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Land-Lenziemill Road, Blairlinn Industrial Estate, Cumbernauld

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Land-Lenziemill Road, Blairlinn Industrial Estate, Cumbernauld NORTH LANARKSHIRE COUNCIL REPORT To: POLICY & RESOURCES (PROPERTY) Subject: SUBCOMMITTEE LAND AT LENZIEMILL ROAD, From: HEAD OF PROPERTY SERVICES BLAlRLI NN INDUSTRIAL ESTATE, CUMBERNAULD I Date: 28 January 2011 Ref: ABNORMALS CLAIM I DMcCIX8893769M14 I 1. INTRODUCTION 1.I The purpose of this report is to seek Committee approval for an adjustment to the disposal terms of land at Lenziemill Road, Blairlinn Industrial Estate, Cumbernauld to reflect abnormal development costs. 2. BACKGROUND 2.1 Committee approved a report at its meeting on 6 November 2007 authorising the disposal of land extending to 0.628 hectares or thereby to Aspen Solutions Limited. The agreed price was f 140,000. 2.2 It was noted in the report that Aspen Solutions Limited had still to undertake intrusive site investigation works and if an abnormal costs claim was submitted to the Council as a result of the investigations, a further report would be submitted to a future Sub- committee. 2.3 The purchasers are seeking to re-locate to this site and to construct a new factory building with associated offices and car parking. The company currently employs 24 staff and this expansion will create 18 new jobs. 3. DESCRIPTION 3.1 The site extends to 0.628 ha (1.55 acres) or thereby and forms an irregular area of open space land to the south of Lenziemill Road. The ground is located in Blairlinn Industrial Estate, Cumbernauld adjacent to the Greenfaulds Park and Ride Station. 3.2 The site is generally level with a gentle slope from Lenziemill Road towards the south and east boundaries. It is currently maintained open space and covered in rough grass with some shrubbery. The boundary line to the south sits at the top of an embankment which runs steeply down to the two drainage ponds and the Luggie water valley. 3.3 The site is currently zoned for industrial use. 4. CURRENT POSITION 4.1 Aspen Solutions Limited has obtained planning permission for the proposed development on the site. However, a condition of the planning permission was a requirement to carry out road widening works to the public highway adjacent to the site. This condition is not one that would be expected as a standard development requirement and has had an impact on the costs of undertaking the development. I:\Value-acq-dispD0 1 l\repjan\lenziemill rd-dmc.doc 4.2 Aspen have recently invited tenders for these road works and the lowest tender received was for the sum of f 126,236.63. 4.3 The costs have been reviewed by the council’s Roads & Transportation team and they have confirmed that the costs provided are reasonable given the extent of the works being proposed. 4.4 Following discussions with the purchaser and notwithstanding the claim submitted as detailed in paragraph 4.2 above, it has been provisionally agreed that the purchase price will be reduced by f 100,000to reflect the additional costs associated with this development. It is recommended that the purchase price is adjusted to f40,000to reflect these costs. 5. CORPORATE CONSIDERATIONS 5.1 The proposed price adjustment is in line with Section 4 of the Land and Property Sales Policy, approved by the Policy & Resources (Property) Subcommittee on 3 November 2009. 5.2 The disposal would generate a capital receipt of f40,000. 6. RECOMMENDATIONS 6.1 It is recommended that Committee approve the price adjustment in relation to the abnormal development costs for land at Lenziemill Road, Blairlinn Industrial Estate, Cumbernauld on the terms outlined above. 6.2 All other terms and conditions to be adjusted by the Head of Property Services. IAN NISBET Head of Property Services Members seeking further information on the contents of this report are asked to contact lan d&!- Nisbet, Head of Property Services, on 01236 616305. I:\Value-acq-dispY201 l\repjan\lenziemill rd-dmc.doc RS Property Services .
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