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REPORT TO THE EXECUTIVE
Date: 12 MARCH 2003
Title SYLVAN AVENUE, EAST COWES
REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES
IMPLEMENTATION
DATE: 24 MARCH 2003
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SUMMARY/PURPOSE
To consider
the disposal of surplus land at Sylvan Avenue, East Cowes, on terms being
recommended to the Council.
BACKGROUND
The land
shown outlined bold on attached plan No. PR 040/6 extending to approximately
1.7 hectares was acquired by the Isle of Wight County Council in 1970 for
£21,000 as a future primary school site at the time. This situation has changed and
the preferred location for a new primary school within East Cowes is now
at Beatrice Avenue adjacent to Osborne Middle School. The land at Sylvan Avenue is now identified for development and
has been allocated for housing in the Unitary Development Plan.
Earlier
reports to the former Personnel and Sourcing Committee in 1997 and 1998
declared the site surplus to requirements and that development proposals should
be brought forward.
Consulting
Architects were commissioned to bring forward a suitable scheme for submission
as an outline planning application and after exhaustive discussions and several
designs the attached plan was submitted as an outline planning
application. The plan proposes 39
dwelling units based on a reasonable density with two access points and retains
an area of 0.45 hectares as regenerated woodland/amenity area/open space. Subject to the outcome of this application,
the site would be offered for sale on the open market. However, shortly after this application was
submitted in October 2001 GKN Westland began to run down their operation on the
adjoining lands. As a result the regeneration of much of the central area in
and around East Cowes is now being proposed.
The South East England Development Agency (SEEDA) are developing these
regeneration proposals with the Island's Economic Partnership under the heading
"Project Cowes". The Council's
outline planning application has been put on hold until this matter is
resolved.
The land at
Sylvan Avenue will form part of Project Cowes.
To assist this project SEEDA prefer to directly manage change through
land ownership and has applied to
purchase the
land in question. For this reason the
transfer of land ownership is being recommended by your Officers. SEEDA wish to progress this acquisition now
and are able to complete this transfer during the current financial year.
In bringing
forward this proposed transfer Members will note the extent of land to remain
undeveloped under the original outline planning application (see plan
attached). The resources for this allocation are as follows.
When
commenting on the draft UDP the Inspector's report mentions a requirement for a
children's play area or open space to be considered in this area. The report discussed both the Council's land
and the adjacent GKN site and that a requirement for open space should be incorporated
if the two sites are to be developed as a whole. SEEDA will be in discussions with GKN and it is understood that
ownership of the Council's land will help enable these discussions. The site being sold is therefore being
valued on the basis of current planning policy which suggests that the
Council's land is likely only to gain planning permission should the
application include an open space allocation.
The scheme proposed is for 39 units with 20% allocation for affordable
housing. The proposal is to sell the
whole site, including the regenerated woodland, to SEEDA so that it can be
incorporated in Project Cowes and provide the Council with a substantial
capital receipt.
An
application to register part of the site as village green is due to be
determined by the Regulatory Committee prior to this Executive meeting. The outcome of that application will be
reported verbally to the Executive.
The
decisions for the Executive and for the Regulatory Committee are entirely
distinct and fall to be determined on different criteria.
STRATEGIC
CONTEXT
The Council
has two main aims with regard to this land.
Firstly, to support the regeneration of East Cowes and, secondly, to
gain the best financial capital receipt possible. The Corporate Plan aims to improve Island life through a number
of actions, including the provision and availability of affordable
housing. The proposed development
includes a 20% allocation for affordable housing and should the scheme be
developed on a larger scale a similar allocation would be expected. In addition, the plan looks to protect the
Island's environment and this will be achieved through the allocation of part
of the site as regenerated woodland.
The development will also provide an opportunity for employment in the
area.
The
Community Strategy looks to provide a long term vision for the Island. Economic growth and the provision of jobs
are vital. The Project Cowes
regeneration scheme will be looking at the best way in which this can be
achieved and by disposing of this land to SEEDA more land can be released for
the development of tourism, businesses and infrastructure as outlined in the
plan.
The Capital
Strategy indicates that a significant part of the Council's capital resources
are formed through the sale of surplus assets.
The land at Sylvan Avenue does not have a foreseeable alternative use,
therefore, the sale of this site to SEEDA at this time is being recommended.
The local
Members of East Cowes have been consulted as well as the Portfolio Holder for
Resources and this report reflects their views. East Cowes Town Council have also been consulted and the current
planning application was agreed with that Council. The Council's Planning Officers have suggested that this site
performs well against the criteria within PPG3 for housing development on brown
field and green field sites.
In addition,
SEEDA, Council Officers and the Isle of Wight Partnership have been involved
with this process.
No adverse
comments have been received.
FINANCIAL/BUDGET
IMPLICATIONS
Two
independent valuers were commissioned to provide a freehold valuation of the
site. Consideration was given to
Development Plans allocated use for the site and the subsequent Inspector's
Report. Both Valuers agreed the ,900,000 being recommended to the Council as a capital receipt which is
the market value and therefore meets the requirement of best consideration
under Section 123 of the Local Government Act 1972 (LGA 72).
LEGAL
IMPLICATIONS
The site is
freehold and the sale is a straightforward disposal under LGA 72.
PLANNING
IMPLICATIONS
The Planning
Department have been included throughout this process. The Council's Development Control Manager
has commented on this proposal as follows.
"The broad conclusion of the Urban Capacity Study is that the
Island will require all the allocated green field sites to come forward for
development before the end of the planned period (2011) in order to meet
identified housing needs. This will
clearly be the background for decisions on any individual site but does not
absolve the Council, as Local Planning Authority, of setting how each scheme
complies with the objectives of PPG3.........
Paragraph 38 of PPG3 states that planning applications in the interim
must be considered in light of its contents, and in particular paragraph 31
which sets out criteria for determining housing sites. The site at Sylvan Avenue performs well
against the criteria given its location within the urban fabric of East Cowes
and it is close to the town centre, shops, schools and local business".
EVALUATION/RISK
MANAGEMENT
The critical
success factors affecting this disposal are, firstly, SEEDA will bring inward
investment and will advise on the regeneration of the area through Project
Cowes. Whilst the Council's available
investment is limited, the Council will be working alongside SEEDA as a
strategic partner and as such the transfer to this land helps to underpin that
partnership. The ability for SEEDA to
bring substantial inward investment funds to improve this area will remain an
on-going critical factor. In addition
the ability for SEEDA to secure its own capital receipts to lever funds will be
essential. As such the success of both
these factors will very much depend on
an acceptable project plan for the area being put in place quickly and being
delivered by all stakeholders.
PROPOSED
TERMS
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Consideration:
£900,000.
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Completion date:
Before the end of March 2003.
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Overage: A covenant will be included which will
entitle the Council to 50% of the value of any additional development on the site
beyond the allocated 39 dwellings.
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The site is to include an area of open
space/regenerated woodland.
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Each party to bear their own costs.
OPTIONS
1. To declare the land surplus to requirements and approve the
disposal of the whole site to SEEDA on the terms set out above.
2. To offer the site for sale on the open market.
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RECOMMENDATIONS Option 1. |
BACKGROUND
PAPERS
Personnel
and Resourcing Committee, Paper C1, 12 August 1997.
Personnel
and Resourcing Committee, Paper C5, 19 November 1998.
Contact Point: Kevin Gillett, Estates Surveyor F 823265
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M J A
FISHER Strategic
Director Corporate and Environment Services |
R R Barry Portfolio
Holder Resources Select Committee |
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