Issue - meetings

(Asset Management & Economic Development Portfolio Holder) To consider the attached restricted report (C-073-2016/17).

(1)        That the Terms of the Agreement for the Lease with Next Holdings Limited, as attached at Appendix 1 of the report, be agreed in principle and the Chief Executive, Director of Neighbourhoods or Director of Resources (in consultation with the legal advisors and the Asset Management & Economic Development Portfolio Holder) be authorised to make any final amendments and enter into the lease;

(2)        That delegated authority be granted to the Chief Executive, Director of Neighbourhoods or Director of Resources (in consultation with the legal advisors and the Asset Management & Economic Development Portfolio Holder) to waive the Council’s Financial Regulations to authorise them to enter into further leases with tenants at the Epping Forest Shopping Park in the future, on the condition that they too were in accordance with the previously agreed development appraisal and planning conditions;

(3)        That delegated authority be granted to the Chief Executive, Director of Neighbourhoods or Director of Resources (in consultation with the legal advisors and the Asset Management & Economic Development Portfolio Holder) to enter into documentation associated with the Leases; 

(4)        That the Chairman of Council be requested to waive the Council’s Call-in procedure with respect to this and future Leases to reflect the timescales required to achieve a September 2017 opening; and

(5)        That Procurement Rules 18.2(b) be waived to allow for this Lease and future Leases to be signed rather than sealed.

The Portfolio Holder for Asset Management & Economic Development presented a report regarding the authority to enter into lease agreements with retail tenants for the Epping Forest Shopping Park.

The Portfolio Holder apologised for the tabling at the meeting of revised recommendations for the report, which sought the approval of the Cabinet to enter into a lease with Next Holdings Limited for an anchor store at Epping Forest Shopping Park. In addition, the Portfolio Holder also sought extended delegated authority for the Chief Executive, Director of Neighbourhoods or Director of Resources, in consultation with the Asset Management and Economic Development Portfolio Holder, to enter into future lease arrangements and associated documentation with other retail tenants at the Shopping Park – which would be signed rather than sealed. The Chairman of Council was requested to waive the call-in arrangements for this and future leases given the timescales required to achieve an opening of Epping Forest Shopping Park in September 2017.

Decision:

(1)        That the Terms of the Agreement for the Lease with Next Holdings Limited, as attached at Appendix 1 of the report, be agreed in principle and the Chief Executive, Director of Neighbourhoods or Director of Resources (in consultation with the legal advisors and the Asset Management & Economic Development Portfolio Holder) be authorised to make any final amendments and enter into the lease;

(2)        That delegated authority be granted to the Chief Executive, Director of Neighbourhoods or Director of Resources (in consultation with the legal advisors and the Asset Management & Economic Development Portfolio Holder) to waive the Council’s Financial Regulations to authorise them to enter into further leases with tenants at the Epping Forest Shopping Park in the future, on the condition that they too were in accordance with the previously agreed development appraisal and planning conditions;

(3)        That delegated authority be granted to the Chief Executive, Director of Neighbourhoods or Director of Resources (in consultation with the legal advisors and the Asset Management & Economic Development Portfolio Holder) to enter into documentation associated with the Leases; 

(4)        That the Chairman of Council be requested to waive the Council’s Call-in procedure with respect to this and future Leases to reflect the timescales required to achieve a September 2017 opening; and

(5)        That Procurement Rules 18.2(b) be waived to allow for this Lease and future Leases to be signed rather than sealed.

Reasons for Decision:

To seek authority to enter into leases with tenants for the Epping Forest Shopping Park in order to achieve the Council’s financial objectives as well as deliver economic development and employment benefits from the project.

Other Options Considered and Rejected:

To bring all Agreements for Lease to Cabinet and not extend the Delegation.  However, this would run the risk of losing potential tenants if their timescales could not be met and potentially compromise the target opening date for the Shopping Park of September 2017.

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-011-2016/17).

(1)        That the tender in the sum of £10,218,000 from McLaughlin & Harvey Construction to carry out the construction of the Epping Forest Shopping Park in Langston Road be agreed;

(2)        That an increase also be agreed in the contract sum for Section 278 Highways works in the sum of £908,208 to the contract awarded to Walkers Construction on 11 January 2016;

(3)        That, in liaison with the Portfolio Holder for Asset Management and Economic Development, the Director of Neighbourhoods be authorised to agree any final variation to the Highways Contract, subject to it being within the current capital budget for this element of the project; and

(4)        That the current anticipated opening date for the Shopping Park of August 2017 be noted.

