Appendices 2

CABINET REPORT Report Title Disposal of Land adjacent to the A43 at Round Spinney

AGENDA STATUS: PUBLIC

Cabinet Meeting Date: 16 January 2013

Key Decision: Yes

Within Policy: Yes

Policy Document: No

Directorate: Regeneration, Enterprise & Planning

Accountable Cabinet Member: Cllr Tim Hadland

Ward(s) Talavera Ward

1. Purpose

1.1 The purpose of this report is to seek the authority of Cabinet to the disposal of freehold land that is designated as public open space, situated adjacent to the A43 at Round Spinney and identified in Appendix 1.

1.2 The purpose of the disposal would be to help facilitate the dualling of the A43 and consequential by pass of Moulton by County Council, in conjunction with the proposed comprehensive development by others of land near Moulton (“Overstone”).

2. Recommendations

2.1 That Cabinet approve, in principle, the disposal of land adjacent to the A43 at Round Spinney, shown edged red upon the plan at Appendix 1.

2.2 That Cabinet authorises the advertisement as necessary of the proposed disposal of public open space in accordance with the requirements of the Local Government Act 1972, as amended by the Local Government, Planning and Land Act 1980, in respect of land referred to above at 2.1 above.

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2.3 That Cabinet agrees to delegate authority to the Director of Regeneration, Enterprise and Planning, in consultation with the Cabinet Member for Regeneration, Enterprise and Planning, to approve the terms of any disposal of this land – on a basis that directly links any land transfer to (i) the dualling of the A43 and (ii) the phased development of the proposed North Sustainable Urban Extension.

2.4 That Cabinet notes that Northamptonshire County Council (NCC) has recently resolved to bring forward infrastructure improvements to the A43 at Round Spinney (“Moulton Bypass Phase 1”) working with Daventry District Council (as local planning authority for the majority of the route).

3. Issues and Choices

3.1 Report Background

3.1.1 This Council owns the freehold of land close to the A43 at Round Spinney, shown edged red upon the plan at Appendix 1. The broader location of the land is illustrated upon the plan at Appendix 2. The land is designated as public open space. The Corporate Asset Board (CAB) has at several meetings considered the various issues linked to the potential disposal of this land. At its most recent meeting on 29 November 2012, it supported the principle of disposal.

3.1.2 This Council was approached approximately 12 months ago by a major developer regarding this land. The developer has existing options to purchase land close to Moulton, within an area designated as a sustainable urban extension (SUE) within the draft Joint Core Strategy (JCS). The land is known alternatively as “Overstone” or as “Northampton North SUE”. Key elements of this SUE set out within the JCS include the development of c. 2,000 dwellings; primary school place provision and a local centre incorporating retail, health and community facilities. A contribution towards provision of a high quality public transport corridor to Northampton Town Centre would be expected. Improvements to Round Spinney roundabout and a new road through the SUE, from Round Spinney roundabout to Overstone Road, are also noted as part of necessary highway infrastructure requirements.

3.1.3 This Council‟s land is being sought, along with larger areas of adjacent land owned by Northamptonshire County Council (NCC), to facilitate the dualling of the A43, partly to help service the proposed major developments at Overstone. Whilst this upgrade of the road is not an essential formal planning requirement in the draft JCS, the dualling of the A43 in this locality is a key priority for NCC. The planning application for major development itself will be determined by Daventry DC, as the land is nearly all within their administrative boundary.

3.1.4 A formal approval was given by NCC`s Cabinet on 4 September 2012 to reach terms of engagement with Daventry DC to bring forward these highways improvements. The report identified likely capital costs and possible income streams for funding them - including potential monies from Section 106

ad/committees/cabinet report template/08/01/13 planning agreements, Community Infrastructure Levy, New Homes Bonus and Business Rate growth related to the scheme.

3.1.5 NBC and NCC have held various meetings and discussions with the developer and other relevant land owners concerning this Council‟s land and that of the NCC. On a „subject to contract‟ basis, the developer has put forward proposals to enter into an option agreement to buy the respective Council‟s land interests. NBC have provisionally agreed that NCC should represent both parties in the detailed aspects of land negotiations – subject to this Council‟s right of veto if necessary. NCC intend to appoint a firm of external Solicitors with the relevant experience in drafting complex option agreements of this nature. It is proposed that the firm appointed could act for both Councils and that there would be a sharing of net costs between NCC and NBC in this regard.

3.1.6 The land in its existing use has only nominal value. The substantive development scheme at Overstone could proceed, in planning terms, without this land (i.e. without dualling of the A43 and the bypass of Moulton). Nevertheless, the present offers received by this Council and by NCC for their property interests reflect values related to a comprehensive development scheme.

3.2 Issues

3.2.1 This Council‟s land forms part of the 1985 agreements for the Community Related Asset Transfer package between the then Northampton Development Corporation and Northampton Borough Council. The agreement makes the provision for a claw back in favour of Northampton Development Corporation or its successor - now Homes and Communities Agency (HCA) - for any value generated from a disposal (that includes the grant of any interest or licence in or over land on the open market). The basis for the payment tapers from 100% in 1985, reducing by 2% each year thereafter. Therefore should a trigger event occur in 2012/2013 the proportion of capital receipt payable to the HCA would be 46%. The grant of an option agreement to the developer would constitute a disposal under the agreement and therefore trigger the claw back to HCA.

