Issue - meetings

Decision:

(1)       That the urgency decision of the Director of Resources to transfer the sum of £5.557 millionfrom the provisional capital programme to the approved capital programme be ratified to enable the completion of the design and construction of phase four of the Midleton Industrial Estate redevelopment, as detailed in the report submitted to the Executive.

(2)        That the Joint Strategic Director (Place) be authorised, in consultation with the Lead Councillor for Resources, to enter into such contracts as are necessary to enable the transactions to be completed within the allocated budget.

Reason(s):

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

Other options considered and rejected by the Executive:

None.

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

No.

The report was introduced by the Leader of the Council in the absence of the Lead Councillor for Resources.

The Midleton Industrial Estate comprised around 5.7 acres within the Council’s freehold ownership and the Executive had approved a business case for its redevelopment on 24 January 2017.

The Estate was divided in accordance with the long leaseholds previously granted but Officers have been pursuing a phased development of the Estate in line with when existing leases have expired.

The Executive considered a report outlining progress with the delivery of the project, including the current spend, the works completed to date as well as the remaining scope of works to be delivered during 2022-23.  The work had been tendered and awarded to Francis Construction Limited.

The Executive was asked to approve the transfer of £5,557,000 from the provisional capital programme to the approved capital programme to complete the fourth and final phase of the redevelopment. It was anticipated that when the final phase was complete the site would raise over £1 Million per year in income for the Council.

There would be a additional check to ensure that the necessary power supplies were in operation prior to the commencement of Phase 4 as there had been an issue previously which had delayed the project.

Thereafter, the Executive was content to,

RESOLVE:

(1)      That the urgency decision of the Director of Resources to transfer the sum of £5.557 millionfrom the provisional capital programme to the approved capital programme be ratified to enable the completion of the design and construction of phase four of the Midleton Industrial Estate redevelopment, as detailed in the report submitted to the Executive.

(2)       That the Joint Strategic Director (Place) be authorised, in consultation with the Lead Councillor for Resources, to enter into such contracts as are necessary to enable the transactions to be completed within the allocated budget.

Reason(s):

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

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.

The Executive had approved a business case for the redevelopment of the Midleton Industrial Estate on 24 January 2017, as part of the 2017-18 capital programme. The Executive considered a further report which outlined progress with the delivery of the project, including the current spend and the works completed as well as the remaining scope of works to be delivered during 2019-20 and 2020-21.  The Executive was asked to approve the transfer of £5,500,000 from the provisional capital programme to the approved capital programme in order to complete phases two and three of the redevelopment.

The Executive RESOLVED:

(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  report submitted to the Executive. 

(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:

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.