Decision details

13.1

The Executive Director, Place submitted a report in relation to the negotiation of a new lease to allow the redevelopment of the Fox Hill Site.

13.2

RESOLVED: That Cabinet:-

(a)

delegates authority to the Director of Capital and Major Projects and the Director of Regeneration and Development Services, in conjunction with the Director of Finance, to negotiate the terms of a new lease or to amend the existing lease, whichever is more appropriate, as are considered necessary for the provision of good quality housing at Fox Hill;

(b)

delegates authority to the Cabinet Members for Homes and Neighbourhoods and Business, Skills and Development to consider the developers final proposals and whether they meet the City Council’s requirements and to make a decision as to whether or not to proceed with those proposals; and

(c)

delegates authority to the Director of Capital and Major Projects to instruct the Director of Legal Services to complete all the necessary legal documentation, subject to the decision being made to proceed with the proposals.

13.3

Reasons for Decision

13.3.1

The City Council wanted to ensure that a new developer was secured who could deliver high quality housing for Fox Hill.

13.3.2

The report requests that officers are authorised to continue with the existing negotiations and agree either a new lease or a variation of the existing lease to allow a scheme of development which will still maintain the high quality standards required.

13.4

Alternatives Considered and Rejected

13.4.1

The City Council had been cooperating with KPMG to allow them to secure a new developer. They had carried out some extensive market testing but interest in the site with the present obligations under the lease had been weak, resulting in only one positive expression of interest in 2012.

13.4.2

If the Bank of Ireland did not find a purchaser for the lease or the purchaser did not comply with the obligations in the lease the City Council could require that the lease was assigned to it for £1 and could seek to identify another developer. However, following the market testing already carried out, this was unlikely to result in any further interest. In the meantime the City Council would be responsible for all security and health and safety costs and no funding was available for this.

13.5

Any Interest Declared or Dispensation Granted

None

13.6

Reason for Exemption if Public/Press Excluded During Consideration

None

13.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

13.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

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