(The Leader of the Council) To consider the attached report (C/016/2007-08).
Decision:
(1) That the T11 development site in Langston Road, Loughton be sold to Exton Estates Ltd at a purchase price of £6,050,000 on the terms reported by the Head of Legal, Administration and Estates;
(2) That a further report be submitted to the next Cabinet meeting on progress with the transaction, together with options for further action should that be appropriate;
(3) That the Head of Legal, Administration and Estates through property consultants Lambert Smith Hampton or otherwise be authorised to negotiate any amendments to the principal terms and conditions of the sale subject to approval by the Leader of the Council; and
(4) That Essex County Council be urged to use Section 106 monies previously received to improve the access to the site from the junction at Chigwell Lane.
Minutes:
The Deputy Leader of the Council presented a report concerning the development land sale of Langston Road Industrial Estate in Loughton. The Cabinet had agreed in November 2006 to offer the site for sale, possibly in conjunction with the adjacent land owned by Essex County Council. However, the County Council had sold this land separately and all parties in receipt of a tender pack were informed that it was only the T11 site that was on offer. A considerable number of offers were received by the closing date of 11 May 2007, which were opened by the Leader of the Council on 16 May 2007, and the top six offers were then evaluated by the Council’s property consultants, Lambert Smith Hampton. The leading offer had been received from Exton Estates, in the sum of £6,050,000, for a development of 21 business units comprising a total floor space of approximately 64,000 square feet. Representatives from Exton had met with Planning Officers, who had advised that their proposed scheme was acceptable in principle subject to design details; Exton had confirmed that they would commence development once detailed planning consent had been granted. Thus, the leading submitted offer appeared to meet all the requirements in respect of planning, funding, development track record and the purchase timescale, and had been recommended for acceptance by Lambert Smith Hampton.
The Deputy Leader informed the Cabinet that a further report would be forthcoming at the next meeting of the Cabinet detailing the progress of the transaction, together with options for further action should that be necessary. In the event of any issues arising from the sale, it had been recommended that the Head of Legal, Administration and Estates through the Council’s property consultants, Lambert Smith Hampton, be authorised to negotiate any amendments to the terms of the sale with the purchaser, subject to approval by the Leader of the Council. The Cabinet were informed that the Overview and Scrutiny Committee had suggested a further recommendation that Essex County Council be urged to use previously received Section 106 monies to improve access to the site from the junction at Chigwell Lane, which was agreed.
Decision:
(1) That the T11 development site in Langston Road, Loughton be sold to Exton Estates Ltd at a purchase price of £6,050,000 on the terms reported by the Head of Legal, Administration and Estates;
(2) That a further report be submitted to the next Cabinet meeting on progress with the transaction, together with options for further action should that be appropriate;
(3) That the Head of Legal, Administration and Estates through property consultants Lambert Smith Hampton or otherwise be authorised to negotiate any amendments to the principal terms and conditions of the sale subject to approval by the Leader of the Council; and
(4) That Essex County Council be urged to use Section 106 monies previously received to improve the access to the site from the junction at Chigwell Lane.
Reasons for Decision:
The proposed sale would achieve development of land declared surplus to requirements, raise a valuable capital receipt and contribute towards the Council’s economic development aims.
Other Options Considered and Rejected:
To remarket the site, however as several offers exceeding expectations had already been received, the market was unlikely to yield a better offer.
To retain the site for possible future alternative use or development, possibly in conjunction with the adjacent Council depot.