Content

12.1.1

The regeneration of Parkwood requires a new
road to be created, and land currently owned by a business is
required to facilitate this. Negotiations have taken place with the
owner of this business (the Business) who has agreed in principle
to sell their land to the Council in return for their relocation to
a new site being funded by the Council however, full costs are
needed regarding the proposal.

 

 

12.1.2

The Committee considered a report of the
Executive Director City Futures seeking approval to enter into a
legal agreement with the owner of a potential relocation site (the
Owner) to take the proposed site off the market for up to two years
and to enable them to design a new industrial unit to tender stage
and cost the development.

 

 

12.2

RESOLVED UNANIMOUSLY: That the
Transport, Regeneration & Climate Policy Committee:-
1)   
That approval be given to enter into an agreement with the Owner of
a
potential relocation site and the Business
proposed to be relocated on the
terms set out below and in Appendix A:

A.   
With the Owner to:

-      
Take the relocation site off the market for up to two years and pay
holding
costs for the site whilst the
Council are in negotiations with the Owner
about a potential acquisition
of the site;

-      
Pay the Owner’s costs of developing and submitting a planning
permission for the building on the relocation site to be in the
joint names of the parties

-      
Pay the Owner’s costs for their design team to work up the
designs for the new industrial unit to be built on the relocation
site up to full tender stage; and

-      
Include a provision committing the Owner to the broad principles of
the
Scheme.

B.   
With the Business to:

-      
Pay the Business’ reasonable and proper costs and expenses
incurred in
working with the Owner on the
new building design and in working up
detailed costs and obtaining
quotations for the relocation of the business
into the new industrial unit;
and

-      
Include a provision committing the Business to the broad principles
of the
Scheme.

C.  
With both parties to agree that in the period during which the
Owner and Business are developing the detailed design of the new
industrial unit and calculating full costs, for the Council to work
with the Owner and Business to negotiate and agree in principle the
legal documentation for the Scheme.
2)   
To note that full costs of the relocation including the cost of the
land, building,
the development and business relocation costs
are to be brought back to
committees for approval together with the
terms of the Scheme.

 

 

 

 

12.3

Reasons for
Decision

 

 

12.3.1

The completion of the legal agreement with the
Owner and Business will take the identified relocation site off the
market for up to two years and enable the design of the new
industrial unit to tender stage and submission of a planning
permission for the new building.

 

 

12.3.2

This will enable a robust budget estimate for
the Business relocation costs to be understood which in turn will
enable the total budget for the Business relocation to be
established and this information can then be brought back to
committees.

 

 

12.4

Alternatives
Considered and Rejected

 

 

12.4.1

Alternative Option 1: Compulsory Purchase of
the business premises
 
If the Council do not enter into the legal
agreements with the Owner to secure the site, this will no longer
be a potential relocation site for the Business and there are no
alternative relocation sites in Sheffield.
 
The purpose of the agreements is also to
clarify the costs of the Scheme and if we do not enter into the
agreements the Scheme would not progress as we would have no budget
certainty. If the Council do not proceed to enter into the legal
agreements the only alternative would be to look to acquire the
Business by way of a Compulsory Purchase Order (CPO). The costs and
timescale for this are uncertain

 

 

12.4.2

Alternative Option 2: Do nothing
 
If the Council are unable to purchase the
Business either by relocation or CPO
then the proposed new access road cannot proceed.
 
Not spending the LUF funding at Parkwood would
mean foregoing the opportunity to deliver significant capital
interventions in Parkwood and the associated economic,
environmental and social benefits. No benefits would be delivered
along with no contribution to the Council Plan