Issue - meetings

Report of the Chief Executive on the proposed purchase of residential development land at Peartree Lane, Welwyn Garden City.

(1)   That the Council seek to negotiate with the YMCA to acquire this site. 

(2)   That delegated authority is granted to the Head of Resources in consultation with the Leader and the Executive Member for Resources, to negotiate this purchase, provided it is at a sum no greater than that set out in the exempt report on this matter and subject to confirmation from a qualified valuer that the council is acting on market terms.

(3)   That subject to successful negotiation of a purchase price of less than or equal to the value set out in the exempt report on this matter, that a budget be recommended to Council. The value recommended will be linked to the negotiated purchase price plus stamp duty land tax.

(4)   That subject to successful negotiation and approval of budget, that delegated authority is granted to the Head of Resources in consultation with the Leader and the Executive Member for Resources, to appropriate the site to the Housing Revenue Account for the value set out in the exempt report on this matter, or dispose of the site to its subsidiary company Now Housing Limited or on the open market.

Report of the Chief Executive on the proposed purchase of residential development land at Peartree Lane, Welwyn Garden City.

(1)       The Decision Taken

RESOLVED:

(unanimous)

(1)  That the Council seek to negotiate with the YMCA to acquire this site. 

(2)  That delegated authority is granted to the Head of Resources in consultation with the Leader and the Executive Member for Resources, to negotiate this purchase, provided it is at a sum no greater than that set out in the exempt report on this matter and subject to confirmation from a qualified valuer that the council is acting on market terms.

(3)  That subject to successful negotiation of a purchase price of less than or equal to the value set out in the exempt report on this matter, that a budget be recommended to Council. The value recommended will be linked to the negotiated purchase price plus stamp duty land tax.

(4)  That subject to successful negotiation and approval of budget, that delegated authority is granted to the Head of Resources in consultation with the Leader and the Executive Member for Resources, to appropriate the site to the Housing Revenue Account for the value set out in the exempt report on this matter, or dispose of the site to its subsidiary company Now Housing Limited or on the open market.

(2)       Reasons for the Decision

The YMCA intend to redevelop their site to provide improved accommodation.  Part of the project will be funded by Homes England.  As the YMCA work closely with the Council in helping us to address homelessness, this provision of improved accommodation is in the Council’s interest.

But the project is only viable if the YMCA are able to sell part of the site for residential development.  At present, the Council holds certain covenants on this part of the site which cannot simply be waived.  Any payment by the YMCA to extinguish the covenants would render the overall redevelopment scheme unviable.

But as explained in the report, if the Council were to purchase this part of the site, the covenants would fall away automatically, and the Council would acquire a residential development site at a discounted sum. The discount arises from the overage provision due to the Council.

With such a purchase, the Council would have the opportunity to sell the land from the General Fund, develop itself or within Now Housing, or appropriate it to the Housing Revenue Account.  These options would be evaluated subsequent to an acquisition.

The acquisition will therefore enable the Council to acquire a development site at a discount, as well as enabling the YMCA to proceed with a project that is in the Council’s interest and will benefit from a Homes England grant.

Report of the Chief Executive on the purchase of residential development land at Peartree Lane, Welwyn Garden City.

The council sought to negotiate to acquire the site for no more than the amount set out in the report.

Report of the Chief Executive on the purchase of residential development land at Peartree Lane, Welwyn Garden City.

(1)       The Decision Taken

RESOLVED:

(unanimous)

The council sought to negotiate to acquire the site for no more than the amount set out in the report.

(2)       Reasons for the Decision

The purpose of the report was to set out the exempt matters in support of the recommendation made in item 7C.

As set out in the Part I report the council hold the benefit of a number of covenants and an overage provision over the YMCA site in Peartree Lane, Welwyn Garden City.  This site is being brought forward for redevelopment by One YMCA.

The site will be worth £4.0M if purchased by the Council, and the approval sought in item 7C is to negotiate for a purchase price not exceeding the amount set out in the report.