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

The Portfolio Holder stated that the re-tendering of the main building contract for the Shopping Park was carried out under European procurement regulations for a two-stage tender. Three tenders were received on 3 May 2016, and were evaluated by the Project Team including interviews with all three contractors on 26 May 2016. The bid from McLaughlin & Harvey Construction scored 92% during the evaluation process, and its bid of £10,218,000 was below the previously estimated pre-tender cost of the Shopping Park construction works prepared by the Council’s quantity surveyors, Ridge & Partners LLP, of £10,500,000.  This cost was allowed for within the projections contained in the Development Appraisal approved by Cabinet on 11 June 2015. Therefore, it was proposed to award the contract for the construction of the Shopping Park to McLaughlin & Harvey Construction.

The Portfolio Holder reported that amendments to the construction programme for the Section 278 works for the Shopping Park had increased the cost of this contract. The report had requested approval for an increase of £343,053 to the original contract sum; however, further amendments requested by Essex County Council had increased the cost of this contract by £908,208 and approval for this increase was also sought.

The Portfolio Holder disclosed that marketing of the Shopping Park continued with strong interest from a number of quarters, and a number of legal agreements for the lease of various units were with Solicitors for completion. The Grounds Maintenance and Fleet Operations Teams had relocated to the Oakwood Hill Depot and the Langston Road Depot had now been vacated. A combination of the delay to the Highways Works and the need to repeat the tender for the main construction contract had led to the opening date for the Shopping Park to be altered to August 2017.

In response to questions from the Members present, the Portfolio Holder stated that the maintenance works scheduled for the roads in that area had now been deferred for a number of years by Essex County Council, whose approval was needed before the Shopping Park could open. The Council was entering into negotiations with Essex County Council regarding the recovery of some of the costs for the Section 278 Works, and the Council would do all it could to recover some of these costs. The Section 278 Works had not yet started on site. It was reiterated that the contract for the Construction works was within the agreed budget and the Council was getting good value for money from this contract.

The Deputy Chief Executive reassured the Cabinet that the Council’s Quantity Surveyors would examine closely any claims for extra monies for the Section 278 works, and there was an adequate contingency provision in the budget for the Shopping Park to cover the additional costs of these works. The Council’s Consultant also pointed out that, even with the additional £908,208 for the Section  ...  view the full minutes text for item 25

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-061-2015/16).

(1)        That the tender of £2,070,029 from Walker Construction (UK) Ltd to carry out the Section 278 road works in Chigwell Lane relating to Epping Forest Shopping Park be agreed, subject to revisions required by Essex County Highways regarding Thames Water required works;

(2)        That the balance of the current capital allocation of £2,250,000 i.e. £179,970 be retained as a contingency to meet the costs of any variations as a result of the Thames Water requirements;

(3)        That the Director of Neighbourhoods, in liaison with the Asset Management and Economic Development Portfolio Holder, be authorised to agree any variation subject to it being within the current capital budget for this element of the project; and

(4)        That the revised target opening date for the Shopping Park of Easter 2017 (Easter Sunday 16 April 2017) be noted.

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

The Portfolio Holder reported that tenders for the Section 278 Highways Works were received by 28 October 2015, and subsequently analysed by the Project Team. The recommendation was to appoint Walker Construction (UK) Limited to carry out the works for a sum of £2,070,029. Although this was not the lowest bid, it had scored the highest under the combined Quality/Price evaluation process. Following meetings with the successful bidder, Essex County Council Highways suddenly announced that they would not permit temporary traffic lights to restrict the flow of traffic in Chigwell Lane during the works, even at off peak times. This restriction related mainly to work required by Thames Water to enlarge a foul water drain located in the road, which the contractor had already proposed to do in 50 metre sections, and was very disappointing as the Council’s Consultants had made numerous attempts to ascertain the Highways requirements for these works. An alternative plan to locate a new, larger foul drain in the grass verge was currently being examined for feasibility. Conversely, this might result in a financial saving as work in grass verges was less costly than work in the highway, and it was also recommended that the balance of the capital allocation for these works (£179,970) be retained for the time being as a contingency.

