Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
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.
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.
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.
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: