Purpose

Land declared surplus at Palace Road was marketed by an external agent and after a bidding exercise, the highest bid was accepted.  The developer’s original proposal was for the development of 22 houses, but following a number of discussions with planning colleagues, the scheme most likely to be granted planning consent would for the development 16 houses, of which 6 will be in the form of an apartment block.  The reduction in density, the altered layout and the change in housing mix to comply with planning requirements has impacted on viability and value, and a reduced land value.  The revised offer is still higher than independently verified market value and higher than the other bidders, who similarly would have been affected by the Council’s requirements.

Decision

RESOLVED

That approval be given for the unconditional offer from the highest bidder to be accepted. 

Reasons for the decision

Since marketing the site via a third-party specialist agent, and the selection of the preferred bidder, the layout, housing density, housing mix and viability of the scheme has changed several times.  Only now that an unconditional offer has been received is it appropriate to seek authority for a sale to be progressed.

Alternative options considered

(i)                  The site could be left as it currently is with no budgetary provision for maintenance and a liability to the Council.

(ii)                The site could be re-marketed, but since being taken to the market, the market value of land in the area has fallen for a variety of reasons and the current offer has been independently assessed as being best price that could reasonably be obtained.