BEDFORD BOROUGH COUNCIL DECISION NO. 1506
RECORD OF EXECUTIVE DECISION TAKEN BY AN EXECUTIVE MEMBER
This form MUST be used to record any decision taken by the Elected Mayor or an individual Executive Member (Portfolio Holder).
The form must be completed and passed to the Chief Officer Legal and Democratic Services no later than NOON on the second w orking day after the day on w hich the decision is taken. No action may be taken to implement the decision(s) recorded on this form until 7 days have passed and the Chief Officer Legal and Democratic Services has confirmed the decision has not been called in.
1. Description of decision (i) Approve the freehold disposal of land at Carlton and authorise the Chief Officer for Economic Growth and Property to negotiate detailed terms for the sale of the land, with a view to maximising the net capital receipt to The Council.
(ii) Authorise the Chief Officer for Economic Growth and Property to proceed with a sale to the Preferred Bidder, or to the Second Preferred Bidder (to be selected by The Chief Officer for Economic Growth and Property, in consultation with The Mayor), if the proposed sale to the Preferred Bidder does not proceed, or can only proceed at a significantly reduced figure.
(iii) Authorise the Chief Officer for Economic Growth and Property to agree terms for re-marketing, in consultation with The Mayor, in the event that neither the Preferred Bidder or the Second Preferred Bidder are prepared to complete the sale on acceptable terms.
2. Date of decision
30th December 2020
3. Reasons for decision
The disposal generates a significant capital receipt, and promotes self- build opportunities in Bedford Borough. The sa le will ultimately lead to an increase in the housing stock with the associated increase in Council tax revenue.
The site has been allocated for residential development in the Carlton & Chellington Neighbourhood Development Plan 2018 -2035.
4. Alternatives considered and rejected The alternative is not to sell the land. That does not generate a capital receipt or the Council, or increase housing stock within an allocated area
5. How decision is to be funded
The sale will result in a significant capital receipt for the Council
- 1 - 6. Conflicts of interest Name of all Executive members who were Nature of interest Did Standards Committee give a Did the Chief Executive give a dispensation for that conflict consulted AND declared a conflict of dispensation for that conflict of interest? (If of interest? (If yes, give details and the date of the interest. yes, give details and date of dispensation) dispensation).
The Mayor has been consulted on this decision
Signed Date: 30th December 2020 Name of Decision Taker: Mayor Dave Hodgson
This is a public document. A copy of it must be given to the Chief Officer Legal and Democratic Services as soon as it is completed.
Date decision published: 30 December 2020 Date decision can be implemented if not called in: 12 January 2021
(Decision to be made exempt from call in: NO)
- 2 - Bedford Borough Council – Report to the Mayor
December 2020
Report by Chief Officer for Economic Growth and Property
Subject: SALE OF LAND AT CARLTON
1. Executive Summary
This report seeks the Mayor’s approval to a sale of land at Carlton, being former allotment land used recently for pony grazing. The land comprises approximately 0.33 ha (0.82 acres) and has been allocated for residential development in the Carlton and Chellington Neighbourhood Development Plan 2018 -2035.
The site has been offered for sale on the open market leading to an informal bidding process. This has resulted in the selection of a preferred purchaser.
A copy of the marketing brochure, including a plan of the site, is shown in Appendix A. Details of all bids are shown in confidential Appendix B.
2. Recommendations
The Mayor is invited to:
(i) Approve the freehold disposal of the land and authorise the Chief Officer for Economic Growth and Property to negotiate detailed terms for the sale of the land, with a view to maximising the net capital receipt to the Council.
(ii) Authorise the Chief Officer for Economic Growth and Property to proceed with a sale to the Preferred Bidder, or to the Second Preferred Bidder (to be selected by The Chief Officer for Economic Growth and Property, in consultation with The Mayor), if the proposed sale to the Preferred Bidder does not proceed, or can only proceed at a significantly reduced figure.
(iii) Authorise the Chief Officer for Economic Growth and Property to agree terms for re-marketing, in consultation with The Mayor, in the event that neither the Preferred Bidder or the Second Preferred Bidder are prepared to complete the sale on acceptable terms.
3. Reason for Recommendations
The land is held within the Investment Portfolio of the Council, meaning that it is held primarily for income or capital maximisation.
The site has been identified as a potential residential development site for up to 10 houses by The Local Parish Council. The present occupier has been informed that the Council will require vacant possession in advance of a sale, and it is believed that he has identified alternative premises.
It will be a condition of the sale that the purchaser will reserve at least one plot for a ‘design and build’ residential dwelling.
