Issue - meetings

This report sets out a proposal to sell the Council’s land on the Hungate site in order to bring new jobs into the city and generate a capital receipt.

RECOMMENDED:     i)         That Council agree to commence negotiations for the sale of the Hungate site to the Hiscox development partner, Bidder 2.

ii)         That Council delegate authority to the Director of Customer and Business Support Services the power to finalise an agreement for the sale of the land to Bidder 2 at a commercial market value being not less than the figure set out in Annex 2 of the report.

iii)        Cabinet recommends to Council amendment of the capital programme financing, reducing capital receipts by £1.627m, with a corresponding increase in prudential borrowing.

REASON:      i)             To promote the economic well being of the City by ensuring the creation of between 400-600 new jobs and realising a capital receipt to fund the capital programme.

ii) & iii)     To ensure the effective delivery of the capital programme.

Consideration was given to a report which set out proposals to sell Council land on the Hungate site to bring new jobs into the city and generate a capital receipt.

The site which comprised the former Peasholme Hostel, the Haymarket Car Park and the former Dundas Street Ambulance Station was shown at Annex 1 of the report.

Interest in the site had been forthcoming from Hiscox Ltd and following detailed investigations and discussions a formal offer for the site received. Although the site had not been marketed other interested parties had also been asked to submit offers and a number for expressions of interest and subsequent offers had now been received.

Information on and an analysis of the three bids was set out at paragraphs 6 to 18 and at Confidential Annex 2. Additional options together with an evaluation of the individual bids and the report of the independent valuer were also provided at paragraphs 19 to 26 and Annex 3. It was also note that the Council had an obligation not to sell land for less than the best consideration reasonably obtainable, without the consent of the Secretary of State. The Council would need to be satisfied that these obligations were complied and this was further explained in Confidential Annex 4.

The Leader pointed out that whilst the offer by Bidder 2 was not the highest, that it provided the largest economic benefit to the city and higher business rates than would have resulted from a hotel development.

Following further lengthy discussion it was

RECOMMENDED:     i)         That Council agree to commence negotiations for the sale of the Hungate site to the Hiscox development partner, Bidder 2.

ii)         That Council delegate authority to the Director of Customer and Business Support Services the power to finalise an agreement for the sale of the land to Bidder 2 at a commercial market value being not less than the figure set out in Annex 2 of the report.

iii)        Cabinet recommends to Council amendment of the capital programme financing, reducing capital receipts by £1.627m, with a corresponding increase in prudential borrowing. ^1.

REASON:      i)             To promote the economic well being of the City by ensuring the creation of between 400-600 new jobs and realising a capital receipt to fund the capital programme.

ii) & iii)     To ensure the effective delivery of the capital programme.