Agenda item

The Executive Member for Regeneration and the Director of Regeneration and Culture submitted a report for the Executive’s consideration. The purpose of the report was to consider the proposed disposal of Phase 2 of the Council’s land in the Gresham Regeneration Area to Thirteen Housing Group on a 999 year lease.

The Elected Mayor of Middlesbrough had an ambition to attract an additional four thousand people to live in the town centre in the next ten years. The establishment of a viable and vibrant city centre living concept would give confidence to occupiers, developers and investors that the town centre was a safe, comfortable and well managed place in which to enjoy living, learning/working and leisure time.

As reported in August 2019, the Executive had previously approved the sale of the remainder of the Gresham site (including three commercial properties on Linthorpe

Road) to Teesside University to facilitate the development of a Student Village. The proposed sale would have generated a capital receipt for the Council.

The Council was subsequently informed that the University was withdrawing its offer for the site as a consequence of interest expressed by Thirteen Group to redevelop the whole of the Gresham site for residential housing and because the need for additional student accommodation would be met by the completion of the Cornell development.

Thirteen confirmed their interest in securing the additional land at Gresham (excluding the three Linthorpe Road properties), which was to be sold to Teesside University as a Student Village, to complement their initial proposal and had submitted a Development Appraisal based on an 81 unit scheme of affordable homes and apartments. A site plan was attached as Appendix 1 of the submitted report.

From a valuation perspective, and with consideration of the factors set out in paragraph 16 of the submitted report, the proposal to dispose of the land for £NIL consideration was justified. As a result, the residual land value became negative - making the development of the site not feasible in pure market terms.

ORDERED

That the disposal of Phase 2 of the Gresham housing site to Thirteen Housing Group on a 999 year lease at nil consideration, for the reasons set out in the business case, be approved.

REASONS

The Elected Mayor of Middlesbrough had an ambition to attract an additional four thousand people to live in the town centre in the next ten years. The Mayor’s ambition accorded with the priorities for Place, set out in the Strategic Plan 2020-23, which stated that the Council would build more town centre homes to boost businesses and increase vibrancy, while reducing the need to build on green space.

In addition, the Council’s Strategic Housing Market Assessment (2016) identified a need for an additional 200 affordable homes per annum over the period 2016-34.

The development of Gresham would make a major contribution to Middlesbrough’s regeneration ambitions. Those included:

a)    increasing developer confidence, acting as a catalyst to stimulate the Urban Living market;

b)    enhancing the visual appeal of the town centre, which would contribute to an attractive place to live work and visit; and,

c)    improving the vitality of the town centre, increasing occupancy and creating additional footfall as a result of additional people living in the town centre.