Purpose

The purpose of this report is to seek approval for the disposal of the vacant Malthouses housing site in Parson Cross to Sheffield Housing Company for the development of new housing.

Decision

It is recommended that the Chief Property Officer:

•       approves the disposal of the vacant Malthouses housing site in Parson Cross to Sheffield Housing Company for the development of new housing in accordance with this report.

Reasons for the decision

The preferred option is for the Chief Property Officer to approve the disposal of the vacant Malthouses housing site in Parson Cross to Sheffield Housing Company for the development of new housing.

This is the preferred option because:

·       The Malthouses site is within the approved land package for SHC to develop.

·       The Council cannot withdraw the site as it is not required for the purposes outlined in section 5.1 and a planning application has now been submitted and approved for the development of 73 new houses.

·       SHC’s proposal for 73 new houses meets two of the ambitions within the draft City Council Plan 2024 - 2028.

·       increase the availability, quality and range of housing in our neighbourhood

·       More homes for a sustainably growing city with choice, quality and affordability across Sheffield

·       SHC and SCC have satisfied the 17 pre drawdown conditions which must be satisfied prior to any land disposal taking place.

·       These have been formally approved by the Council’s SHC Strategic Partnership Board including agreement of the project price/ disposal value.

Alternative options considered

An alternative option would be to not approve the disposal and to withhold the site for the Council to develop - with the Council managing the design, build and sale of the homes. This has the advantage of maximum control of the quality of the product, increased opportunity of benefitting from an enhanced land value once the sites are developed and greater control of when the sites are developed.

However, under the terms of the SHC Development Agreement (section 38) the Council may only withdraw a Site (in whole or part) where the Site (or part thereof as the case may be) is required for one or more of the following purposes:

·       the furtherance of the Council's operational needs or achievement of its statutory duties or functions or in circumstances where the Council would be in breach of a statutory duty in granting a Land Demise which it cannot remedy within a reasonable timescale and at a reasonable cost;

·       to meet the requirements of statutory undertakers (whether in relation to the Site itself or in respect of other land);

·       to satisfy the demands of any public or statutory body which may have recourse to compulsory purchase powers (whether or not such powers have been exercised in respect of the Site itself).

Additionally, the Council may not serve a Withdrawal Notice if either:

·       the Site (in whole or in part) is included in an existing Approved Phase Business Case; or

·       a planning application has been made by the SHC for the relevant Site In accordance with the terms of this Agreement.

·       Both of these apply in respect to the Malthouses site.