(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
The following 4 options were considered:
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 2 - Develop the site with the Drive Thru units, the
unit for the purchasing consortium occupier (subject to successful
negotiations) and the remaining site with light industrial units, subject to
demand. This would require a capital contribution of approximately £8.2m but
would be offset by a £6m capital receipt from the consortium occupier’s unit
sale.
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 the Council could 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.