Minutes:
The Committee was reminded that, as part of the Council’s Corporate Land Bank, the former Maysfield Leisure Centre had previously been identified as a potential disposal within the context of the City Investment Framework. The Members had stressed the need for the use of Development Briefs to control the delivery of a development which would be acceptable to both Members and local residents in any such surplus asset disposals. At its meeting on 23rd August, 2013 the Committee had approved the preparation and marketing on the open market of a Development Brief for a portion of the Maysfield site. Use of a Development Brief as opposed to a conventional sale would enable the Council to retain control over the nature, use, timing and other factors considered relevant in any given disposal. In terms of the Maysfield site, the Committee had been advised of an interest in returning the site to immediate economic use with the creation of a significant number of jobs in the IT sector which resonated with the Council’s Investment Programme.
The Direction of Property and Projects reported that a Development Brief had been issued in December, 2013 by agents appointed by the Council, which offered the site as a mixed use development/refurbishment opportunity seeking submissions on that basis with an option to either purchase or lease. The submissions were, along with other relevant information, required to include details of the development proposals, programme of delivery, financial offer, outline of the economic benefits secured by the proposal and an estimate of the number and type of jobs promoted. Following selection of a preferred proposal, an Agreement for Lease would detail the contractual agreement with the Council whilst an interim Building Licence would enable a scheme to proceed until satisfactory completion of the development, when title to the property would transfer.
He reported that, by the closing date for the receipt of submissions, a total of 6 had been received. Evaluation of the submissions had been undertaken by a panel from the Council’s Estate Management Unit/Legal Services and had included the appointed disposal agent from GVA. The submissions had been equally split between 3 redevelopment and 3 refurbishment proposals and had varied from speculative office to owner occupation office; social/affordable housing, private housing; mixed use – residential/offices/retail; film/TV studios and had reflected both capital and rental financial bids. The prime objective in providing the development opportunity had been to secure a quality urban regeneration project which returned the vacant premises to a viable and sustainable economic use with an appropriate redevelopment scheme that supported job creation within a satisfactory timescale. In order that the Council’s requirements and objectives in offering that development opportunity were understood, the selection criteria had been detailed in the Development Brief.
The Director indicated that the Council was obligated to achieve the Best Price in any property asset disposal under Section 96(5) of the Local Government Act 1972 –and that all but except one of the submissions financial bids had passed that criteria. Of the remaining submissions, those that had envisaged owner occupation of either redeveloped or refurbished premises had scored the highest, with one company having the highest overall total mark.
The Director reviewed the details of the highest scoring bid, including the financial and overall benefits that would be achieved.
Accordingly, he recommended that the Committee grant approval for negotiations to be entered into with the company receiving the highest overall mark to complete an Agreement for Lease for the disposal of the identified site of the former Maysfield Leisure Centre, on the basis of their submission and subject to detailed terms to be agreed by the Estates Manager and Legal Services.
The Committee adopted the recommendation.