In respect of the Main Build contract for the Shopping Park, the Portfolio Holder informed the Cabinet that no bids had been received under the agreed single-stage OJEU procurement process by the closing date of 23 November 2015. A meeting of the Project Team on 7 December 2015 had discussed the re-tendering of the contract and concluded that a two stage restricted procurement process would attract more interest, and it was intended to issue Pre-Qualification Questionnaires and Invitation to Tender documents on 15 January 2016. This would now mean that practical completion of the Park would not be achieved for a Christmas 2016 opening, and that a revised opening date of Easter 2017 was now anticipated.

The Portfolio Holder stated that interest in the site was still high from potential tenants; however, some of the key ‘anchor’ tenants would not achieve sign-offs from their Boards for the leases until February 2016. The construction works at Oakwood Hill Depot had now completed both the foundations and steel frame. The works were expected to be completed by April 2016, which would allow the depot at Langston Road to be vacated in time for the planned commencement of construction works at the Shopping Park.

In response to questions for the Cabinet, the Council’s consultant confirmed that there was a Project Plan in existence, and that the Section 278 Highways Works were on the ‘critical path’ as the Park could not open until these works had been completed. The Council would have a more accurate idea of the anticipated length of the project once the Main  ...  view the full minutes text for item 121

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-045-2015/16).

(1)        That the progress made with the Epping Forest Shopping Park project be noted.

The Portfolio Holder for Asset Management & Economic Development presented a report on progress with the development of the new Epping Forest Shopping Park at Langston Road in Loughton.

The Portfolio Holder reminded the Cabinet that, having acquired the interest of Polofind Limited in the site, the Council was now the sole owner, developer and future operator of the site. The project represented a major capital investment by the Council, which included a significant element of risk. Consequently, it had been decided that detailed monitoring reports on the project would be presented to each meeting of the Asset Management & Economic Development Cabinet Committee, with the Cabinet receiving high level ongoing reports at each meeting.

The Portfolio Holder reported that the closing date for the tenders in respect of the Section 278 Highways Works had been 28 October 2015, and the received bids were now being analysed by the Council’s consultants. The closing date for the receipt of tenders for the Main Build Contract was midnight on 23 November 2015, and the bids would then be analysed by consultants from the project team in accordance with the previously agreed criteria. The Council was still hopeful that the Shopping Park would open in October 2016.

Decision:

(1)        That the progress made with the Epping Forest Shopping Park project be noted.

Reasons for Decision:

To appraise the Cabinet on the general progress with the Epping Forest Shopping Park project, as requested.

Other Options Considered and Rejected:

None, as this was a progress report with no decisions required.

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-038-2015/16).

(1)        That Contract Standing Orders C17, Receipt and Custody of Quotations and Tenders, and C18, Opening of Tenders and Quotations, be waived for the tendering of the Section 278 Works and main Build Contract for the Epping Forest Shopping Park to enable the electronic receipt of tender documentation for these contracts.

The Portfolio Holder for Asset Management & Economic Development presented a report on the tendering by electronic submission of the Building Contracts for Section 278 Works and the Epping Forest Shopping Park.

The Portfolio Holder reported that, in accordance with the previously agreed timetable, all tender documents for the Section 278 Highway Works and Construction Contract for the Epping Forest Shopping Park had been uploaded and displayed on the Government’s Contract Finder website in accordance with European Procurement Regulations. The tendering process for these two large contracts was complicated and involved a great deal of technical information for contractors to assess and quantify. The resulting tender submissions by contractors would also be complex. The electronic submission of tenders into a protected "Safelink Room" would allow tenderers to upload substantial documents more easily and securely, and was becoming the modern industry standard. Therefore, the Cabinet was requested to waive Contract Standing Orders C17 and C18 to enable the tendering for these two contracts to be undertaken electronically.

Decision:

(1)        That Contract Standing Orders C17, Receipt and Custody of Quotations and Tenders, and C18, Opening of Tenders and Quotations, be waived for the tendering of the Section 278 Works and main Build Contract for the Epping Forest Shopping Park to enable the electronic receipt of tender documentation for these contracts.

Reasons for Decision:

To allow for the efficient and secure tendering of these two large contracts.

