SUMMARY/PURPOSE

1. This report proposes a recommendation to the Full Council to vary the capital budget for 2002-2003 to facilitate the purchase of land facilitating access to the planned major development site at Pan, Newport.

REASON FOR URGENCY

2. The Executive decided on 20 August 2002 to pursue negotiations with the owners of land currently preventing preferred access to the planned development site at Pan. During the course of these negotiations, in the week commencing 18 November, the principal landowner entered into receivership. New negotiations, initiated by the Receivers, commenced after the publication of the forward plan which took effect on 1 December 2002, and after the dispatch of the agenda for this Executive meeting. The duties of the Receiver are such that they are seeking a quick resolution to their proposal to sell the land in question. It is unlikely that the offer set out in this report will remain open until the January Forward Plan is published and a meeting of the Executive considers the issue at its first January meeting.

3. For the purposes of the Access to Information Procedure Rules, the report is one of special urgency. The Chairman of the Select Committee for Resources, which is the relevant Select Committee for the purchase of land, has agreed with the Leader of the Council that in all the circumstances it is not reasonable to defer the decision to a future meeting of the Executive.

DECISION MAKING PROCESS

4. As a report taken under the special urgency provisions, the Executive can, constitutionally, take a decision on the recommendations set out in this report. The decision to purchase the land, if approved, will be subject to a recommendation to Full Council to amend the capital budget for 2002-2003. Executive decisions are normally subject to call in, with this being a route to refer decisions outside of the budget or policy framework to the Full Council. As the report proposes an immediate recommendation to Full Council it is not necessary to suspend the call in mechanism due to urgency.

STRATEGIC CONTEXT

5. Theme 7 of the Community Strategy establishes a long term strategic framework for the delivery of specific strategic plans designed to ensure quality in the built environment. Actions 7.4, 7.9 and 7.11 refer to the development at Pan, Newport in particular and the need to undertake such development in the context of Supplementary Planning Guidance and the UDP. Theme 4 of the Community Strategy similarly establishes a framework for supporting jobs and the economy. Action 4.6 makes the connection between the need to develop housing choice and Action 4.5 recognises the need to make land available for employment development. The recommendations in this report are wholly consistent with these themes and actions.

6. The site to which access is facilitated and therefore the land under discussion, as the preferred access point, is integral to the Unitary Development Plan and to the Urban Capacity Study (which appears elsewhere on this agenda). The Housing Needs Survey and Managed Release of Housing Sites Supplementary Planning Guidance sets out in more detail the strategic context of the proposed acquisition.

BACKGROUND

7. The Council has been planning and organising for the development of a major landholding in and around Pan since the 1980s when the South Eastern Relief Road, Newport was built and designs for access into these landholdings from St George’s Way have been on-going since that date and indeed land acquisitions have also pursued this proposal. More recently the Council has authorised the development of a planning brief to bring forward the allocated housing and employment land at Pan for development and the Executive has also authorised officers to negotiate with third party landowners for access into its land at Pan on the understanding that a further report would come back to the Executive at some stage.

8. A plan indicating the area concerned is attached, showing access to the Council’s land from St George’s Way. Members will recall that earlier this year the Council had received an approach from the proposed developer of the adjoining football training pitch to enter into discussions for the provision of a roundabout and access road. That approach came from a company which held an estate contract to acquire the practice pitch for development. At that time the proposal was that the Council should work together with the Company for an access to its land from St George’s Way by reaching a joint agreement concerning the practice pitch at Newport Football Ground as the route of an access. The terms for that agreement have been under discussion over several months with both parties working to achieve a mutually acceptable agreement but those terms have not been settled or finalised. It is understood that the Company has now disposed of its estate contract to the Receiver and will play no further part in this process.

9. What has changed to set aside the original process is that the landowner has gone into receivership. The offer put forward by the Receiver to the Council is for the entire 4.16 acres of the training pitch and not just the width of land necessary for the access which is of prime importance to the Council.

ACCESS

10. The Council will want to be assured that access into the Council’s land is required from St George’s Way and that this is the best access into the land at Pan.

11. The Unitary Development Plan indicates that the site should be accessed from the north at Staplers Road and at the south from St George’s Way and in the planning brief for this site it states that consideration needs to be given as to whether a service road/link road connecting these two points would be desirable to help relieve traffic pressure at Coppins Bridge.

12. The alternatives available to the Council are:

· To use the existing highways through Pan Estate onto Staplers Road and St George’s Way. Although a secondary link for local traffic would be sensible (and convenient routes for buses, cycles and pedestrians will certainly be required), it would not be acceptable to load Furrlongs and Pan Lane with significant additional traffic, either in traffic capacity or environmental terms. Therefore the primary access into the new development should not be through Pan Estate.

