Decision details

To sign an agreement for the development of the St John’s Road area in Epping

The Portfolio Holder for Asset Management & Economic Development presented a report on the St John’s Road development in Epping.

The Portfolio Holder reminded the Cabinet that, in June 2016, it was due to formally consider a report outlining the options available to facilitate the development of the St John’s Road Site in Epping.  Although in the event the report was withdrawn, one of these options was to seek a final negotiated purchase.  The Portfolio Holder outlined the costs and terms of a final offer that had been accepted by the developer, Frontier Estates, and by Essex County Council, subject to final approval by the County Council’s Cabinet and the Secretary of State’s consent. One aspect of the final offer was that Lindsay House would not now be transferred to the County Council, but a cash payment in the sum of £750,000 would be made in lieu; this would require the Council to agree a capital supplementary estimate. Permission was also sought to subsequently dispose of Lindsay House on the open market in order to recoup as much as possible of the payment made to the County Council.

The Portfolio Holder requested that the Cabinet should also decide whether approval for the construction of the proposed, new Repairs & Maintenance Hub at Blenheim Way in North Weald should be given now, or after the contracts had been exchanged between the District Council and County Council for the St John’s Road development and the outcome of the review of the Civic Offices being undertaken by PriceWaterhouseCoopers was known. The latter option was the one preferred by the Portfolio Holder.

The Leader of Council emphasised that the development was almost lost, and had only been revived at the last minute through the strenuous efforts of Councillors and Officers on all sides. A local Member for Epping commented that it was a relief the development was proceeding as the whole issue had taken far too long to resolve. The Cabinet was informed that a further report would be submitted outlining all of the options available for the disposal of Lindsay House. The Leader expected the development of St John’s Road and the construction of the new Repairs Hub to run concurrently.

Decision:

(1)        That the purchase of Essex County Council’s interest in the St John’s Road Site for an increased price, as advised at the meeting, be agreed;

(2)        That a substantial proportion of the additional cost would be funded by the developer, Frontier Estates, be noted;

(3)        That Lindsay House would not be transferred to Essex County Council as previously proposed, but rather a cash payment of £750,000 would be made to Essex County Council in lieu, be agreed;

(4)        That a supplementary Capital estimate in the sum of £750,000 be recommended to Council for approval to fund the alternative cash contribution for Lindsay House;

(5)        That consent be given to dispose of Lindsay House on the open market, as no operational requirement for the District Council had been identified, in order to recoup a capital receipt; and

(6)        That approval to inviting tenders and commencing the construction work for the proposed Repairs and Maintenance Hub at Blenheim Way, North Weald, in order to enable the Epping Depot to be vacated, the Council’s Housing Repairs Service and Housing Assets Team to be co-located for operational reasons, and to free up accommodation at the Civic Offices in Epping as part of the Council’s Accommodation Strategy, be delayed until after the exchange of contracts between Epping Forest District Council and Essex County Council for the proposed development of St Johns Road in Epping and the outcome of the PriceWaterhouseCoopers review of the Civic Offices was known.

Reasons for Decision:

The St John’s Road Redevelopment Scheme was an important strategic project for the District,  by virtue of the ability to deliver significant community and economic benefits, and to generate increased revenue to the Council from retained business rates and New Homes Bonus.

Other Options Considered and Rejected:

To agree to purchase the former Junior School site from Essex County Council, to cease negotiations with Essex County Council, terminate the partnership approach and renege on the jointly agreed Heads of Terms, to terminate the relationship with Frontier, the current preferred development partner and seek to jointly re-market the site, or to proceed with the compulsory purchase of the site. However, all of these options carried a degree of risk, would not meet the aspirations of the Design & Development Brief, and could require the Council to provide further subsidy for the Scheme.