Other Options Considered and Rejected:

To require paper submissions of tenders as currently required by the Council’s Contract Standing Orders. However, this was not the normal modern industry approach and might potentially deter some companies from tendering.

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-037-2015/16).

(1)        That progress with the Epping Forest Shopping Park project be noted; and

(2)        That, in addition to ongoing regular reports to the Cabinet, future detailed monitoring of the project be undertaken by the Asset Management & Economic Development Cabinet Committee.

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

The Portfolio Holder stated that strong interest in the Shopping Park from major retailers continued to be shown and work was continuing on drafting the Heads of Terms and the fittings requirements for each potential tenant. It was hoped that the ‘anchor’ tenants would be formally signed up very soon. In relation to the governance arrangements in place, the Cabinet had been receiving regular monitoring reports at each meeting, with key decisions having been taken by both the Cabinet and the Council. It was now proposed that the Asset Management & Economic Development Cabinet Committee should take responsibility for more detailed monitoring of the scheme. The practical arrangements for this was due to be discussed at the next meeting of the Cabinet Committee on 15 October 2015.

In response to questioning from the Members present, the Portfolio Holder advised the Cabinet that there had been no assessment performed of the impact the Shopping Park would have on other shopping areas in the District. However, studies had previously shown that a lot of the potential retail spend by residents was lost to centres outside the District. The Deputy Chief Executive added that the Council already promoted the local centres throughout the District through initiatives such as One Shop Local managed by the Economic Development Team. The Leader of Council requested that details of the marketing campaign for the Shopping Park be included in the next progress report. The Portfolio Holder also undertook to include the potential project risks in future monitoring reports.

The Council’s Consultant advised the Cabinet that the prospective opening time for the Shopping Park would be known following receipt of the tenders for the Main Build and Section 278 works contracts on 7 December 2015. The original target date was October 2016, but some of the units could take up to four weeks to fit out, so the secondary target date was Easter 2017 if the Park would not be ready to open before Christmas 2016. For the Section 278 works, the Highways Agency (Essex County Council) would not allow all three items of work to be progressed at the same time, and risk traffic backing up on the M11 motorway. Therefore, it was expected that works would continue until 8.00pm each evening in an effort to complete the schemes as soon as possible. The Highways works would also improve access to the Loughton Broadway.

Decision:

(1)        That progress with the Epping Forest Shopping Park project be noted; and

(2)        That, in addition to ongoing regular reports to the Cabinet, future detailed monitoring of the project be undertaken by the Asset Management & Economic Development Cabinet Committee.

Reasons for Decision:

To appraise the Cabinet on the current progress with the Epping Forest Shopping Park project, as requested.

To allow more detailed monitoring of the project to be undertaken through the Cabinet Committee.

Other Options Considered and Rejected:

To allow more detailed monitoring  ...  view the full minutes text for item 70

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-026-2015/16).

(1)        That progress with the Epping Forest Shopping Park project be noted.

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

The Portfolio Holder reminded the Cabinet that, having acquired the interest of Polofind Limited, the Council was now the sole owner, developer and operator of the site, and the project represented a major capital investment for the Council. The Cabinet noted the following issues concerning the project:

·                      Project Management - DAC Beachcroft had been progressing the contracts with the consultants, and a new Development Surveyor had commenced work on 3 July 2015 to assist with the project.

·                      Highways – Essex County Council had been slow to approve the Section 278 works and it had been decided to commence the tender process as the risk of major alterations being required to the scheme was considered low.

·                      Highways – access to the BP Garage had received planning approval in 2012; however, BP had recently suggested an alternative route. Discussions were on-going but it was intended to proceed with the approved design at the current time.

·                      Planning – the reserved matters planning application had been approved on 10 June 2015.

·                      Architectural – detailed drawings had been completed and would be included in the tender package for the main Design and Build contract.

·                      Procurement – the OJEU restricted procurement timetable for the appointment of the main contractor to build the Shopping Park was being developed by the Council’s external solicitors. It was intended to have all the tender documents ready by the end of August.

·                      Marketing – strong interest continued to be shown in the Shopping Park, and agreement of the heads of terms with the anchor tenants was being finalised.

The Cabinet was cautioned to examine the potential parking issues in the area when the employees of Polofind Limited could no longer park on the T11 site. The Portfolio Holder reassured the Cabinet that this issue would be considered in due course by Officers.

