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Decision details

Proposed Disposal of Attercliffe Waterside Development Site

Decision Maker: Cabinet Member for Finance

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

Attercliffe Waterside is a long standing, ambitious canalside regeneration project. The land is owned by the Council, the Canal and River Trust and the Duke of Norfolk.

 

The report seeks approval to enter into a joint sales agreement to market and bring the land forward for development.

Decision:

1.    That the Cabinet Member for Finance approves the proposals to enter into the agreements to carry out a joint sale and future development of the land at Attercliffe Waterside on the basis set out in this report;

 

2.    That the Head of Property Services in consultation with the Director of Legal and Governance be instructed to agree the final terms of the documentation required to effect this transaction; and

 

3.    That the Director of Legal and Governance be authorised  to complete such legal   documentation as she considers necessary or appropriate in connection with this transaction on such terms as  she may agree to give effect to the proposals set out in this report and generally to protect the Council’s interests. 

Reasons for the decision:

1.    The proposed development at Attercliffe Waterside will be a major boost for the regeneration of Attercliffe, building on the success and momentum of the Olympic Legacy Park and growth of investment and employment in the wider Lower Don Valley.  

 

2.    The site has the potential to deliver up to 400 new homes in a mix of different housing types and to attract new businesses and jobs into characterful existing buildings around the canal.

 

3.    The proposal to enter into a joint sales agreement will produce higher land values to the Council than by trying to sell its interest in isolation.

 

4.    The proposed open market process and safeguards that will be built into the joint sales agreement and draft development agreement to capture future increases in value will ensure that the Council obtains the best consideration for its properties.

Alternative options considered:

1.    The Council and the other owners could continue to hold their property for the next few years before seeking to dispose on the open market and if the wider regeneration of the Lower Don Valley continues it is possible that they may achieve a higher value in future. However future values cannot be guaranteed and the vacant and semi derelict condition of the properties would continue to have a negative impact on the immediate area and not deliver the homes and economic benefits for the regeneration of Attercliffe.

 

2.    The Council could consider trying to dispose of its properties in isolation rather than in a comprehensive scheme with the other landowners. However the complexity of the leasehold interests and restrictive covenants together with the lack of control over what would happen with the other owner’s properties would mean that this would be difficult to achieve and values would definitely be lower.

 

3.    As a further alternative the Council could consider using its own capital resources to seek to acquire the interests of the other two landowners such that it has complete control over marketing and long term proposals for the site. However the Council’s capital programme has limited capacity and this may not be seen as a high priority for the use of limited funds, particularly if an alternative strategy can achieve largely the same outcomes. It is also unlikely that the other land owners would cooperate with such a proposal as both CRT and DoN have a long term interest in the future of the area.

Publication date: 14/03/2019

Date of decision: 13/03/2019

Effective from: 21/03/2019

Accompanying Documents: