by going to the
open market the Council could fail to secure a buyer at all if
Arkwood withdraw interest.
 
The Policy & Finance Committee report
of 29 June 2017 confirmed the land purchase based on use for
strategic residential development, as most of the land was already
allocated for that purpose. The proposal offers the best disposal
value that can reasonably be obtained, together with associated
benefits of delivering much needed housing especially considering
new targets now being introduced by Government, and the Medium-Term
Financial Plan benefits already set out in this report. There are
no alternative uses that would offer a viable and comparable return
which achieves Best Value to the Council as landowner given the
constraints of the site.