Decision:

(1)        That progress with the Epping Forest Shopping Park project be noted.

Reasons for Decision:

To appraise the Cabinet on the current progress with the Epping Forest Shopping Park project, as requested.

Other Options Considered and Rejected:

None, as this was a progress report with no decisions required.

(Asset Management & Economic Development Portfolio Holder) To consider the attached restricted report and appendices.

Mover:            Councillor A Grigg, Portfolio Holder for Asset Management &                         Economic Development.

The Portfolio Holder for Asset Management & Economic Development, Councillor A Grigg, presented a report requesting a capital supplementary estimate for 2015/16 in the sum of £30,636,280 to be approved.

The Portfolio Holder reported that the requested expenditure would enable the Council to buy out the interest of Polofind Limited in the Epping Forest Shopping Park site, which would leave the Council as the sole developers. Following on from this, the bulk of the requested expenditure would enable the Council to construct the Shopping Park itself, and then market the units to potential tenants prior to its opening.

The Council’s Development Consultant from Colliers International presented the latest Development Appraisal for the project to the Council, and answered a number of questions from Members regarding the development. The Council was also given details of the Project Development Team that had been assembled, and Members were reminded that there would be regular project monitoring reports presented to each Cabinet meeting until the development was completed.

Report as first moved ADOPTED.

            RESOLVED:

            That a capital supplementary estimate for 2015/16 in the sum of £30,636,280        be approved, to enable the Council to:

            (a)        buy out the interest of Polofind Limited in the development of Epping           Forest Shopping Park;

            (b)        construct the Shopping Park; and

            (c)        let the units within the Shopping Park prior to its opening.

(Asset Management & Economic Development Portfolio Holder) To consider the attached restricted report (C-009-2015/16).

(1)        That the buy out of the interest of Polofind Limited in the Epping Forest Shopping Park development by the Council be agreed and in particular, the site known as T11 for the sum of £10,250,000 plus £410,000 for stamp duty and £153,750 for agents fees in accordance with the Heads of Terms attached as an Appendix to the report, which included no further liability by Polofind Limited for the clawback provision of £2,250,000 plus reimbursement of Professional Fees incurred in bringing the site forward;

(2)        That a Capital Supplementary Estimate be recommended to the Council for approval at the Extraordinary Meeting on 23 June 2015 in the sum of the £10,250,000, plus £410,000 for stamp duty and £153,750 for agents fees for the purchase and an estimated £642,000 for professional fees, plus a sum of £19,180,530 making a total of £30,636,280 based on the latest Development Appraisal to enable the Council to construct and let the Epping Forest Shopping Park;

(3)        That Contract Standing Orders C5 and C6 be waived to enable the Council to retain the existing project team, who would be engaged directly by the Council under new contracts developed by DAC Beachcroft, whose provisional appointment as specialist construction lawyers would be confirmed; and

(4)        That a temporary licence of 12 months for two units at Oakwood Hill Industrial Estate be entered into by the Council, to facilitate the vacating of the depot pending the completion of the Council’s new depot facilities at Oakwood Hill, at a cost of £69,000 including internet, utilities and building insurance but not business rates, to be contained within existing provision.

The Portfolio Holder for Asset Management & Economic Development introduced a report concerning the Epping Forest Shopping Park.

The Portfolio Holder reminded the Cabinet that, in accordance with previous policy decisions to derive best value from the Council’s assets and to generate revenue from the investment of capital resources, a number of development projects on Council owned land were currently being progressed. The most significant of these was the Epping Forest Shopping Park in Langston Road, Loughton, which had the capacity to generate employment for local people, provide a significant boost to the local economy, and ensure that retail spend was retained within the District. 

The Portfolio Holder reported that, having obtained the necessary planning consent, and appointed a project team, who had undertaken the necessary development appraisal and cost estimate work, the Cabinet was being requested to  agree a number of important considerations in progressing the project. The first of these was the buying out of the interest of the current joint venture partner, Polofind Limited, for a negotiated sum of £10.25million plus £410,000 for stamp duty and £153,750 for agents fees. The purchase price would include no further liability by Polofind Limited for the clawback provision of £2.25million. The second of these was obtaining the capital provision required to construct and let the shopping park, which it was estimated would cost a further £19.181million. The third consideration was the retention of the existing project team, who would be engaged directly by the Council once the purchase was complete, through the waiver of Contract Standing Orders C5 and C6, and the confirmation of the appointment of DAC Beachcroft as specialist construction lawyers.

