Issue - meetings

Report No:   CAB/SE/16/017 TO FOLLOW

Portfolio Holder: Alaric Pugh           Lead Officer: Steven Wood

RECOMMENDED TO COUNCIL (Extraordinary Council 19 April 2016):

That the following be approved:

(1)     the proposals the Council should pursue are the options that deliver a comprehensive development of the site identified by the adopted revised Western Way, Bury St Edmunds Masterplan which includes the DHL/NHS distribution centre and the Council-owned land;

(2)     a budget of up to £100,000, to be funded from the Council’s strategic priorities and medium term financial strategy reserve, is allocated to progress the proposal that best achieves the Council’s objectives for the site to deliverability and design stage to enable a preferred option to be formulated and presented to Cabinet, as set out in Section 4 of Report No: CAB/SE/16/017; and

(3)     following the Cabinet consideration of the preferred proposal a report be prepared outlining Cabinet’s recommended development scheme for Council to give final approval for the delivery of phase II of the Western Way Development site.  

The Cabinet considered Report No: CAB/SE/16/017, which sought approval for an allocation of a budget of up to £100,000 to enable work to continue to progress the option that best achieved the Council’s objectives for the Western Way development site to the ‘delivery and design’ stage.  This would subsequently enable a preferred option to be formulated and presented to a future meeting of Cabinet.

Councillor Alaric Pugh, Portfolio Holder for Planning and Growth, drew relevant issues to the  attention of the Cabinet, including that the original Public Service Village concept (now to be known as Western Way Development site) was approved and adopted by the Council in 2006. West Suffolk House was built as part of Phase 1.

On 16 December 2014, the Council had agreed to undertake initial work to formulate Phase II of the Public Service Village project.  Funding was approved for the appointment of consultants to:

(a)     assist with the review of the adopted Masterplan;

(b)     provide project management support; and

(c)     provide legal and property advice.

As part of this initial stage, the commercial considerations were examined to establish whether the proposals contained in the revised Masterplan for this project were financially feasible.

The initial appraisal concluded that the most financially prudent option, if the project was progressed, was for the Council to effectively become the developer of the site.  This then presented a number of development options taking account of the interests being expressed and land ownership requirements.

The Development Options for the Council were analysed over a 30-year period, giving a net present value of net levels of deficit (D) and surplus (S) (owing to commercial sensitivities, the actual amounts for each option, the methodology and assumptions were detailed in Exempt Appendix 1 attached to the report).  Three of the options outlined below gave the Council a surplus:

1.   Do nothing – cost of maintaining the site (D)

2.   Simply sell the land for private development (S)

3a.          Develop and include DHL land  (S)

3b.          Develop and exclude DHL land (S)                         

The Borough Council had been clear from the outset, and particularly when agreeing the 2006 Masterplan, that the preferred option and ultimate aim for the site would be for a comprehensive development of the whole site including the DHL/NHS logistical building. The revised Masterplan (see Minute 193 above) addressed this aim.

The Cabinet expressed enthusiasm for this project and agreed that based on the information received to date, Option 3a would best achieve the Council’s objectives.  This was subsequently recommended  to Council that this option be progressed to the delivery and design stage.

RECOMMENDED TO COUNCIL:

That the following be approved:

(1)    the proposals the Council should pursue are the options that deliver a comprehensive development of the site identified by the adopted revised Western Way, Bury St Edmunds Masterplan which includes the DHL/NHS distribution centre and the Council-owned land;

(2)    a budget of up to £100,000, to be funded from the Council’s strategic priorities and medium term financial strategy reserve, is  ...  view the full minutes text for item 194