PAPER B3

Purpose : For Decision

Committee :    EXECUTIVE

Date :              18 JUNE 2002

Title :              LAND FRONTING DOWNSVIEW CHALET SITE, PEROWNE WAY, SANDOWN

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

SUMMARY/PURPOSE

This report proposes to transfer a strip of land fronting a housing development site at Sandown to South Wight Housing Association at nil consideration in support of the Council's housing objectives.

BACKGROUND

The Council is the freeholder of a strip of railway land fronting a proposed housing development site at Perowne Way, Sandown, as indicated on the attached plan. The land is part of the former Newport to Sandown railway. South Wight Housing Association is in negotiations with the owner of the former chalet site and proposes to bring forward some 80 housing units or thereabouts over the next few years on the site of this property. As the Council owns the frontage to the site, the Council in effect has a partial ransom strip to the development site in that South Wight Housing Association has some alternative access available from the adjoining development. Given this scenario, the Council's property has a value on the open market in the order of £100,000 which has been independently assessed for the Housing Association by the Valuation Office. This assessment takes into account the need to decontaminate part of the site which could cost up to £300,000. The consideration being offered for the land agreed by the Housing Association has been made known to your Officers.

The Council is being asked to forego a capital receipt for its access strip and support the Housing Association in acquiring the development site to bring forward new affordable housing to the area. By releasing this access strip the Council will not only secure the provision of affordable rented housing to which it will have nomination rights, but also the notional capital input of this land to the scheme will score highly with the DTLR when this year's Housing Strategy is submitted and will help to make the case for the DTLR to improve the Council's rating performance. For this reason the proposal is being recommended to Members.

LEGAL IMPLICATIONS

The property is freehold, the site has been licensed for many years to the Downsview Chalet site and is now being the subject of a first registration.

FINANCIAL IMPLICATIONS

To forego a capital receipt of £100,000 in support of the Council's Housing Investment Programme.

OPTIONS

1.        To transfer the land at nil consideration to South Wight Housing Association, subject to the Association purchasing the land and proceeding with the housing scheme.

2.        To negotiate a monetary consideration with the Housing Association.

RECOMMENDATION

Option 1.

Contact Point: Tony Flower, Head of Property Services ☎ 823263