Issue - meetings

The Cabinet considered a report of the Director of Corporate Resources

concerning the development proposals for the Leaders Farm site near

Lutterworth and seeking approval for the allocation of resources to support the

associated planning application, design team fees and construction costs.  A

copy of the report, marked ‘Agenda item 6’, is filed with these minutes.

 

The Director, in introducing the item, reminded members that the report set out the plans and views of the Council as a landowner and developer only.  It was recognised that part of the proposal did not accord with allocated planning use for the site, and the scheme would be subject to consideration by the relevant Planning Authority (to be confirmed), including full public consultation.

 

Mr. Rhodes CC said that he had reviewed the proposal and was satisfied that it was a good investment and gave a good rate of return.

 

RESOLVED:

 

(a)        That Option 2 for development of the Leaders Farm site as set out in paragraph 26 of the report be approved, namely

 

 i.      two Drive Thru restaurant units

ii.      a 50,000 sq ft light industrial unit (subject to successful negotiations with the proposed tenant)

iii.     further light industrial units on the remainder of the site (at an appropriate time in the future, subject to wider market assessment of the need for such units);

 

(b)    That £8.2m be allocated from the Corporate Asset Investment Fund for the development of the Leaders Farm Site as set out in (a) above;

 

(c)    That the Director of Corporate Resources, following consultation with the Cabinet Lead Member, be authorised to undertake all necessary preparatory work to enable the submission of a planning application for the proposed development.

 

(KEY DECISION)

 

REASONS FOR DECISION:

 

The development of the Council-owned land will support the delivery of both new business accommodation and income generating assets.

 

Having reviewed the various options available to the Council, Option 2 presents the best projected return for the capital invested based on current information.

 

OTHER OPTIONS CONSIDERED:

 

A further three options were set out in the report:

 

Option 1 - Develop the entire site including the Drive Thru units and the Light Industrial Units. This would require a capital contribution of approximately £7.95m.

 

Option 3 - Develop the site with the Drive Thru units, the unit for the potential occupier and dispose of the remaining land. This would require a capital investment of approximately £6.44m but would be offset by a £6m capital receipt from the occupier and possibly a capital receipt in the region of £750,000 from the sale of the remaining land.

 

Option 4 - In the event the occupier interest does not come to fruition, to develop the Drive Thru units and dispose of the remaining land. This would require a capital contribution of approximately £3m offset by a land sale of potentially £1.75m.