Decision details

Purpose of Report: To seek approval for a Developer to purchase the above site on payment of a sum based on a pre agreed profit share basis in return for release of the 1960’s Covenant. Purchase needs to be completed by end of November to prevent the Working Men’s Club from making a further year of losses.

The Executive will be asked to make a decision on the way forward from options given in the report.

The Council aims to give the same 28 days clear notice of non-key decisions as it does for key decisions, but in exceptional circumstances this may not be possible. In this case, the item will not have been on the forward plan for 28 days before the decision is taken. The item is being considered as an urgent matter as the purchase needs to be completed by end of November to prevent the Working Men’s Club from making a further year of losses.

The Executive Leader considered a report that detailed a proposal to release a restrictive covenant which applied to the site of the working mans’ club known as Tramways Club on Mill Street, York. This was identified on the plan in Appendix A.

Subject to the restrictive covenant being released, a developer had agreed to purchase the site from Tramways Club.  The developer was considering redeveloping the site for either a residential sale or senior living/ care scheme which would be subject to obtaining planning permission.  A financial formula had been agreed with the developer whereby the Council (as the party with the benefit of/ right to enforce the restrictive covenant) would share in any uplift in value the site on realisation of its completion after deducting the new scheme’s development costs.

Resolved: That agreement be given to release the restrictive covenant  on the site of the Tramways Club, Mill Street to enable the site to be developed for either a residential for sale scheme or for senior living/care accommodation, subject to obtaining planning permission.

Reason:     To enable the sale of the site of the Club to proceed as it has no viable future, whilst providing an opportunity for the site to be regenerated in line with the Castle Gateway vision and afford the Council with a potential future capital receipt.