3.2.2 The Council would consequently need to ensure that if it entered into any option agreement, a payment of at least that element of liability that might be triggered (so far as the HCA claw back is relevant) would need to be paid by the developer at the outset. Alternatively, this Council could seek to agree a separate arrangement with the HCA to accept a deferred payment in line with the terms of any option agreed. To put this into context, the Council may not otherwise obtain a first phase capital receipt until 2018.

3.2.3 This Council supports the aspirations of NCC to improve the strategic road network, i.e. dualling of the A43. However, it is important to ensure that other infrastructure and community provision, including the matters set out at 3.1.2 above and more generally in the JCS, are provided. This is necessary to ensure that this significant new community on the edge of Northampton will be cohesive and successful.

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3.3 Choices (Options)

3.3.1 The Council could choose to retain this land in its current use as Public Open Space. The land would continue to be available for use by local residents. It would continue to generate no income and incur maintenance costs. An opportunity to generate capital receipts would not be realised.

3.3.2 The Council could choose to dispose of the land, in combination with land owned by NCC to help bring forward a highways proposal that would benefit some residents in the immediate locality and assist in the development of the strategic road network. A significant capital receipt would be generated for land that otherwise has very limited value and maintenance liabilities would be eliminated. There would though be a loss of amenity for those persons who do utilise this land at present.

4. Implications (including financial implications)

4.1 Policy

4.1.1 The promotion of development in this wider locality is consistent with the draft Joint Core Strategy for West Northamptonshire.

4.2 Resources and Risk

4.2.1 Capital: A significant capital receipt would be realised by disposal. However, as noted above a proportion of any capital receipt (% dependent upon timing) would be payable to the Homes and Communities Agency under the Community Related Assets Agreement.

4.2.2 Revenue: The disposal of this land would eliminate maintenance liabilities. There would be officer time incurred in the disposal of this land (Asset Management & Legal). There would be advertisement costs connected with the proposed disposal of public open space. There may also be fees paid to external lawyers - depending on the agreement reached with NCC and on the specific terms of any option agreement (regarding developer‟s liability for vendor‟s costs).

4.2.3 The property would be disposed of at the best value that could be currently obtained in the market, having due regard for obtaining the “best consideration” (as set out in 4.3.2 below).

4.2.4 Risk: As noted at 3.2.2, the Council on completion of an option agreement may be required to pay monies to the HCA in order to meet its obligations under the Community Related Assets Agreement. Any deal agreed would need to be structured to ensure that this Council was not exposed to any liability without simultaneously receiving funds to meet that cost.

4.2.5 Risk: As noted at 3.2.3 the costs of dualling this part of the A43 could potentially absorb a significant proportion of the planning obligation monies and/ or related income streams that may arise from the Northampton North Urban Extension. This could leave inadequate resource to meet other

ad/committees/cabinet report template/08/01/13 legitimate needs flowing from the establishment of a new community on the edge of the Borough.

4.3 Legal

4.3.1 The pertinent legal issues are dealt with generally in the body of this report. The proposed disposal of public open space would need to be formally advertised in accordance with statutory process. Any objections would be considered by Cabinet.

4.3.2 Local authorities are generally under a duty to comply with Section 123(2) of the Local Government Act 1972 which requires that "Except with the consent of the Secretary of State a Council shall not dispose of land under this section, otherwise than by way of a short tenancy, for a consideration less than the best that can reasonably be obtained." Section 123 issues are addressed in the body of this report.

4.4 Equality

4.4.1 There are none specifically. There is no evidence to show that the sale of this land would disadvantage any particular section of the population disproportionately.

4.5 Consultees (Internal and External)

4.5.1 The views of the Ward Councillor (Councillor Capstick) were sought by email on 8th November 2012 together with views of the Councillor for the adjacent Ward (Councillor Lane). Councillor Lane has not raised any concerns. Councillor Capstick has not responded on this matter at the date of preparation of this report. In the event that any additional comments are received post publication of this report but prior to 16 January 2013, those comments would be verbally reported to Cabinet.

4.5.2 The views of all other Borough Councillors were sought by email on 5 December 2012. No concerns have been raised by other Borough Councillors at the date of preparation of this report. In the event that comments were received post publication of this report but prior to 16 January, those comments would be verbally reported to Cabinet.

4.5.3 An advertisement has been posted at the entrance to the property to indicate to members of the public that the future of the land is under consideration, including possible disposal. Any responses received will be reported verbally to Cabinet. .

4.6 How the Proposals deliver Priority Outcomes

4.6.1 Disposal of this property would:

 Help support a key strategic policy aspiration of a major partner  Generate a capital receipt to support wider corporate objectives

ad/committees/cabinet report template/08/01/13 4.7 Other Implications

4.7.1 There are none specifically.

5. Background Papers

None.

Adrian Daniell, Principal Estates Officer, 0300 330 7000

ad/committees/cabinet report template/08/01/13 Appendix 1 Land off Road (A43) at Round Spinney

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Appendix 2 General location plan of land off Kettering Road (A43) at Round Spinney

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