Decision details

Approval to move the remaining Provisional funds for the above project, in the sum of £5.557m, to the Approved capital budget. This is to facilitate the fourth and final phase of the redevelopment works, the contract for which has recently been tendered and awarded.

The Executive agreed:

(1)  That the sum of £5.5 million be transferred from the provisional capital programme to the approved capital programme to enable the continuation and completion of the design and construction of phase two and three of the Midleton Industrial Estate redevelopment, as detailed in the committee report. 

(2)  That the Corporate Property Manager, in consultation with the Lead Councillor for Finance and Assets, be authorised to progress the design and construction of phase two and three. 

Reason for Recommendation:

To progress the next phases of redevelopment of Midleton Industrial Estate to enhance both the capital value and rental income of the Council’s property holding.

Options considered:

(1)  There is the option to do nothing in which case the existing units continue to deteriorate costing the Council further money to comply with lease terms and statutory requirements.  The units are reaching the end of their economic life and will require significant investment if the Council wishes to re-let the vacant properties.  The current outdated units are not attractive to prospective tenants and should the Council wish to re-let them, the level of rent to be expected will be very low. 

(2)  The only other option is to demolish the existing buildings and simply sell off the sites. This would provide a capital receipt for the Council rather than much needed income. It is also unlikely to attract a better return than developing the site internally.

(3)  A sale would also mean a loss of control of the site. A private developer may not choose to provide much needed small industrial units. In addition, their design may not be as sustainable/energy efficient as the Council has planned.  

Conflicts of interest:

None.