Decision details

The Portfolio Holder for Asset Management & Economic Development presented a progress report on the development of the Epping Forest Shopping Park.

The Portfolio Holder informed the Cabinet that the Council’s initial offer to purchase Polofind’s interest in the site had been rejected, and a higher, counter offer had been made by Polofind to purchase the Council’s interest in the site. It was proposed that the counter offer from Polofind should be rejected, and authority delegated to Officers to make a further offer to Polofind based upon the latest appraisals and advice from the Council’s professional advisors.

The Cabinet noted that this could be a negotiating ploy, whereby with its counter offer Polofind was informing the Council of the level of bid it would need to make in order to purchase Polofind’s interest in the site. The Cabinet was agreed that the offer from Polofind should be rejected, as the Council’s stated aim was to use capital expenditure to generate future revenue income, and that Officers should make a further offer to Polofind for their interest in the site.

The Portfolio Holder advised the Cabinet on the progress with the concurrent negotiations concerning the Joint Venture Agreement with Polofind Limited. One issue that had been highlighted during these negotiations was the need for the Council to vacate the Depot in Langston Road, by 31 March 2016 at the latest, if the Shopping Park was to be open by the target date of October 2016.

Decision:

(1)        That the response of Polofind Limited to the Council’s initial offer to purchase their interest in the site at Langston Road, Loughton be noted;

(2)        That the counter offer from Polofind Limited to purchase the Council’s interest in the site be declined;

(3)        That Officers be authorised to make a further offer to Polofind Limited to purchase their interest in the site, such offer to be determined on the basis of the latest appraisals and advice from the Council’s professional advisors; and

(4)        That progress on the Joint Venture documentation, and the need to achieve vacant possession of the Langston Road Depot by 31 March 2016, be noted.

Reasons for Decision:

To appraise the Cabinet on the current progress with the project.

Other Options Considered and Rejected:

To accept the counter offer from Polofind Limited to purchase the Council’s interest in the site and consequently not make a further offer to purchase Polofind’s interest. However, this would contravene the Council’s stated aim to use capital expenditure to generate future revenue income.