Executive Sub-Committee for Property Minutes

Executive Sub-Committee for Property Minutes

Date:
Wednesday 17 February 2016
Time:
1:30 p.m.
Place:
Oberhausen Room,Town Hall, Middlesbrough
 

Attendance Details

Present:
Councillor C Rooney (Chair), J Brunton, M Carr, M Thompson and L Young.
Officers:
M Shepherd, T Wake and S Brown.
Apologies for absence:
Councillor T Harvey, J Rostron and N J Walker
Item Number Item/Resolution
PUBLIC
15/32 MINUTES OF THE MEETING HELD ON 16 DECEMBER 2015.

That the minutes of the Executive Sub Committee for Property Panel held on 16 December 2015 were taken as read and signed off by the Chair as a true record.
 

15/33 TO CONSIDER PASSING A RESOLUTION EXCLUDING THE PRESS AND PUBLIC FROM THE MEETING DURING CONSIDERATION OF THE FOLLOWING ITEMS OF BUSINESS ON THE GROUNDS THAT IF PRESENT THERE WOULD BE DISCLOSURE OF EXEMPT INFORMATION FALLING WITHIN PARAGRAPHS 1 AND 3 OF SCHEDULE 12A OF THE LOCAL GOVERNMENT ACT.

The decision to exclude the press and the public was agreed.

EXEMPT
15/34 PRISSICK CAR PARK - PROPOSED TRANSFER.

The Executive Director, Commercial and Corporate Services submitted a report the sought consideration of a proposal that transferred the ownership of the recently constructed car park at Prissick Base, in exchange for 4.1 acres of proposed housing development land on the Brackenhoe site and a staged payment to the Council under the terms outlined within the report.

 

On the 17 September 2013 a report went to the Executive Sub Committee for Property Panel that detailed the construction of a new 1100 space car parking facility, to be built on land owned by the Council, which was to be funded by and transferred to the purchaser in order to satisfy an outstanding planning obligation to relieve ongoing parking problems on the hospital site and reduce traffic on Marton Road, and particularly the pressure on the hospital junction.

 

Since commencement of the car park construction, the purchaser had suffered from significant financial difficulties, which had resulted in severe spending restraints being imposed upon them and blocking them from making a direct and outright payment to the Council for the new car park.

 

Following a series of discussions and negotiations the report outlined in further detail the options that were available to the Council.

 

ORDERED

 

That the recommendations of the report be approved.


REASON

 

The decision was supported by the following reason:

 

For reasons outlined in the report.

15/35 LAND AT TRIMDON AVENUE, MIDDLESBROUGH - PROPOSED FREEHOLD SALE.


The Executive Director, Commercial and Corporate Services submitted a report that sought approved on the proposal to dispose of the Council's freehold interest in land at Trimdon Avenue and to proceed in accordance with the report's recommendations.

 

At its meeting on the 19 June 2012 the Executive Sub Committee for Property Panel approved the sale of Trimdon Avenue to Bidder A and that should it be considered reasonable to make further revision of the terms of sale as a result of further investigations carried out by the purchasers and any planning requirements, then the Director of Regeneration and Director of Resources be authorised to agree the changes.

 

Subsequent negotiations were undertaken with Bidder A, which resulted in an amended sale price being agreed, recommended and approved by the Directors in accordance with the minutes. 

 

However due to concerns over the future housing market conditions following the failure of SSI at the end of 2015 the preferred bidder considered withdrawing its offer. A re-appraisal of the offer had been undertaken by the Council and its agent, which confirmed that the figure still represented market value for the site and could still therefore be recommended.

 

The preferred Bidder agreed to continue to proceed but with a delayed payment mechanism.  This would see 5% deposit payable on legal exchange, 45% payable on completion plus fees and the remainder by no later than 12 months from completion.  The outstanding balance would be protected by suitable legal charges being placed on the land by the Council.

 

The report outlined in further detail the options available to the Council.

 

ORDERED

 

That the recommendations of the report be approved.


REASON

 

The decision was supported by the following reason:

 

For reasons outlined in the report.

The decisions will come into force after five working days following the day the decisions were published unless the decision becomes subject to the call in procedures.
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