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That the Chief Executive and Leader Are Allerdale Borough Council Derwent Forest Task Group – 11 October 2007 Derwent Forest Progress Report The Subject of the Decision To agree to the Terms and Conditions of the North West Development Agency proposal to support Allerdale Borough Council and Cumbria County Council to jointly acquire and hold the former RNAD Broughton Moor site The Reason for the Decision To meet the deadline set out by the MOD, both Councils need to formally agree the acquisition and holding arrangements. Recommendation That the Chief Executive and Leader are recommended to agree to the terms of the NWDA offer outlined in the report and to instruct officers to formally progress with the acquisition of the site with the County Council. Environmental Implications The proposal will result in 450 Ha of reclaimed derelict land in Allerdale. Community Safety Implications Council will assume responsibility for continuing to maintain the site as a closed site. Financial Implications 1) All transfer and holding costs will be covered by the North West Regional Development Agency for 3 years and the Agency will either sell on the site directly to the private sector or buy back the residue of the site from the Councils should a development with the private sector not proceed. 2) There is provision in the Councils budgets amounting to some £350,000 to cover initial costs of acquisition and holding the site. These costs will now be met from the NWDA however officers recommend the budget remains to underwrite any unforeseen holding or development costs for three years. Human Rights Implications None Employment Implications In the long term, the development of the site will enable significant job opportunities for local residents. Health & Safety Implications Health and Safety issues will be mitigated by an agreed remediation or development proposal for the site. The key risks associated with this proposal relate to the long term maintenance liabilities that may fall to the County and District Councils should the development not go ahead or the site not disposed of after the initial 3 year period. These liabilities have been assessed in a due diligence report commissioned by the NWDA and are assessed as low risk provided actions are taken to mitigate them. These actions will be funded from support from NWRDA proposed in the report. Wards Affected Seaton, Camerton, Great Clifton, Broughton, Broughton Moor, Ewanrigg. The Contribution this Decision would The Project will deliver Strategic Priority R1 make to the Council’s Key Aims of the Council’s Corporate Improvement Plan. Derwent Forest will create investment and jobs to support economic, social and environmental improvements in Allerdale Portfolio Holder Councillor Margaret Jackson Councillor Stuart Moffat Lead Member of Staff David Martin Director of Partnerships and Community Tel: (01900) 702773 Email: [email protected] (A detailed listed of implications is appended to the report) 1.0 Introduction Members may recall that the former Broughton Moor Royal Naval Armaments Depot (RNAD) was offered to Allerdale Borough Council, by the Ministry of Defence, in April 2000. Since that time, a series of studies have been carried out into the condition of the site, its ecology, archaeology etc. along with the possible extent of private sector interest. Ongoing discussions with Cumbria Vision, North West Regional Development Agency (NWRDA), West Lakes Renaissance and local people have occurred to try and get the site regenerated and partners have been trying to secure the necessary final funding approval from NWRDA since their agreement in principle to support the scheme in July 2005. The Derwent Forest Task Group agreed in August 2006 that the site could be purchased in Partnership with Cumbria County Council and recommended to Executive and Council that “the Borough Council enter an agreement with Cumbria County Council to jointly own the Derwent Forest site to share risk and support the development of the site.” There was a further report to Council on 27 June 2007 Council where it was agreed that: 1) Council approves the purchase of the Derwent Forest site jointly with Cumbria County Council on terms and conditions to be agreed by the Chief Executive in consultation with the Leader. 2) It is also recommended that the purchase only proceeds if satisfactory arrangements can be made for the provision of sufficient funding by Northwest Regional Development Agency for the future management and maintenance of the site in accordance with an agreed Heads of Terms with the NWDA. Such Heads of Terms to be agreed with the Chief Executive and the Leader This report brings Members up to date on current progress on the terms of the agreement with the NWDA. 2.0 Content The NWDA have recently written to Allerdale Borough Council and Cumbria County Council outlining the basis upon which they are prepared to support the Councils to acquire the site from MOD and for them to hold the site for a three- year marketing period. The key elements of Heads of Terms of the offer are: • NWDA to fund the holding and marketing costs to achieve the regeneration of the site. • If at the end of the three-year period, part or all of the site has not been sold for regeneration purposes then it will be held by the partners for a further year, with NWDA paying the holding costs, and marketing for disposal to the highest bidder. • If at the end of that period part or the whole of the site is still in our joint ownership then it will be acquired from the partners by NWDA. The effect of the above allows the local authorities a three-year period to achieve the regeneration of the site and a further period of one year for us to divest our interest and hence further liabilities. Our financial exposure will be covered by NWDA who are currently seeking approval for the funding of holding costs of £1m to cover site holding costs, the marketing of the site and cover for off site environmental liabilities arising from holding the site under the Environmental Protection Act. On this latter point, the Council has for sometime made provision in budget for these costs and therefore there is a potential saving to be made to the Council. The NWDA have addressed the outstanding issues raised in the report to Council on the 27 June and their proposals limit the financial liabilities to the Council(s) and on that basis are acceptable. The funding package for this will be agreed by the NWDA on 22 October. 3.0 Conclusion The Derwent Forest Scheme is recognised as a priority project in the West Cumbria “Energy Coast” Masterplan, and has been a priority project for the County Council for some years. NWDA now require the identification of a private sector partner to lead on the project prior to committing funds for the site’s remediation and redevelopment. The current owner of the site, MOD, has extended the deadline for the sale of the site until 31 October 2007. It is, therefore, proposed that the County Council and Allerdale Borough Council jointly acquire the site to facilitate the identification of a private sector partner. Officers recommend that the Chief Executive and Leader agree to the terms of the NWDA offer outlined above and to formally progress with the acquisition of the site with the County Council. David Martin Director of Partnerships and Community Report Implications Please delete where applicable. Community Safety N Sport N Financial Y Leisure N Legal N Tourism Y Social Inclusion N E-Government N Human Rights N North West Regional Y Youth Issues N European N Ethnic Minority Issues N National N Older People Issues N Partnership Y Disability Issues N Heritage/Culture N Employment (external to the Council) Y Planning Policy N Employment (internal) N Enforcement N Environmental/sustainability N Transport N Environmental/visual Y Asset Management Y Health N Health & Safety Y Is this a statutory recommendation? N Is this a key decision? Y Has a risk assessment been undertaken? N Wards affected - Seaton, Camerton, Great Clifton, Broughton, Broughton Moor, Ewanrigg. Background papers - None .
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