Decision details

Disposal of part of Asset 2094 - Land to the rear of Alexandra Retail Park, Glodwick [St Marys]

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

The purpose of the report is to;
-Outline the offers received by the Council in respect to a recently advertised opportunity to the rear of Alexandra Retail Park, Oldham (Asset 2094) and;
-Accept the offer submitted by Firstchoice Investments in respect to the area of land to the rear of Alexandra Retail Park (Asset 2094) as shown edged red on the attached plan.

Decision:

RESOLVED - That:
It is recommended that the Council proceed to dispose of a long-leasehold interest in the subject opportunity in accordance with the terms and conditions detailed in Appendix Two and Appendix Three of the report.

Reasons for the decision:

There would be a range of options available to the Council and these can be summarised as follows;
Option 1 - Do Nothing
3.2The Council could choose to do nothing and not look to accept any of the offers submitted to the Authority. In proceeding with this approach, the land to the rear of Alexandra Retail Park (as shown edged red) would remain vacant, the Council would fail to generate a capital receipt and the Authority would continue to be responsible for all maintenance and outgoings in respect to the land.
Option 2 - Accept the highest offer submitted to the Council by Driveaway Cars Limited
3.3The highest offer has been submitted by Driveaway Cars and whilst progression of this option would generate the highest capital receipt for the Council for this site, when considered in conjunction with the offers for the former Park Road Warehouse Site (Asset 2239) shown edged blue (and subject to a separate report), there are a number of concerns which inevitably would impact on the actual receipt received.
3.4To further explain, Driveaway Cars submitted bids for both the subject land to the rear of Alexandra Retail Park (Asset 2094) and the former Park Road Warehouse (Asset 2239). Driveway Cars are also the highest bidder for the former Park Road Warehouse siteand, as their preferred site is in fact the former Park Road Warehouse opportunity, their offer for Asset 2239 is substantially higher that the offer submitted in respect to the land to the rear of Alexandra Retail Park (Asset 2094)
3.5If the Council accepted the highest bid for the land to the rear of the retail park, from Driveaway Cars then, at their request, the Driveaway Cars bid for the former Park Road Warehouse site would not be considered. The next highest bid for this plot is considerably lower, meaning the combined receipts for both plots does not represent best value.
Option 3 - Accept the most economically advanteagous offer
3.8Alternatively, the Council could look to accept second highest offer for the land to the rear of the Retail Park which, when considered with the highest offer for the former Park Road Warehouse offer represents the most economically advantageous offer. This offer has been submitted by Firstchoice Investments who have aspirations to construct an indoor football facility on the site.
3.9To be clear; the second highest offer for the land to the rear of Alexandra Retail park plus the highest offer for the former Park Road Warehouse site would generate a greater capital receipt then accepting the highest compliant bid for each site.
3.10In addition, Driveway Cars have formally confirmed that, out of the opportunities offered, the former Park Road Warehouse site would be their preferred option. Therefore, subject to the Council accepting the offer submitted by Driveway Cars at the former Park Road Warehouse, Driveway Cars would be withdrawing their offer submitted in respect to land to the rear of Alexandra Retail Park.

Alternative options considered:

Option 1

Other reasons / organisations consulted

Officers have briefed Councillors previously about the intention to advertise the site on the open market and consider offers received.

Contact: Matt Gilray, Regeneration Officer 770 1663 Email: matt.gilray@oldham.gov.uk.

Publication date: 05/12/2017

Date of decision: 30/11/2017

Effective from: 13/12/2017

Accompanying Documents: