Agenda item

(Asset Management & Economic Development) To consider the attached report (C-018-2015/16).

(1)        That a Deed of Release of the 1952 and 1955 Covenants be issued by the Council, consistent with the previous Deeds of Release on the land at Epping Forest College, on the  following basis:

            (a)        A Deed of Release of the 1952 and 1955 Covenants consistent with the previous deeds of release is executed by the Council and is held in escrow pending written         confirmation from the College’s Solicitors to the Council that:

            (i)         the College’s application for [outline] planning permission for the      development of its new Sports, Health and Well-Being facility for the benefit of the College’s students and the wider community has been submitted to the           Council; and

            (ii)        Contracts for the College’s sale of the Middle Site and part of the Playing Fields for residential development, conditional upon execution of such Deed of Release of the 1952 and 1955 Covenants, have been signed and are held in escrow pending execution and delivery of the said Deed of Release; and

(2)        That the pre-emption rights of the Council not be exercised on the land.

The Portfolio Holder for Governance & Development Management presented a report on the release of restrictive Covenants at Epping Forest College.

The Portfolio Holder stated that the Council had received a submission from the Solicitors to Epping Forest College, seeking the release and/or modification of two restrictive Covenants and a right of pre-emption in favour of the Council, which currently binded the College’s Estate. In summary, the release of the Covenants was requested to enable the College to fulfil the aspirations of their accommodation strategy; namely, to invest in new educational and public/community well-being facilities. The College had suggested that, by allowing surplus land to be sold for residential development (which would include affordable housing), this would generate capital to be utilised in the provision of further enhanced educational facilities and a new sports centre, for use by both college students and the local community. This would serve to compensate for the loss of the Debden Community Association Sports Centre and meet a deficiency in indoor dry sports provision identified in the Council’s adopted Leisure and Cultural Strategy.

The Portfolio Holder reminded the Cabinet that the Council had previously released restrictive Covenants at the Epping Forest College site, to facilitate residential development, a residential care home, and the provision of student accommodation. On those occasions, it was to generate funds to facilitate further educational provision and stabilise the College’s financial position.

It was highlighted to the Cabinet that the requirement for Primary School places in the area had increased since the last Covenants had been released, and that it was short-sighted of Essex County Council to not show any interest in the site at all. The Portfolio Holder reassured the Cabinet that lengthy discussions had been held with Essex County Council - hence the delay in submitting the report - who had now confirmed that they did not require the site.

Decision:

(1)        That a Deed of Release of the 1952 and 1955 Covenants be issued by the Council, consistent with the previous Deeds of Release on the land at Epping Forest College, on the  following basis:

            (a)        A Deed of Release of the 1952 and 1955 Covenants consistent with the previous deeds of release is executed by the Council and is held in escrow pending written         confirmation from the College’s Solicitors to the Council that:

            (i)         the College’s application for [outline] planning permission for the      development of its new Sports, Health and Well-Being facility for the benefit of the College’s students and the wider community has been submitted to the           Council; and

            (ii)        Contracts for the College’s sale of the Middle Site and part of the Playing Fields for residential development, conditional upon execution of such Deed of Release of the 1952 and 1955 Covenants, have been signed and are held in escrow pending execution and delivery of the said Deed of Release; and

(2)        That the pre-emption rights of the Council not be exercised on the land.

Reasons for Decision:

To generate capital to be utilised in the provision of further enhanced educational facilities and a new sports centre, for use by both the College’s students and the local community.

Other Options Considered and Rejected:

To not consider the release of the Covenants and allow the matter to be referred by the College to the Land Tribunal.  However, it would be likely that the tribunal would agree to the release. 

To exercise the Council’s pre-emption rights on any piece of land and seek to develop the site(s) for its own Council Housebuilding programme. However, any residential scheme, promoted by the College, would in all likelihood involve an element of affordable housing in accordance with current Council Policy.