Issue - meetings

To consider the sale of this land.

That approval be given to accept the offer from Morris Homes for the sum of £800,000 and that Legal Services be instructed to prepare the contract documentation and proceed to legal completion on terms and conditions to be agreed by the Assets Manager and the Head of Legal Services and Monitoring Officer.

It was reported that Morris Homes had secured planning consent for a 39 dwelling residential development which included provision for 30% affordable housing and financial contributions of £216,665 (circa £5,500 per dwelling) in respect of S106.

In order to get full planning consent this required completion of a Section 106 agreement in respect of the above obligations. A s106 Agreement cannot be completed until the site is sold because the Council cannot enter into such an agreement with itself, as landowner and local planning authority.  The council can, however, enter into a s111 Agreement with the proposed purchaser which would enable the planning permission to be issued and the buyer to enter into the s106 Agreement when it has an interest in the land. This is subject to the Council entering into a conditional agreement to sell the land to the proposed purchaser.  The Council will receive a capital receipt from the sale of the property which will contribute to its 2015/16 disposals target, as well as providing 39 new homes. 

The Councils Planning and Highways Department have both been consulted, as part of the planning application and more recently, with regards to the suitability of access from both Newall Avenue and Millpool Way (the existing Morris Homes development). It was confirmed that access via Newall Avenue is insufficient to serve a development of this nature alone and therefore recommended that only a small number of dwellings be served via Newall Avenue. In light of this information a sale to Morris Homes is considered the only viable sale option and represents the best value.

In response to the points raised by local residents and the local ward councillor the reasons for this being the best option were explained and it was confirmed that a combined S111 Agreement tied in to a S106 Agreement had been used on a number of previous occasions in similar circumstances.  In addition, and in the light of a recent decision of the Southern Planning Committee, Officers confirmed they would ensure the current proposed arrangements were not affected. 

RESOLVED

That approval be given to accept the offer from Morris Homes for the sum of £800,000 and that Legal Services be instructed to prepare the contract documentation and proceed to legal completion on terms and conditions to be agreed by the Assets Manager and the Head of Legal Services and Monitoring Officer.