Disposal of land at North Werneth [Werneth]

CABINET
Disposal of land at North Werneth [Werneth]
Report of Portfolio Holder: Councillor Jim McMahon, Leader and
Cabinet Member for Regeneration and City Region
Officer Contact: Darren Jones, Director of Economic Development
Report Author: Mark Prestwich, Development Officer
Ext. 1660
30 March 2015
Reason for Decision
The purpose of the report is to update Cabinet on the current position in respect to
Hartford Mill and outline details of a proposal that would seek to facilitate the potential
comprehensive redevelopment the area.
Recommendations
It is recommended that the Council note the contents of the report. A separate report
outlining the full terms of the proposal are due to be considered as a Part B item later
in the agenda.
Cabinet
[30 March 2015]
Disposal of land at North Werneth [Werneth]
1
Background
1.1
As part of the Housing Market Renewal proposals, the Council included the
vacant Hartford Mill property in the Oldham (Werneth / Freehold Area Phase
One Regeneration) CPO 2005.
1.2
However, utilising new powers within the Planning and Compensation Act
2004, the Council were able to obtain title via GVD in a number of phases
(rather than across the whole CPO area). As Hartford Mill had a number of
issues, it was decided that the Council would not serve a GVD notice in
respect to this property until a later phase of the Werneth redevelopment
programme. However, towards the end of the programme, due to a change
of power at central-Government, HMR funding was stopped and the Council
subsequently chose not to acquire the property.
1.3
Since this time, the owner has looked at a number of conversion options.
However, in the absence of any substantial grant funding and demand for
apartments or commercial uses on the site, the proposals have not
progressed and the Mill continues to blight the area. Whilst thought to be
structurally sound, the property’s isolated position means that it continues to
attract vandalism, theft and anti-social behaviour.
1.4
Being located next to the Freehold Metrolink station on a gateway into the
town, the Council are keen to see a scheme progressed and completed on
the site. Without any Council intervention, it is thought that the Mill will
continue to blight the area for years to come.
2
Current Position
2.1
As all parties maintain the view that reuse of the existing building, in its
existing condition, is commercially unviable, the Council has been asked by
the private mill owner to utilise its adjoining landholding to facilitate the
potential comprehensive redevelopment of the area.
2.2
Whilst both Hartford Mill and the Council’s adjoining land has been used for
industrial purposes and would require remediation prior to redevelopment, it
would be accepted by the Council that comprehensive redevelopment of the
combined site (only) should be sufficient to achieve viable redevelopment on
a low density residential development of larger property types.
2.3
As such, in order to give the mill owner sufficient confidence to submit a
planning application in respect to the whole site (i.e. the land shown edged
red and blue on the attached plan), the Council have offered terms for an
option in respect to its land.
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2.4
Under the terms of the option, in the event that the owner of the Hartford Mill
site is successful in obtaining planning consent, the owner can call upon the
option and the Council will transfer a long-leasehold interest in its adjoining
land (as shown edged red on the attached plan) to support comprehensive
redevelopment of the area on a residential basis.
3
Options/Alternatives
3.1
There are a number of options available to the Council and these can be
summarised as follows;
Do Nothing
3.2
The Council could choose to do nothing and not sell the adjoining land to the
owner of Hartford Mill. However, this approach is likely to result in the Mill
owner continuing to do nothing with the property.
3.3
In proceeding with this option, Hartford Mill is likely to continue blighting the
landscape for years to come. Being located immediately adjacent to Freehold
Metrolink station and the Metrolink line, it is important that this prominent
gateway property is addressed.
Sell the land
3.4
In order to try and support the Mill owner and seek comprehensive
redevelopment of the area at the earliest opportunity, the Council could
choose to dispose of the land now. This approach would generate a capital
receipt although, in choosing to sell the land at an early stage, there would be
little to incentivise the Mill owner to progress the proposed redevelopment in a
timely manner.
Provide an option
3.5
Alternatively, the Council could look to grant an option in its land. This
approach would give the Mill owner certainty that, should planning permission
for comprehensive redevelopment be forthcoming, the Council would be
bound to transfer the land.
4
Preferred Option
4.1
In order to protect the Council and in order to ensure that works are
progressed in a timely manner, it is considered preferable for the Authority to
provide an initial option agreement and, in the event that planning permission
is obtained, transfer a long-leasehold interest at that time.
5
Consultation
5.1
None.
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6
Financial Implications
6.1
The financial implications of progressing the preferred option are detailed in
the Part B report.
7
Legal Services Comments
7.1
By virtue of Section 123 of the Local Government Act 1972, the Council has
the necessary statutory powers of disposal. On a disposal of its land, the
Council are under a statutory obligation to obtain the open market value and
the best consideration that can reasonably be obtained and any other
disposal of land at less than best consideration will require the approval of the
Secretary of State.
7.2
By offering its land for sale by way of the grant of an option to buy to the
adjoining landowner, the Council will increase the chances that the adjoining
landowner will be able to bring about a comprehensive redevelopment of the
area in the near future. The grant of an option to buy is for use where the
Council is granting a developer an option to buy its land when the developer is
intending to apply for planning permission for a comprehensive
redevelopment of the joint area.
7.3
As the proposed sale is to the adjoining landowner and has not been exposed
to the open market, it prudent to obtain an independent valuation of the
Councils land. In particular, as an option to buy is being granted to the
adjoining landowner, it is necessary for an independent valuation report to
confirm that the proposed terms of the option agreement represent the best
consideration that could be obtained for the Council’s land. If not, then further
information will be required from the Valuer in support of an application for
disposal consent.
7.4
The exemption from publication is justified on the category stated in the
report. The Councils Land and Property Protocols have been observed.
[Peter Oliver]
Co-operative Agenda
8.
8.1
The Council are seeking to work with a third party landowner to bring about
comprehensive redevelopment of an area which regularly attracts antisocial
behaviour.
9
IT Implications
9.1
None.
10
Property Implications
10.1
Use of the Council’s assets as proposed provides an innovative solution to a
long standing legacy issue, facilitating residential development and generating
a capital receipt.
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10.2
11
It is noted that an independent valuation will be obtained in compliance with
the Land & Property Protocols.
[Cath Conroy]
Environmental and Health & Safety Implications
11.1
The property is a significant blight on the local community, not only stifling
property values but also attracting regular anti-social behaviour.
12
Equality, community cohesion and crime implications
12.1
None.
13
Equality Impact Assessment Completed?
13.1
No.
14
Key Decision
14.1
Yes.
15
Key Decision Reference
15.1
RCR-02-15
16
Background Papers
16.1
None.
17
Appendices
17.1
Appendix One – Plan
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Appendix One
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