Decision details

13.1

The Executive Director, Place, submitted a report seeking authority to enter into an agreement for lease with Extreme Destinations Limited for Sheffield City Council’s land interests at the former Parkwood Springs Ski Village and adjoining land, to enable redevelopment of this prominent and derelict site as an outdoor leisure destination.

13.2

RESOLVED: That Cabinet:- 

(a)

delegates authority to the Chief Property Officer, in consultation with the Executive Director, Resources, to agree terms for the disposal of the land, including any reasonable variations, to the boundaries as required, and authorises the Director of Legal and Governance to complete all necessary legal documentation and notices in order to complete the disposal, subject to no objections being received to the open space notice; and

(b)

declares the hatched land, as outlined in Appendix C of the report, surplus to requirements.

13.3

Reasons for Decision

13.3.1

Preferred option – Proceed with the AfL with Extreme Leisure Destinations

This approach passes the commercial and financial risk of the development and design work to the developer.  Safeguards are built into the Agreement for Lease to commit the developer to timely delivery and ensure the Council retains control should the developer fail to make significant progress.

13.3.2

Entering into the AfL with Extreme Leisure Destinations will enable detailed work to begin on development of the scheme whilst protecting the Council’s interests.  This represents an important step in realising the vision set out in the Parkwood Masterplan and achieving the benefits for local communities and the people of Sheffield.  The AfL enables SCC to pass commercial risk to the developer through a traditional landowner-developer relationship, with principal risks managed by Extreme.

13.4

Alternatives Considered and Rejected

13.4.1

Do nothing – Council retain site

·           Nil impact on Council’s resource capacity to deliver redevelopment.

·           Fails to deliver on the Council’s Outdoor City Economic Strategy.

·           Leaves a prominent strategic site derelict and unviable for redevelopment by the market, whilst at the same time vulnerable to continued anti-social behaviour, vandalism and arson, with an ongoing maintenance cost and liability to the Council in the long term.

·           Does not assist the Council any further to market the site anew if current development partnership was not successful.

13.4.2

Council carries out improvement/infrastructure works and then re-markets the site

·           The Council could seek to enhance the value of the land and deliverability/viability by carrying out improvement/infrastructure works prior to release/disposal (such as works to the access road and improvements to drainage) before re-marketing the site.

·           There is no certainty of securing a developer to deliver the economic aspirations and outcomes expected from the site or guarantee that a significantly improved market rate will be achieved.

13.4.3

Council retains the site and undertakes the development itself

·           The Council could develop, and operate or seek an operator for a leisure destination.

·           This approach would require significant resource and funding and, as set out in the report, the viability and risk associated with developments of this nature can be marginal.

·           At this point in time this approach would expose the Council to undue commercial and financial risk.

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

Laraine Manley, Executive Director, Place

13.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing