(Exempt under Paragraphs 3 and 10 of Schedule 12A.)
Minutes:
(Mr. N. J. Rushton CC, having declared a disclosable pecuniary interest in the matter, left the meeting whilst this item was considered.)
The Cabinet considered a joint report of the Director of Environment and Transport and Director of Corporate Resources which sought approval for the County Council to enter into an agreement with Measham Land Company to extend the option for the County Council to grant an easement providing a right of access into their development land across County Council owned land. A copy of the report, marked ‘Agenda item 20’, is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Schedule 12A of the Local Government Act 1972.
RESOLVED:
a) That the Director of Corporate Resources in consultation with the Director of Environment and Transport and the Director of Law and Governance be authorised to enter into the extension agreement with Measham Land Company to extend the option granted by the original Option Agreement for a further 10 years, ending 31 July 2031;
b) That it be noted that the Director of Environment and Transport in consultation with the Director of Law and Governance and the Director of Corporate Resources may resume negotiations and enter into a revised Option Agreement with Measham Land Company, based on the principles as set out in the report and in line with existing delegations and approvals given by the Cabinet in July and November 2015.
REASON FOR DECISION:
The original Option Agreement of 31 July 2000 granted Ideal Country Homes an option to enter into an easement providing a right of access into a development site lying south-east of the A42 Trunk Road, Measham (the Development Site) subject to Ideal Country Homes obtaining planning permission for development of the Development Site. The freehold ownership of the Development Site is now vested in Measham Land Company, a private housing developer, (a sister company of Ideal Country Homes), and Measham Land Company has obtained planning permission to build up to 450 residential dwellings on the Development Site which incorporates 1.1km of canal into the proposed Measham Wharf. The extension agreement assigns the benefit of the original Option Agreement to Measham Land Company.
The County Council, which owns the land which incorporates the access to the Development Site, has granted an option for an easement in order for the developer to access the site via an Option Agreement which expires on 31 July 2021. Entering into an extension to the Option Agreement makes commercial sense to the County Council because of the significant value of the easement providing access to the site in the event that Measham Land Company develops the land and should protect the County Council’s interests in the event of any such development. It will also assist the County Council should it wish to claim compensation from HS2, if the development of the canal in this area should be affected by the construction of HS2 in future.
It is expected that the new Option Agreement will provide a better outcome for the County Council, relative to the existing agreement, in terms of value for money. The new agreement would result in Measham Land Company being responsible for the construction of a length of canal of a higher value (in terms of capital cost) than the monetary value of the existing Option Agreement. It also offers additional benefits such as ongoing management of the proposed section of canal at no cost to the Authority. In July 2015 the Cabinet authorised officers to negotiate a new Option Agreement and for the Director of Environment and Transport in consultation with the Director of Corporate Resources and County Solicitor, to enter into a new agreement subject to the satisfactory conclusion of negotiations, and resolution of related issues. Furthermore, in November 2015 the Cabinet granted an exception to the County Council’s Contract Procedure Rules to enable the Director of Environment and Transport to negotiate the final terms of and enter into a revised option agreement with the Measham Land Company Limited.