Decision details

To consider the report of the Leader, Clean Growth and Development seeking approval to commercial terms for re-structuring of existing leases and completion of the necessary documentation required in order to progress regeneartion of the Nelson Gate site.

(i)  That the principles of the Commercial Terms set out in Confidential Appendix 3 be endorsed.

(ii)  That following consultation with the Leader of Council, the Director of Finance and Commercialisation subject to receipt of a satisfactory S123 report, the Director of Growth be given delegated authority to finalise terms as referred to in (i) above for the proposed transaction and legal agreements relating thereto.

(iii)  That the Director of Legal and Governance be given delegated authority to enter into all legal documentation necessary to facilitate regeneration of Nelson Gate (e.g. new leases) pursuant to terms of the Agreement referred to at (ii) above being met.

1.  As freehold landowner the Council wishes to see the Nelson Gate site (as identified on the Plan at Appendix 1) which comprises three largely vacant 1980’s office buildings and a surface car park, brought into more beneficial use and the scheme’s potential optimised.

2.  In order to bring about the desired outcomes, it is necessary to re-gear the existing tenure arrangements and grant new leases over the subject site, as set out in this report and appendices.

Officers considered marketing the Council’s interest in the site. This was rejected on the basis that there would be no certainty that such disposal would bring about the desired outcomes, there would effectively be only one potential purchaser (the existing head-lessee) and that any such disposal would sub-optimise the Council’s financial returns. This is a strategically important site and the Council’s ongoing involvement as freehold landowner will facilitate delivery of the scheme and its wider economic benefits and help to ensure that the scheme is completed in a timely manner.

Amended paragraph 16 to read as follows:

The Council will participate in future financial benefits from the scheme, as outlined in appendices to this report but is not providing any funds or resources to the developer. 

Therefore, the Council has only limited exposure to the timing and amounts of capital receipts as explained in Appendix 4.