Decision details

Disposal of Land, Heysham Business Park

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


Agree the terms of a sale following the exercise of an option to sell by way of a long leasehold interest


(Cabinet Member with Special Responsibility Councillor Hanson


Cabinet received a report from the Director of Economic Growth and Regeneration to report on the terms agreed in relation to disposal of land at the former Shell ICI site and as required under the Cabinet agreement to the disposal dated 12 February 2013.

Whilst the report was public, Appendices B & C were exempt from publication by virtue of paragraph 3 of Schedule 12A of the Local Government Act 1972.


The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:



Option 1:  proceed with the legal completion of the transaction with Lancaster Power

Option 2:  do not proceed with the transaction to Lancaster Power



Opportunity for the council to receive a capital receipt.


Accords with the councils’ corporate objectives and stated aims for the regeneration and growth of the Heysham gateway area

The potential to pursue other opportunities in relation to the site



The loss of opportunity to pursue other opportunities in relation to the site.

Lost opportunity for capital receipt


Ongoing liability for this parcel of land


Possibility of legal challenge by not adhering to the terms of the legally binding option agreement between the parties



None specifically identified

Strong probability of legal action against council and a possible direction to pay compensation


The officer preferred option is Option 1 as it accords with the legal obligations contained within the option agreement between the parties.


·         It retains ‘surplus’ land for future alternative uses.

·         It secures the councils future position as to compliance with S123 of the Local Government act and provides the ability to ‘control’ the nature of uses across the Heysham Gateway area.

·         The proposed use accords with the Councils stated development aspirations for the area as outlined in the emerging local plan and Heysham Gateway Vision Document.


Councillor Hanson proposed, seconded by Councillor Clifford:-


“That the recommendations, as set out in the report, be approved.”


Councillors then voted:-


Resolved unanimously:


(1)        That the terms of sale be agreed, following exercise of the Option to purchase a lease by Clifton Marsh Power (now trading as Lancaster Power) and Lancaster City Council arising from an agreement dated 30th July 2014.


(2)        That delegated authority to complete the transaction be granted to the Director of Economic Growth and Regeneration.


Officer responsible for effecting the decision:


Director for Economic Growth and Regeneration


Reasons for making the decision:


The proposal supports the Councils Corporate plan, local Plan and Vison document for the area, in its priority of economic growth and key themes of environmental sustainability and effective management of the Councils resources. The transaction will provide a certain capital receipt to the council, allow the redevelopment of this brownfield site for energy related uses, attract valuable inward investment into the district, create immediate jobs during the construction phase and a lesser number of long terms jobs during the plants operational phase. It concludes the council’s original decision to dispose of the land dating back to 2012.

Report author: Richard Crompton

Publication date: 12/03/2019

Date of decision: 05/03/2019

Decided at meeting: 05/03/2019 - Cabinet

Effective from: 19/03/2019

Accompanying Documents: