Issue - meetings

Report of the Cabinet Member Development and Safety

The Leader introduced the report on the property matter in the absence of the Cabinet Member Development and Safety.

Members asked questions which were answered by the Leader and the Managing Director Place and Growth and then debated the report in full.

RESOLVED (unanimously)

To adopt the recommendations.

RESOLVED (unanimously)

1. That a budget allocation of £44,000,000 be approved to be funded via prudential borrowing, for the purchase of land that forms part of the allocated land as set out in the JCS located at Fiddlers Green. This will include provisions for :

i)             £40,000,000 for the purchase of the land, including fees/charges etc

ii)            £1,000,000 to fund project management procurement of professional services including legal, planning and real estate and the procurement of a master developer as well as other related activities to support the delivery and development of the project

iii)           £3,000,000 for potential enabling works or infrastructure costs if required.

2. That it be noted that under the authority granted by Council on 23 July 2018 for the Appropriate Officer to spend against the programme budget, the Managing Director Place and Growth, will undertake the necessary due diligence and financial assessment and modelling and prepare a report for Cabinet setting out the case for purchase prior to the exchange of contracts, or at a relevant point as appropriate.

On behalf of the Cabinet Member Development and Safety the Leader

introduced the report. He made reference to the pre-Council briefing Members

had received and the decision made by Council on 23 July 2018 to approve the

allocation of £250k towards the creation of a multi-disciplinary team to consider

how to maximise the economic and social benefit for Cheltenham and the wider

region by realising the growth potential of the cyber industry as a commercial

anchor for the West Cheltenham urban extension.

The Leader explained that the council had some concerns regarding the speed

of progress and vision of the existing promoter of the site. West Cheltenham

was key for the town and a vital site for the future. However, he stressed that

the process of acquiring a strategically important site was not risk free. This

represented a massive opportunity for the benefit of the town as a whole.

Council approval was now being sought to authorise a budget for the purchase

of land at West Cheltenham and the progression of the programme to bring

forward a comprehensive development of the wider strategic allocation

including these land interests. The actual purchase would be progressed only

following Cabinet approval of a report informed by detailed due diligence,

financial modelling and risk analysis.

Approval by Council was therefore being sought on the following:

i) Purchase price of £40 million for the purchase of the land including fees

and charges etc.

ii) £1 million to fund project management procurement of professional

services including legal, planning and real estate and the

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Draft minutes to be approved at the next meeting on Monday, 25 March 2019.

procurement of a master developer as well  ...  view the full minutes text for item 16