Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
(a) That Option 2 for development of the Leaders Farm site as set out in paragraph 26 of the report be approved, namely
i. two Drive Thru restaurant units
ii. a 50,000 sq ft light industrial unit (subject to successful negotiations with the proposed tenant)
iii. further light industrial units on the remainder of the site (at an appropriate time in the future, subject to wider market assessment of the need for such units);
(b) That £8.2m be allocated from the Corporate Asset Investment Fund for the development of the Leaders Farm Site as set out in (a) above;
(c) That the Director of Corporate Resources, following consultation with the Cabinet Lead Member, be authorised to undertake all necessary preparatory work to enable the submission of a planning application for the proposed development.
REASONS FOR DECISION:
The development of the Council-owned land will support the delivery of both new business accommodation and income generating assets.
Having reviewed the various options available to the Council, Option 2 presents the best projected return for the capital invested based on current information.
OTHER OPTIONS CONSIDERED
The following 4 options were considered:
Option 1 - Develop the entire site including the Drive Thru units and the Light Industrial Units. This would require a capital contribution of approximately £7.95m.
Option 2 - Develop the site with the Drive Thru units, the unit for the purchasing consortium occupier (subject to successful negotiations) and the remaining site with light industrial units, subject to demand. This would require a capital contribution of approximately £8.2m but would be offset by a £6m capital receipt from the consortium occupier’s unit sale.
Option 3 - Develop the site with the Drive Thru units, the unit for the potential occupier and dispose of the remaining land. This would require a capital investment of approximately £6.44m but would be offset by a £6m capital receipt from the occupier and possibly a capital receipt in the region of £750,000 from the sale of the remaining land.
Option 4 - In the event the occupier interest does not come to fruition the Council could develop the Drive Thru units and dispose of the remaining land. This would require a capital contribution of approximately £3m offset by a land sale of potentially £1.75m.
Report author: Director of Corporate Resources
Publication date: 22/05/2020
Date of decision: 22/05/2020
Decided at meeting: 22/05/2020 - Cabinet