Decision details

Consideration was given to a report of the Deputy Chief Executive which sought approval to extend the existing authority to dispose of land of Ward Lane Diggle and to include the Council’s freehold interest in the disposal of the asset.

Following unsuccessful attempts to depose of the asset, the report recommended a revised strategy for the sale of Ward Lane Diggle and to put the site back onto the open market on the basis of a freehold disposal subject to, where possible appropriate safeguards to ensure that development proceeded.

Options/Alternatives considered:

Option 1 – Retain the land.

Option 2 – To dispose of the land on either a conditional or unconditional tender basis. As part of this option, authority to approve the preferred tender was recommended to be delegated to the Deputy Chief Executive in consultation with relevant Portfolio holder for Economy and Enterprise.

The tender would be based on the following:

• Freehold sale
• A ‘Buy back’ option with a deadline included if the site had not been developed within 3 years
• Payment of the Councils professional fees.
• A non-refundable deposit of 10% payable at the point of exchange of contracts which was to occur within six weeks of acceptance of the preferred tenderer’s offer. 

In the event the tender exercise was not successful due to a change in terms by the developer, officers can with the approval of the Deputy Chief Executive in consultation with the portfolio holder for Economy and Enterprise withdraw from negotiations and then re-tender the site or enter the site into the next available auction.

Option 3 – To dispose of the land at auction to be approved by the Director of Economy. The recommended terms of sale were:

• Freehold sale
• A ‘Buy back’ option with a deadline included if the site had not been developed within 3 years
• Payment of the Councils professional fees.

RESOLVED – That the Cabinet would consider the commercially sensitive information contained at Item 17 of the agenda before making a decision.