The method of disposal ensures the site has been fully marketed, generates a significant capital receipt, and promotes self- build opportunities in Bedford Borough. The sale will ultimately lead to an increase in the housing stock with the associated increase in Council tax revenue.
4. Key Implications
4.1 Legal Issues
The Council has a statutory duty under Section 123 of the 1972 Local Government Act to obtain best consideration from property disposals. The site has therefore been offered for sale on the open market and an informal bidding process followed, to ensure best value in terms of capital receipts secured. 4.2 Policy Issues
The Council’s approved Corporate Asset Plan requires that, in line with Government guidance, all assets not required to meet the Council’s service priorities or statutory needs will be disposed of for best consideration. This policy also directly assists the Council’s Capital Investment Strategy by providing capital receipts to meet direct funding needs for approved Capital investment schemes. The Corporate Asset Plan specifically requires that surplus land assets are included in a planned disposal programme to directly fund the Council’s Capital Investment programme.
The Council also has an obligation under the Self-Build and Custom Housebuilding Act 2015 to promote ‘Self-Build’ opportunities within the Borough. As a result, the sale contract will require the purchaser to reserve at least one plot as a ‘self – build plot’.
4.3 Resource Implications
The sale of the site will provide the predicted capital receipt as shown in confidential Appendix B.
The capital sum offered is conditional on the purchaser obtaining full planning consent.
The site is identified in the Capital Receipts programme as an asset for disposal.
The Council engaged external land sales consultants, appointed through a tender process, to advise and to manage the marketing process. The fees and other marketing costs will be met from within the existing Revenue Budget allocated for property disposals, and are not expected to exceed £10,000 for this one sale.
In-house Legal resources will be used to exchange and complete contracts.
4.4 Risk Implications
• If the proposal is not approved the Council will not secure the capital receipt. • The Preferred (highest) Bidder may not complete the transaction due to failure to procure planning consents. There are however a number of other bidders who would be expected to proceed with a purchase at a reduced price.
• Should planning conditions differ significantly from the scenario assumed in the conditional offer, the offer price may reduce to below the level proposed by the second or third highest best bidder. In such circumstances, negotiations will be sought with a relevant Under-Bidder.
• The Preferred Bidder may withdraw or seek to re-negotiate after due diligence. Should the Preferred Bidder withdraw, or should they reduce their offer to a level deemed to be unacceptable by the Chief Officer for Economic Growth and Property, negotiations will be sought with a relevant under-bidder.
4.5 Environmental Implications
The site is part of the Council’s investment estate. It is presently let out for pony grazing. It is not designated as Protected Open space, and has been identified as a potential residential development site in the relevant Parish Neighbourhood Development plan.
4.6 Equality Impact
A relevance test for equality has been completed. The equality test determined that the activity has no relevance to Bedford Borough Council’s statutory equality duty to eliminate unlawful discrimination, advance equality of opportunity and foster good relations. An equality analysis is not needed.
5. Details
5.1 A Copy of the sales brochure is attached in Appendix A. The brochure describes the site, references The Neighborhood Plan Allocation, and details the tender process.
5.2 All tenders were opened on 20 November 2020. Details of all offers received are shown in Confidential Appendix B. All realistic bids are conditional on bidders obtaining detailed planning. The recommended bid is the highest offer received. 5.3 The Preferred Bidder has secured funding and will attempt to follow the proposed scheme shown in the brochure, to include 9 houses, including one plot reserved as a self-build plot. A deposit of 10% will be requested on exchange of conditional contracts.
5.4 The bid made by the second highest bidder indicated that the bidder would build 9 self-build or custom build units. However the bid was conditional on being permitted to build to 2.5 storeys, regarded as unlikely by the Council’s professional advisors. When challenged, no comfort was given that such a height would be permitted. The bidder subsequently withdrew that element of conditionality from the bid, however installed an additional element – that the purchase would be conditional on the forward sale of two units. Having been advised by their professional advisers, Officers do not recommend proceeding with such a condition.
5.5 It is recommended to agree heads of terms and to instruct the Council’s Legal Services to prepare contracts for exchange, and to subsequently complete the sale as soon as possible.
5.6 As detailed above, the highest offer is recommended for acceptance as it is deemed to represent the best consideration and as such satisfy the requirements of S123 of The Local Government Act 1972.
6. Summary of Consultations and Outcome
The following Council Departments or Officers and/or other organisations have been consulted in preparing this report.
• Ward Councillor • Carlton with Chellington Parish Council • Legal Services • Finance Business Partner
No adverse comments have been received.
