The Council is being asked to sell its freehold reversion and give up occupation of part of the Council's former main highway depot at Carisbrooke. This is a special purchaser case and the negotiation of terms is being recommended.

The property known as Carisbrooke depot was until the early 1990s used by the former Isle of Wight County Council as its main highway and transportation depot. Since 1 April 1992 most of the property has been leased to Island Group 90 Limited, now known as The Quarr Group, on a 99 year lease, subject to a premium of £428,000 and a nominal rent of £1 per annum. Permitted use under the lease is as a highway and contractors depot with ancillary repair facilities for other uses within class B1 or other specific uses approved by the Planning Authority. The main land and buildings within the lease to The Quarr Group include three inter connecting single storey buildings for office use, workshop buildings, oil storage buildings, a secure store, a concrete framed corrugated asbestos workshop garage building, other workshops and a central car park area. The areas reserved to the Council currently include the mess room, the fuel tanks, transport offices, garages, a small workshop and the main parking area for the Wight Bus Fleet.

When the area now used by The Quarr Group was transferred in 1992 some 500 staff transferred to the new company. The company now employs some 700 staff on the Island with 60 people based at Carisbrooke, whilst throughout the southern region the company has some 1800 employees. The Company has continued to expand since 1992.

The Quarr Group has written to the Council expressing a need to review the business strategy for the company and as a result is requesting that consideration be given to entering into discussions relating to the freehold reversion of the site.

During the accommodation review several Members attended the site and will be aware of the building layout. Physical constraints currently facing the site include the need to remove the disused fuel tanks costed at some £14,000 and the need for a new electricity supply costing some £69,000.

Members will also be aware that the Council=s Transport operation occupies parts of this depot for parking of vehicles and as operational offices. Before possession of these parts can be arranged it will be necessary to work up a scheme for relocating the Council=s Transportation operation and any future recommendation will need to resolve this issue. Officers and members of the Accommodation Task Group are considering the options available.

Planning consent was granted in July 2000 under reference TCP21334/E for continued use of the site for B1, B2 and B8 uses and open storage and the flexibility to move between specific uses within certain buildings on site. Conditions attached to the consent restrict use of certain buildings and impose a limitation on use of the open storage area and operating hours. The Development Control Officer for this area has confirmed that this planning consent seeks to set the parameters for the use of the site and the existing buildings for the foreseeable future. The site is within a designated conservation area and outside the development envelope. The Development Control Officer has confirmed that there is no scope for residential development on the site that is foreseeable at present. He has however confirmed that there is no policy objection to redevelopment of the site for employment use providing that other policies protecting the character of the countryside, conservation area and neighbouring habitats, etc. were recognised and complied with. A major consideration in this regard would be the inadequate nature of the access to and from the site from Whitcombe Road and the limited scope there appears to be for providing improved visibility. Subject to further information regarding the intensity of the existing use of this junction, a comprehensive redevelopment of the site that would not produce any significant additional traffic may be approved.

As this request would represent a merger of two interests in the same property, this is classed as a special purchaser case and if the Council decides to progress this request then independent valuation reports would be obtained from two professionally qualified surveyors. In view of the advice set out in the above planning paragraph, it is being recommended that instructions to Valuers shall include provision of an overage condition to deal with a disposal in the future.

This paper has been circulated to the local Member and to Officers within the Council.

Potentially a capital receipt which may be used within the accommodation review.

1. That the Council authorises negotiations be commenced with The Quarr Group and thus a report with recommendations to come back to the Executive.

M J A FISHER

Strategic Director

Corporate and Environment Services

R R BARRY

Portfolio Holder for Resources