Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
1. That the due diligence currently undertaken, as set out in the report, be noted.
2. That the re-development of the former Sale Magistrates Court be authorised pursuant to planning permission : 102822/FUL/20 and in accordance with planning policy, to include all non-material amendments and variations that may be required as a consequence of the development.
3. That authority be delegated to the Corporate Director of Place in consultation with the Corporate Director of Governance and Community Strategy to negotiate agree and authorise the entering into of all contracts, professional appointments, or any other similar matter required or beneficial to the delivery of the development.
4. That authority be delegated to the Corporate Director of Place in consultation with the Corporate Director of Governance and Community Strategy to negotiate, agree and authorise the entering into of easements, wayleaves, substation leases or any other similar matter required or beneficial to the delivery of the development whether or not it secures the best consideration that can be obtained.
5. That the disposal of the completed units be authorised in principle, and that authority be delegated to the Corporate Director of Place to negotiate agree and authorise the entering into of all contracts and deeds for the disposal of the completed units.
6. That the Corporate Director of Governance and Community Strategy be authorised to finalise and enter into all legal agreements required to implement the above recommendations.
7. That approval be given to an increased level of sustainability at a cost of £350k and inclusion of a contribution of £260k to Trafford Housing Trust towards Social Rent.
Implementation of the recommendation will allow the Development Team to work in collaboration with Seddon to remove a significant proportion of risk prior to contract appointment of Seddon to carry out the proposed development of 84 new homes within Sale. The development will produce a capital return for the Council which will support the delivery of the Council’s strategic objectives across the Borough.
Do nothing – Retain the site: This comes with a number of associated costs around security and keeping the site safe which if nothing is done with the site overtime will be become substantial. Borrowing was used to fund the purchase and clearance of the site which if not paid off will have an ongoing revenue cost to cover interest payments with the outstanding debt still need to be paid off. Or, sell the site with Planning Approval: The site was acquired at a cost £4.3m including associated fees and clearance of the site. With the current level of housing approved as part of the planning decision achieving this level of receipt would be hard based on private sector developers wanting to achieve a 15% development return on such a scheme. A lower receipt potentially could be realised but this would mean that any outstanding borrowing not covered by any receipt would need the interest funding through revenue and ultimately the borrowing would need repaying, with the latter having an impact on available capital resources.
Publication date: 29/09/2021
Date of decision: 27/09/2021
Decided at meeting: 27/09/2021 - Executive
Effective from: 07/10/2021