Report Contact Officers: Margaret Birtles, Manager for Asset and Estate Management E-mail: margaret.birtles@bedford,gov,uk
File Reference: None
Previous Relevant Minutes: None
Background Papers: N/A
Appendices: A – Brochure including plan B – List of bids (CONFIDENTIAL - REMOVED) APPENDIX A
Land adjacent to 83 The Causeway Carlton, Bedfordshire MK43 7LU - For sale by Informal Tender
D
Potential Development Site extending to c.0.82 acre in a non-estate, sought after village location. Land adjacent to 83 The Causeway, Carlton, Bedfordshire MK43 7LU
Site Frontage Summary
➢ Potential development site for a scheme of up to 10 dwellings.
➢ Open aspect to the rear overlooking open fields.
➢ Available unconditional or on a subject to planning basis.
➢ The total site area extends to 0.82 acre (0.33 ha).
Location
➢ Carlton is a highly desirable north Bedfordshire village adjacent the River Great Ouse seven miles north west of Bedford. Bedford is conveniently situated for access to the General View of the Plot A421 dual carriageway linking the A1 and M1 motorways and is 14 miles to the east of Milton Keynes and 25 miles to the west of Cambridge. Bedford main line railway station has fast, frequent trains to London St Pancras International.
Planning
➢ The land is classed as an ‘opportunity development site’ in the Carlton and Chellington Neighbourhood and Development Plan 2018 – 2030 (copy available on request) and is expected to deliver up to 10 dwellings.
➢ Local plan requirement for 30% affordable housing on schemes of 10 or more dwellings or more than an accumulative total of 1,000m2 / 10,760 ft2
➢ A CIL payment will be payable to Bedford Borough Council at the rate of £100 / m2 + indexation Land adjacent to 83 The Causeway, Carlton, Bedfordshire MK43 7LU
Layout
➢ A sketch layout is attached (for indicative purposes only) detailing 9 private Site Frontage dwellings (including one self-build plot). Following review of the Neighbourhood Plan (particularly page 22, Policy CC5), prospective purchasers must decide on an appropriate unit mix for their schemes (possibly all private or a mix of private & affordable) and provide a supporting sketch layout with any offer submitted which must include one self-build plot
➢ Bedford Council maintain a database of self-build applicants
Access
➢ A new access(s) will need to be created direct from The Causeway. Drainage/Services The Causeway (Street Scene) ➢ All utilities are thought to be available in The Causeway, but prospective purchasers should make their own enquiries with respect to availability and cost of connections.
Existing Wayleaves, Easements and Rights of Way:
➢ The land is to be sold subject to and with the benefit of all wayleaves, easements and rights of way whether or not mentioned in these details. Tenure
➢ The land is to be sold freehold. It is currently subject to a grazing licence but will have vacant possession on completion. Land adjacent to 83 The Causeway, Carlton, Bedfordshire MK43 7LU
Promap Land adjacent to 83 The Causeway, Carlton, Bedfordshire MK43 7LU
Indicative Layout Land adjacent to 83 The Causeway, Carlton, Bedfordshire MK43 7LU
Terms Location Plans
➢ Sale by Informal Tender. Conditional or Unconditional offers are invited.
➢ Informal Tenders are to be submitted on the enclosed Informal Tender form in a sealed envelope clearly marked “Informal Tender for Land at The Causeway, Carlton” by 12 noon on Friday 20th November.
➢ Tenders are to be emailed to [email protected]
➢ Conditions of sale:
(1) The purchaser is to exchange contracts within 20 working days from when their solicitors receive draft contract documentation.
(2) The purchaser is to pay a 10% deposit on exchange of contracts. If the contract is conditional, then this is to be refundable if planning permission is refused by the local planning authority and upheld in any subsequent appeal.
(3) If conditional, the purchaser is to submit a suitable planning application within six weeks from exchange of contracts.
(4) Legal completion is to take place within 20 working days from exchange of contracts if unconditional or from receipt of planning permission if conditional.
Viewings
Strictly by prior appointment via Compass.
Contact
Compass Land and Development on 01234 351577 Compass Land & Development for themselves, and for the vendors of the land, whose E: [email protected] agents they are, give notice that; (A) These particulars are produced in good faith, but are set [email protected] out as a general guide only and do not constitute any part of a contract; (B) No person in the 14-16 Bromham Road, Bedford, MK40 2QA employment of Compass Land and Development has any authority to make or give any representation or warranty what so ever to the land October 2020. These details are W: www.compasspropertygroup.co.uk presented subject to Contract and without prejudice.