Agenda item

The Executive Member for Development and Executive Member for Finance submitted a report for Executive consideration.

The report sought Executive’s consideration of the bids received by the Council and to approve the disposal of the site to the preferred bidder to conclude the process and remove the designation of associated land as Public Open Space.

The report was considered by the Executive Sub Committee for Property as per the Council’s Scheme of Delegation, namely that the Executive Sub-Committee for Property is delegated the power to consider and determine the acquisition and disposal of assets (including land and buildings), other than equipment, plant and machinery for resale, in accordance with the requirements of Financial Regulations and Contract Standing Orders.

In July 2022, Executive approved the marketing and disposal of Hemlington Grange South site, for the purpose of enabling housing development.

Located towards the southern fringe of Middlesbrough, the site was a vacant, 7.05-hectare (ha) Council-owned site and was allocated within the adopted Housing Local Plan (2014). Development Guidance was drafted for the site, and this was subsequently adopted in October 2020 following public consultation. The development guidance provided design principles and expectations with regards to how the scheme should come forward in the future. The Development Guidance was provided to bidders as part of the tender pack when marketing the site; so that any bids would be truly reflective of the standard expected on the site.

The site constituted the southeastern most section of the wider Hemlington Grange site, which was also allocated in the adopted Middlesbrough Housing Local Plan as a strategic urban extension comprising 1,230 dwellings. To date, detailed planning permission has been granted for 846 dwellings on the Hemlington Grange site, of which 699 had been completed and occupied. The Council was aware that the site was an extremely popular and successful development.

The site was ideally situated to enjoy the surrounding coastline and countryside with Saltburn by the Sea located around 14 miles to the east and the North York Moors National Park a relatively short drive to the south.

The site benefits from outline planning approval, which was granted in April 2024, prior to site marketing. The site was estimated to be able to deliver up to a total of 150 units, subject to Planning, creating a high-quality development.

The Ward Member for Stainton and Thornton was invited to speak on the matter and requested that any development taking place on the site needed to be respectful of existing residents. It was clarified that such considerations would be examined as part of the Planning process.

The Mayor suggested that a package be compiled for future developers that encouraged consideration of existing residents be taken into account when building on the site.

AGREED that Executive:

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

2.    Take the decision once all the exempt information contained within Part B of the report had been considered.

OPTIONS

The Council had the option not to dispose of the land, however the absence of new development on this site would result in forgoing critical income via capital receipts, council tax yields and potential New Home Bonus for Middlesbrough Council.

The site had been allocated for housing in Middlesbrough’s Local Plan which was subject to extensive consultation. The disposal of the site would facilitate housing growth and support Middlesbrough's aspirations as a place where people wanted to live and ensuring that high quality housing was available to all.

REASONS

The capital receipts arising from the disposal of the site would assist with meeting the targets set out within the Medium-Term Financial Plan.

The site would be subject to the planning process and was targeted to provide quality family housing, ensuring there was an adequate housing supply, to stem outward migration and attract new residents into Middlesbrough. In addition, the development of the site would add to the Council Tax base and subject to central Government’s spending review, had the potential to attract the New Homes Bonus development incentive.