Redevelopment of St Johns Road, Epping - Proposed Heads of Terms and Development Agreement
(Portfolio Holder for Asset Management & Economic Development) To consider the attached report (C-011-2014/15).
Additional documents:
Decision:
(1) That, as attached to Appendix 1 of the restricted report and subject to clarification of the food store operator, the proposed Heads of Terms be agreed following negotiations between the Council’s Agent, Savills, and Frontier Estates (Epping) Limited (the Developer) together with agents acting for Essex County Council and Epping Town Council;
(2) That external solicitors be instructed to prepare and negotiate a Development Agreement to document the agreed Heads of Terms for the redevelopment of the St John’s Road site in Epping, subject to approval by the Council of the food store operator;
(3) That the Portfolio Holder for Asset Management and Economic Development be authorised to agree minor amendments to the documentation, in consultation with the Director of Governance; and
(4) That a supplementary District Development Fund estimate in the sum of £35,000 be recommended to the Council for approval to instruct the external solicitors to prepare and negotiate a development agreement for the site.
Minutes:
The Portfolio Holder for Asset Management & Economic Development presented a report on the proposed Heads of Terms and Development Agreement for the redevelopment of St John’s Road in Epping.
The Portfolio Holder outlined the proposed Heads of Terms for a development agreement for the development of the St John’s Road site, which comprised the Council’s Housing Depot, Epping Town Hall and the former Epping Junior school. This site was jointly owned by Essex County Council (2.59 acres), the District Council (0.59 acres) and Epping Town Council (0.54 acres). The current proposal was for a food store, car park, small cinema, restaurants, ancillary commercial uses and residential development.
The Portfolio Holder was also proposing that external solicitors be instructed to prepare and negotiate a development agreement and this had been estimated to cost £35,000. It was proposed to cover the cost of this work with supplementary finance from the District Development Fund. The redevelopment of the site would produce a number of economic and community benefits for the area, which would be in the interests of all three Councils, and would be an excellent example of working in partnership for the common good. The District Council would receive the benefit of additional business rates, and there would a significant benefit for local residents from the jobs created by the development.
A number of issues were highlighted by the members present, including the current traffic issues in St John’s Road and the status of Epping Hall. The Director of Governance reassured the Cabinet that the final proposals for the site would be subject to Cabinet approval and that there would an opportunity for local Councillors to discuss them. However, it was also emphasised that the final proposals would need to be approved by all three Councils involved. It was emphasised that the current proposals would not restrict use of the car park to customers of the food store, and the inclusion of a small cinema in the plans was a direct result of the comments received during the consultation.
Decisions:
(1) That, as attached to Appendix 1 of the restricted report and subject to clarification of the food store operator, the proposed Heads of Terms be agreed following negotiations between the Council’s Agent, Savills, and Frontier Estates (Epping) Limited (the Developer) together with agents acting for Essex County Council and Epping Town Council;
(2) That external solicitors be instructed to prepare and negotiate a Development Agreement to document the agreed Heads of Terms for the redevelopment of the St John’s Road site in Epping, subject to approval by the Council of the food store operator;
(3) That the Portfolio Holder for Asset Management and Economic Development be authorised to agree minor amendments to the documentation, in consultation with the Director of Governance; and
(4) That a supplementary District Development Fund estimate in the sum of £35,000 be recommended to the Council for approval to instruct the external solicitors to prepare and negotiate a development agreement for the site.
Reasons for Decision:
Proposed Development - St Johns Road, Epping
(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-087-2013/14).
Additional documents:
Decision:
(1) That joint negotiations alongside Essex County Council and Epping Town Council be entered into with Frontier Estates as the preferred bidder for the combined site for a fixed period of four weeks; and
(2) That the outcome of those negotiations be reported to the next available Cabinet following the conclusion of negotiations.
Minutes:
The Portfolio Holder for Asset Management & Economic Development presented a report concerning the proposed development of St John’s Road in Epping.
The Portfolio Holder reported that a number of expressions of interest were received following a joint marketing exercise for the combined site in 2013, agreed by Essex County Council, Epping Town Council and the District Council. In total, twelve bids from residential developers, two bids from care home operators and three mixed use bids were received. The Cabinet was updated on the analysis of those bids, the liaison that had taken place between the three Councils and their appointed agents, and it was proposed that joint negotiations be entered into with Frontier Estates as the preferred bidder.
The Cabinet was informed the external agents had advised that in order to obtain a firm proposal from their recommended best offer then a fixed period of four weeks be given for further negotiations to explore in more detail the financial implications and community benefits of the proposed scheme. The outcome of the negotiations would be reported to the next available Cabinet meeting once they had been concluded.
The report was welcomed as an exciting and imaginative proposal for that part of Epping, which it was acknowledged had aroused great public interest. The Portfolio Holder was aware that the Citizens Advice Bureau was searching for new premises from which to base themselves from.
Decision:
(1) That joint negotiations alongside Essex County Council and Epping Town Council be entered into with Frontier Estates as the preferred bidder for the combined site for a fixed period of four weeks; and
(2) That the outcome of those negotiations be reported to the next available Cabinet following the conclusion of negotiations.
Reasons for Decision:
To maximise the financial and community benefits for all three Councils and local residents for the land in question.
Other Options Considered and Rejected:
To market all or parts of the site on an open tender basis and for the three Councils to consider the offers separately. However, this would run contrary to the partnership approach agreed by the three Councils.