The Portfolio Holder highlighted that the European Union procurement requirements (OJEU) would apply to the main building contract, but not to the Section 278 Highways Works Contract, and the Cabinet was requested to authorise the tendering of the Highways works as detailed in the Section 278 agreement to include any advance utilities costs to be met within existing resources allocated to the project to date. It was stressed that the additional procedures to comply with OJEU would make completing the project in time for a Christmas 2016 opening more challenging.

The Cabinet noted the current position on the marketing of the retail park and the potential anchor tenants, as well as the latest Development Appraisal for the project as provided by the Council’s consultants. Whilst it was acknowledged that there was an element of risk if the Council became the sole owner operator, this would enable the Council to have full control of the tenant mix and retain all future income generated by the Shopping Park. It was also emphasised that the Cabinet would continue to receive regular monitoring reports at future meetings.

Local Members from Loughton asked a number of detailed questions concerning the development of the Shopping Park and its potential effects on nearby town centres. The Cabinet noted that there was a lack of such smaller centres inside the area bounded by the M25 motorway,  ...  view the full minutes text for item 18

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-012-2014/15).

(1)        That the name of the retail development at Langston Road, Debden be ‘Epping Forest Shopping Park’; and

(2)        That the logo for the Shopping Park be agreed as that shown on the first page of the draft marketing brochure, attached at Appendix 1 to the report.

The Portfolio Holder for Asset Management & Economic Development presented a report on the naming of the retail park in Langston Road, Debden.

The Portfolio Holder reported that the marketing of the retail park would need to begin shortly and a name had to be agreed for this to commence. A number of different alternatives had been considered, but the advice from the Council’s consultants was that ‘Epping Forest Shopping Park’ was the best option as Epping Forest was a clearly identifiable location and would be more attractive to prospective tenants.

Decision:

(1)        That the name of the retail development at Langston Road, Debden be ‘Epping Forest Shopping Park’; and

(2)        That the logo for the Shopping Park be agreed as that shown on the first page of the draft marketing brochure, attached at Appendix 1 to the report.

Reasons for Decision:

To allow the marketing exercise to commence.

Other Options Considered and Rejected:

To not name the retail park and delay the marketing programme.

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-054-2013/14).

(1)        That Polofind Ltd be released by the Council from the terms of the clawback clause relating to the sale of the former T11 site in return for a payment of £2.25million payable three months after the practical completion of the Langston Road retail park.

The Portfolio Holder for Asset Management & Economic Development presented a report on the release of a clawback covenant relating to the former T11 site, which was proposed to form part of a new retail park in Langston Road, Loughton.

The Portfolio Holder reminded the Cabinet that the Council had sold the land known as the T11 site in Langston Road, Debden in August 2006 to Polofind Ltd for £6.05million. The original agreement had included a clawback covenant if the purchasers had obtained planning permission for a use on the site that substantially increased its value. The Council was progressing a development agreement with Polofind Ltd to develop this site along with the adjoining Council Depot in Langston Road for a retail park, classified as A1 use.

The Portfolio Holder reported that outline planning approval was granted on 20 July 2012. Subsequently, the Cabinet had approved supplementary District Development Fund finance of £150,000 on 9 September 2013 to cover half of the cost for contamination surveys with Polofind Ltd of the site and to submit a full planning application for the retail park development. The Council had appointed Berwin Leighton Paisner as legal advisers to negotiate a development agreement with Polofind Ltd to develop the retail park, but it would not be possible to finalise this agreement until the issue of the clawback covenant had been settled. The negotiated payment of £2.25million would be due three months after the practical completion of the retail park.

Decision:

(1)        That Polofind Ltd be released by the Council from the terms of the clawback clause relating to the sale of the former T11 site in return for a payment of £2.25million payable three months after the practical completion of the Langston Road retail park.

Reasons for Decision:

To obtain a valuable capital receipt for the Council and to allow the development agreement for the retail park  with Polofind Ltd to be progressed.

Other Options Considered and Rejected:

To not agree the capital payment for the release of the clawback provision. However, this would delay progress of the retail park development agreement and Polofind Ltd could decide to develop their site for a use that did not trigger the clawback provision.