Decision details

To consider the report of the Cabinet Member for Resources and Workforce Planning seeking approval for the sale of land at Town Depot for less than market value, in order to enable the development of American Wharf and the preservation of a Grade 2 listed building.

(i)  To approve the sale of land adjacent to American Wharf, forming part of Town Depot, by way of conditional agreement for the grant of a long lease for less than best consideration to enable the conversion and re-use of American Wharf.

(ii)  That the Head of Property and Procurement be given authority to finalise disposal terms and to take all appropriate steps in consultation with the Solicitor to the Council to complete the disposal.

The Council will assist in saving one of the City’s historic buildings from dereliction whilst also providing new homes and business premises. The improvement and re-use of this building will enhance the future use of the councils remaining land at Town Depot.

1.  The Council could seek the market value of the land from the developer, however, this would make the scheme unviable.

2.  The Council could refuse to sell the land to the developer however this would make the proposed uses unviable as no parking could be made available.

3.  The Council could sell this land with the Town Depot site. However, it is unlikely that it could be used for anything other than storage or car parking in view of its proximity to American Wharf and is unlikely to realise any additional value. The sale of this land does not detrimentally affect future plans for the remaining land at Town Depot.

4.  The Council could insist that the Council share in any increase in the value of the refurbished building between the date of exchange of contracts with the Council and the date the units are sold. This is a standard condition within normal commercial transactions. However the developer is not willing to agree to this on the basis proposed by the Council. He has agreed, however, that the price for the land will be increased by the change in the retail price index between the dates of exchange and completion.