Decision details

1.     To approve the sale of the Robin Hood Car Park and part of the Bright Hill Car Park on a subject to planning basis to AMA Buchanan Investments Ltd, as set out in the Heads of Terms dated 12 June 2024.

2.     To approve the expenditure of approximately £100,000 of the proceeds of the sale on ground stabilisation works to bring all of the car park retained by the Council back into operation.

3.     To provide approximately £50k capital to cover the costs of the sale.

4.     Delegated authority to the Strategic Director – Finance and Resources to enter into all relevant contracts in order to complete the transaction.

Decision:

1.        To approve the sale, subject to planning permission being granted, of part of the Bright Hill Car Park and the Robin Hood car park to AMA Buchanan Investments Ltd, as set out in the Heads of Terms at (exempt) Appendix 2 to the report submitted to the Executive;

2.        To approve the allocation of up to £250,000 of the capital receipt from the sale to be spent on ground stabilisation works to bring all the car park retained by the Council back into operation.

3.        To approve £50,000 capital expenditure to cover the Council’s costs associated with the sale, to be recovered from the Purchaser upon exchange of contracts.

4.        To delegate to the Strategic Director of Finance and Resources, in consultation with the Strategic Director of Democracy, Law and People and the Portfolio Holder for Finance and Assets, authority to procure, award and enter into all relevant contracts relating to the ground stabilisation works.

Reasons:

1.        The proposed transaction will deliver a capital receipt to the Council’s Housing Revenue Account, whilst enabling the delivery of housing (including a percentage of affordable).

2.        The transaction requires the construction of a retaining wall by the Purchaser, within their ownership, that will bring 24 car parking spaces back into operation and therefore deliver an uplift in income to the Council. The proposed investment of part of the capital receipt into ground stabilisation works will further increase the number of operational car parking spaces across the remaining site.

Other options considered and rejected by the Executive:

1.        Do nothing - The Council would retain the sites for car parking. The Robin Hood Car Park & Bright Hill Car Park currently provide c.79 operational car parking spaces. Some spaces are not operational because of structural issues relating to the terracing of the car park. Income in 2023/24 was £205,300 and the forecast for 2024/25 is £246,273. The Council is also liable to pay business rates of c.£55,000 per annum.  This option does not make good use of a Council asset.

2.        The income and Capital Value could be increased by bringing a further 60 spaces back into use at Bright Hill and two at Robin Hood. However, capital works would need to be undertaken to bring the site back into full operational use to achieve this level of income (previously estimated at c.£100k-150k). This option was previously discounted due to cost.

3.        Do minimum - The Council could decide to sell the bottom section of Bright Hill (29 spaces) and Robin Hood car parks (23 spaces), with the sales condition that the developer implement edge protection remedials in the middle tier only. This would provide a capital receipt and 55 car parking spaces producing an estimated income of £171,456 p.a. This option, however, does not optimise the income potential of the retained Council car park asset.

4.        Do most – The Council could decide to sell the Robin Hood car park and the entire Bright Hill car park to ABI Ltd. or another purchaser. A greater capital receipt could be achieved.  The income generated from the car park would cease upon completion.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None