Waverley Borough Council Committee System - Committee Document
Meeting of the Executive held on 10/12/2007
East Street, Farnham
Waverley Borough Council
SPECIAL Executive - 10TH December 2007
EAST STREET DEVELOPMENT, FARNHAM
[Portfolio Holder for East Street: Cllr R J Gates]
[Wards Affected: All]
Note pursuant to Section 100B(5) of the Local Government Act 1972
The annexes to this report contain exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-
Information relating to the financial or business affairs of any particular person (including the authority holding that information).
Summary and purpose:
The purpose of this report is to inform Members of the outcome of the negotiations and on the outcome of the advice from our financial property advisors and quantity surveyors on a further Deed of Variation to the Conditional Contract, as authorised by the Council on 16th October 2007.
The regeneration of the East Street area of Farnham will significantly improve the environment in and around this important town centre site.
Social / community implications:
The proposed East Street scheme is a mixed development with significant affordable housing and new and enhanced facilities. The development will have significant social benefits in Farnham.
There are no direct e-government implications associated with this report.
Resource and legal implications:
The East Street regeneration has significant implications on Waverley’s finances and staff resources. The financial implications are set out in
(Exempt) Annexe 1
to this report and the report on the financial appraisal by Cluttons is attached as
(Exempt) Annexe 2
. Among the legal implications is the inherent requirement to extend the contract unconditional date. The Council has already received legal advice on this aspect from its external legal advisors which was reported to Members on 17th May 2006. [[Exempt] Appendix L referred]. This advice still holds.
1. As reported at the Executive on 4th December, at a Special Executive meeting held on 8th October 2007, Members considered a request from CNS for Landowner Sanction to a further revised scheme so that the Developer could work up and submit a planning application as soon as possible.
2. Members will recall that the last scheme that had been granted Landowner Sanction was now the subject of a planning appeal on the grounds of non-determination. The scheme considered on 8th October followed negotiation on the part of the Council in an effort to secure a scheme more in-keeping with the wishes of the residents of Farnham. The intention of CNS is to secure a planning permission for the latest scheme before the appeal on the earlier scheme is heard, thus enabling it to be withdrawn.
3. The Council meeting on 16th October resolved that:-
1. Landowner sanction on the revised scheme be granted, subject to satisfactory agreement of the financial and other outstanding matters;
2. CNS be requested to work up and submit a planning application for the revised scheme as soon as possible; and
3. Officers be authorised to negotiate a further Deed of Variation to the Contract and report back to the Council in December with the proposed terms.
4. Since that time your Officers and Consultants have been in negotiation with CNS over the required variations to the Development Agreement and, in particular, a new “Minimum Land Value”. The latter is reported at
(Exempt) Annexe 1
to this report, and, in summary, the other variations are:-
a. as the Development is now to be developed in a single phase, reference to separate “phases” has been removed. There are, however, of necessity, references to separate “elements” within the scheme.
b. Members will recall that the reference to the “long stop date” is no longer of relevance since the planning appeal was lodged. However CNS have agreed to withdraw the appeal once they are in receipt of a “Satisfactory Planning Permission”. It is therefore still necessary to refer to a date by which the contract should become unconditional. This will be 31st December 2008.
c. a “start time” and “completion time” have been agreed. The development is to start within 6 months of the Unconditional Date or the Possession Date, whichever is sooner. The Developer is then to use their best endeavours to complete within 2 years and 6 months of commencement. Members may recall CNS estimating that the reduced scheme could be delivered in two years, however allowing for lead-in times, this timetable is, in the opinion of your officers, reasonable.
d. the list of “Required Elements” has been amended to allow for the re-instatement of the area of the former bowling green to an open amenity following completion.
5. Members of the Executive will recall that, at its meeting on 4th December 2007 it was agreed that, subject to satisfactory achievement of the minimum land value, the Executive was minded to recommend to the Council that a further Deed of Variation be agreed in which:-
(a) reference to “phases” be eliminated and appropriate reference to “elements” be inserted;
(b) the contract should become unconditional no later than 31.12.08;
(c) development is to start within 6 months of the contract becoming unconditional and be completed within 2 years and 6 months of the start; and
(d) the required elements be amended to allow reinstatement of the area of the former bowling green to become an open amenity immediately following completion.
6. The Executive also asked officers to continue negotiations with CNS, with the support of the Council’s advisors, aimed at securing a minimum land value, of the amount set out in
(Exempt) Annexe 1
7. A financial appraisal has now been received which confirms the latest capital premium is considered reasonable by the Council’s advisors and in view of this, and taking into account the risk issues raised by officers, the new minimum land value represents an acceptable basis to move forward and agree the Deed of Variation with CNS.
Now that the Council’s advisors have confirmed the financial arrangements are reasonable, it is recommended that landlord sanction be approved.
There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
Comms/exec/2007-08/196 spec exec