The Executive Member for Regeneration, the Executive Member for Finance and Governance, the Director of Regeneration and Culture and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to seek approval for the disposal of sites in South Middlesbrough, which were allocated in the Housing Local Plan (2014), in accordance with the Council’s Asset Disposal Process, and to advise of the next steps to take those sites to market.
The implications of the recommendations of Part B of the report had been considered by the appropriate officers of the Council and were set out in the main body of the submitted report.
The recommendations of Part B of the report sought approval for the disposal of sites in South Middlesbrough, which were allocated in the Housing Local Plan (2014). There were significant implications of any potential decisions that would result in the Council not disposing of those sites for housing development. The overall integrity of the Local Plan depended upon the land supply identified within it being made available, and the Council would be open to significant challenge from the housebuilding industry if it were seen to constrain land supply.
The Council’s approach to housing site disposals was based on maximising capital receipts by ‘de-risking’ sites by undertaking site investigation works, producing design guidance or masterplans, gaining outline planning approval and competitively marketing sites. The Council could elect not to ‘de-risk’ the sites prior to marketing, but it would result in a reduced capital receipt.
The proposed disposals identified represented the most advantageous route for that site, based on the information currently available.
1. That the information contained in Part A of the report be noted.
2. That the decision be taken once all the financial or exempt information contained in Part B of the report had been considered.
The development of the identified sites would bring surplus, vacant and underutilised Council held assets into far more beneficial use in the future - creating new communities and high quality places.
The three Council owned sites were critical to the supply of land for housing development and were in turn, critical, for supporting economic growth in the town and the delivery of Council services.
The disposal of the subject parcels of land was recommended in order to meet the Council’s requirements to generate capital receipts, increase annually recurring revenue streams.
With interest in Middlesbrough’s sites strong, and a buoyant property market nationally, it was timely to bring those three sites forward for development, to ensure that the maximum capital receipt was achieved and that the Council’s Medium Term Financial Plan was delivered.
Middlesbrough’s housing offer needed to keep pace with the demands of the market. The release and development of those sites planned to 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, those sites were allocated in the 2014 Local Plan and had to be brought to market to avoid the plan being compromised, and potentially challenged by developers if the Council were seen as constraining the overall land supply.