Agenda item

Option 1: Terminate the Development Agreement with Centros (due to there being insufficient time to process an acceptable planning application by October 2011) and seek to carry out a community based masterplanning process

Option 2:

Extend/Revise the Development Agreement with Centros, subject to revised terms and conditions being negotiated by the District Valuer (or their appointed professional) to comply with S123 of the Local Government Act 1972 due to the special purchaser arrangements that are in place

Option 3: Terminate the Development Agreement and retain all existing uses on the Council owned land

Option 4: Terminate the Development Agreement and dispose of the Council owned land on the open market

Advantages

Such a process will engage with all the communities who have an interest in the process, including the residents associated with “Its Our City”.

The outcome could also inform the Local Development Framework Land Allocations process for Members to consider.

As detailed in Appendix B, the adjoining land owner has agreed to enter into a land sale agreement with Centros to dispose of their interests in the land.  Considering this, the Council would not need to consider acquiring the land, nor would it need to consider the cost of submitting a planning application as these would all be covered in the Development Agreement with the adjoining land owner, Centros.

It would not be considered to be economically value for money to consider acquiring land from a developer where that developer is willing to undertake development themselves.  Such an option of “special purchaser” is considered acceptable on the proviso that the disposing authority ensure it receives market value for the asset and to facilitate this, it is proposed that the District Valuer will be appointed to agree suitable terms and conditions of the proposed Development Agreement.

The Council would retain ownership of the site, up until the point when the site is developed, thus maintaining control over the development process.

Should members approve working with Centros, this would allow an early start on the planning process, maximising on the positive progress made to date.

None

The Council would obtain a capital receipt, but this would be lower than that received if planning approval is sought first.

Disadvantages

Although a community based process would result in a masterplan being produced, there would be no developer on board to implement the scheme.

Because the scheme in question is strategic and will affect the total population of the district (over 140,000) and communities from South Lakes and Wyre, it is difficult to identify how a community based process would comprehensively capture and balance all views of the community.  Because of the strategic nature of the project, it would probably be best to leave such engagement with the community to the developer and have a robust engagement strategy through the planning process.

None

Such an option would be contrary to the current Development Brief for the site and the principles of the Council’s approved Local Development Framework.

The Council would have no trustee land owner control over the form that the planning process would take as a development partner.  It would only have control through its regulatory function. And hence could be overridden by the Secretary of State.

Risks

There can be no assurances that a private sector developer would accept a community led development and the City Council would then need to fund the cost of carrying out the masterplanning process which could run into hundreds of thousands of pounds.

A community led approach could also raise the expectations of the community and may create a plan which is undeliverable in commercial terms.  A formal land allocation in the LDF could not be made if practical delivery were questionable.

There is a risk that the Developer will not carry out community consultation to a satisfactory level.  However, this can be mitigated through phrasing within the revised Development Agreement.

None

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