Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT

1. a modification agreement be agreed which allows the council to benefit from any uplift in value, pertaining to a change of use from B2 General Industrial, in proportion to the area of land previously sold by the council (0.18ha).
2. the Head of Property and Asset Management be authorised, in consultation with the Cabinet Member Finance, to negotiate and conclude an Agreement with the owner of Leckhampton Industrial Estate granting that owner the right, within a period of  5 years from the date of the Agreement, to call for the variation of the Covenant restricting the use of the area of land described in the report upon payment of such sum determined by the Head of Property and Asset Management as being the market value for such variation.

The Cabinet Member Finance introduced the report and explained that in 2009 Cheltenham Borough Council disposed of the freehold of a thin strip of land on the northern boundary of Leckhampton Industrial estate. This was sold subject to a covenant restricting its use to general industrial. The whole estate was now subject to potential redevelopment and the Council could benefit from the uplift in land value should it agree to modify the user covenant on this thin strip of land appropriately.

Members agreed that this was a sensible way forward.

RESOLVED THAT

1. a modification agreement be agreed which allows the council to benefit from any uplift in value, pertaining to a change of use from B2 General Industrial, in proportion to the area of land previously sold by the council (0.18ha).
2. the Head of Property and Asset Management be authorised, in consultation with the Cabinet Member Finance, to negotiate and conclude an Agreement with the owner of Leckhampton Industrial Estate granting that owner the right, within a period of  5 years from the date of the Agreement, to call for the variation of the Covenant restricting the use of the area of land described in the report upon payment of such sum determined by the Head of Property and Asset Management as being the market value for such variation.