Agenda item

The Executive Member for Regeneration submitted a report for Executive’s consideration.

 

The report sought Executive approval for the disposal of Nunthorpe Grange, which was allocated in the Housing Local Plan (2014), in accordance with the Council’s adopted Asset Disposal Process, and to inform Executive of the next steps to take this site to market.

 

The report detailed that the site was allocated in the 2014 Local Plan, and Nunthorpe Grange was circa 24.29ha of green field land and was in three separate ownerships, with Middlesbrough Council owning approximately 15.64ha and the remainder privately owned.

 

Appendix 1 of the report showed the site ownership which comprised: 

 

·         land coloured red owned by Middlesbrough Council which totalled 15.64ha;

·         Lady Harrison’s Field/The Polo Field (land coloured yellow) owned by Sir Colin Harrison & Family Trust 3.06ha; and,

·         Land at Field House (coloured blue) owned by Persimmon Homes 5.59ha. 

 

The site was located south and east of existing residential developments. To the west and south were areas of open countryside. The site was bounded by the Guisborough Road (A171) to the north, by railway lines to the east, to the south by the (A1043) and to the west by the Stokesley Road.

 

A Member stated Nunthorpe had seen significant development without the requisite infrastructure for such development. As such, residents were dissatisfied with the situation. The Executive Member for Regeneration thanked the Member for their comments and appreciated their resident’s position. It was commented the Council’s financial position meant the recommendations contained in the report were necessary.

 

A discussion took place regarding the exempt information contained in Part B of the report. It was clarified that part of the report contained financial information that was not disclosable to the public.

 

AGREED that Executive:

 

1.    Note the information contained within Part A of the report.

2.    Approve the marketing and disposal of Nunthorpe Grange housing site; and

3.    Provide Delegated Authority for the Director of Regeneration and the Director of Finance, following consultation with the respective Executive Members, to approve the Public Open Space (POS) and Land Appropriation process once all the financial or exempt information contained within Part B of the report has been considered.

 

OPTIONS

 

Option 1 - Don’t sell the land.

 

This would have resulted in significant financial implications for the Council, including no capital receipt and no Council Tax revenue.  Failure to dispose of the land would be contrary to the Local Plan (2014).  The overall integrity of the Local Plan depends upon the land supply identified within it being made available; the Council would have been open to significant challenge from the housebuilding industry if it were seen to constrain land supply. 

 

Furthermore, this approach would result in significant abortive costs for the Council resulting from the due diligence work undertaken to date and the cost of legal proceedings relating to the farming tenancy.

 

Option 2 - Sell the land as a whole prior to de-risking the site.

 

Previous market and disposal advice for other sites highlighted that this approach did not demonstrate Best Value for the Council. The approach would present a vastly reduced land receipt and there would have been significant uncertainties around the timescales for delivery which could negatively impact upon Middlesbrough’s housing supply and Council Tax income, especially as the land did not currently come with the benefit of an outline planning permission.

 

Option 3 - Sell the land without outline planning permission

 

It is known that developers would pay for the benefit of a de-risked site. Disposal without planning consent would prove financially and strategically detrimental to the Council and have proven risky for developers, potentially leading to fewer than normal offers and at a reduced financial rate. 

 

Option 4 - Sell the land without undertaking further Due Diligence and Development Plan work

 

The Council’s proven financial approach to housing site disposals was based on maximising capital receipts by ‘de-risking’ sites. This involved undertaking site investigation works, producing design guidance or masterplans and gaining outline planning approval to competitively market sites.

 

Option 5 - Enter a Joint Venture

 

Independent advice and professional analysis consistently drew the conclusion that the proposal to collaborate with external partners on the disposal and delivery of housing site did not present Best Value for Money for the Council.

 

REASONS

 

The development of Nunthorpe Grange would bring a surplus, vacant and underutilised Council held asset into far more beneficial use in the future – creating a new community and a high-quality place.

 

Nunthorpe Grange was critical to the supply of land for housing development and was, in turn, critical for supporting economic growth in the town and the delivery of Council services. 

 

The disposal of the parcel of land was recommended in order to meet the Council’s requirements to generate capital receipts and increase annually recurring revenue streams through Council Tax.

 

With interest in Middlesbrough’s sites strong, it was timely to bring this site forward for development, to ensure that the maximum capital receipt was achieved and that the Council’s Medium Term Financial Plan (MTFP) is delivered.

 

Middlesbrough’s housing offer needs to keep pace with the demands of the market. The release and development of this site will allow that to be achieved; stemming outward migration and making Middlesbrough a desirable place to live, with a quantity of residential properties that would address the requirements of a changing, growing, and evolving population.

 

Furthermore, Nunthorpe Grange was allocated in the 2014 Local Plan and needed to be brought to market to avoid the Plan being compromised, and potentially challenged by developers if the Council was seen as constraining the overall land supply.