Purpose

To appraise the Cabinet Member
and seek approval to terms for a short term Building Lease and
subsequent long leasehold disposal of plots F,G &H, Southport
Business Park, Wight Moss Way, Southport.

Decision

Decision(s): That
 

(1)

the Heads of Terms for a
short-term Building Lease and subsequent long leasehold disposal of
999 years to EFT Group Limited, as detailed within Appendix 2 of
this report, be approved; and
 

(2)

the Chief Democratic and Legal Services
Officer be authorised to complete the necessary legal
documentation.
 

Reason(s) for the
Decision(s):
 
 
Allocated and available employment land at
Southport Business Park has remained vacant since the demise of
support previously available to aid delivery through the European
Union (Regional Development Fund). The site suffers significantly
as the result of very poor ground conditions which render
development largely unviable based on escalating development costs
and achievable rental values. An independent land residual
appraisal undertaken by Fitton Estates confirmed a negative
residual value for the land. In addition, Property Services
undertook its own independent land residual appraisal and arrived
at the same conclusion.
 
The developer and purchaser (EFT Group Ltd)
made a pre application submission through the planning process for
the proposed development of Plots F,G, H
and this received a favourable response.  Financial Assistance may be made available subject
to the appropriate due diligence to help address viability through
available Section 106 monies ring fenced to assist in the delivery
of employment floor space at Southport Business Park.
 
Whilst it is recognised that the disposal will
not generate a capital receipt due to the lack of viability, the
development will generate new jobs, provide business rate income
and support and encourage further development across the remaining
available plots at Southport Business Park. These outcomes are
consistent with the objectives of Sefton Economic Strategy and
ambitions and objectives of the Southport Town Deal.
 
Alternative Options
Considered and Rejected
 
If the Council do not enter into this lease
and allow the land to remain in its current vacant state, this
would not assist in meeting the wider objectives linked to economic
growth, job creation and skills development. The land in its
current state is also a liability from a maintenance perspective
and is detrimental to the wider employment site and existing
occupiers.