· Another alternative would be to construct an access from the existing roundabout at St George’s way, across the allotments then across Great Pan Farm or part of the football ground down on into Pan Lane. This proposal would involve relocation of statutory allotments and the acquisition of other third party land which would in any case raise the same cost issues as set out below.

· Another alternative would be to take the access further to the south than the practice pitch and use Pan Lane. This however is constrained by rising land levels, the need to upgrade Pan Lane in terms of gradient, alignment and width and again require the acquisition of lands from third party landowners.

By installing a roundabout at St George’s Way to provide access across the training pitch, the Council as Highway Authority would also be able to introduce a left turn only restriction from Shide Road, eliminating the right turn into Blackwater Road with significant safety benefits. (The existing roundabout is too remote from Shide Road for this to be a practical option.) This would also rationalise the left turn exit from the football club for northbound traffic. It may also allow the existing Burnt House Lane/St George’s Way junction to be closed, with the construction of an alternative route to St George’s Lane, although this aspect would require further investigation.

PLANNING

13. The planned expansion of Newport to the south east of Pan consists of over 20 hectares of land, primarily owned by the Council, and is allocated for housing (H3(13)), employment use (E5(4)), tourism/leisure uses (T7(h)) and open space corridors within the adopted Unitary Development Plan (UDP) 2001. Appendix A of the UDP states that any development should be accessed from Staplers Road to the north and St George’s Way to the south and indicative arrows are shown on the proposals map in these locations. The Council is about to seek expressions of interest from consultants to carry out a master plan for the area.

14. Access from St George’s Way will allow a comprehensive approach to both servicing the allocated housing and employment land and also appropriate development at Newport Football Club including the practice pitch which is identified in the UDP as suitable for tourism/leisure uses (T7(h)).

15. Two planning applications have yet to be determined for this site. The first submitted in December 2001 is on behalf of Kingcross Ltd and Chelverton (West) Ltd is for Health and Fitness Centre, Public House, Creche and Budget Hotel (80/100 bedrooms). The second, submitted on behalf of Kingcross Ltd only is for a Public House/Family Restaurant, Budget Hotel (40 bedrooms), Health and Fitness Centre, Creche and Fast Food Outlet. The applications remain undetermined because full traffic impact analysis has yet to be completed.

HOUSING

16. This site forms a major part in the delivery of the Council’s housing strategy over the coming period. Earlier this year the Council completed the Housing Needs Survey confirming housing need and the demand for housing exceeds affordable supply. In addition, members have recently considered the Urban Capacity Study and Phasing Report which will be adopted as supplementary planning guidance confirming the need to release the land at Pan to meet the Regional and Island housing requirements.

17. For the Council’s land at Pan it is expected that a higher proportion of the development than currently sought on allocated housing sites (20%) will be provided to meet the need for affordable housing. This would either be by way of Housing Association development or through private developments made available to registered social landlords at 50% of the market value. It is hoped that in the scheme as a whole more than 20% of the units could be affordable housing, although the precise amount would depend on the availability of funding. The Council may consider making land available for Housing Associations at reduced cost. It is expected that any affordable housing would be grouped throughout the development rather than concentrated in one particular location. Further, it is anticipated that the overall density of the scheme would be in the region of 35-40 units per hectare, although the densities will vary between different parts of the site to provide interest and variety.

TERMS FOR ACQUISITION

· The Council has purchased a short option to acquire this property on or before 12 December 2002 at a price of £5,000. This decision was taken by the Portfolio Holder for Resources following officers’ recommendations on Friday, 29 November 2002.

· The asking price for this site is £675,000 payable to the Receiver for Newport Football Club.

· The property is understood to be freehold and free from restriction.

· Exchange of contracts to take place immediately after the 11 December 2002 Full Council meeting and before 12 noon on 12 December 2002.

· The Council will also acquire pre-emption rights to sites A and B shown on the plan, at open market value. Equally if the Council does not acquire these sites then the Council will not bar access thereto.

· The Council to pay both vendors proper costs.

VALUATION

18. As indicated previously, the area of the practice pitch being offered to the Council amounts to some 4.16 acres of land which is currently identified in the UDP as suitable for tourism and leisure uses. Several proposals have been put forward for this site and two planning applications are currently pending. Whilst the Council’s prime goal is access across the site, with the whole area being offered this makes the Council a special purchaser, and given the purchase is approved then the Council would have opportunity to consider future use of such a large area. Because the Council is a special purchaser, two independent professionally qualified surveyors have been asked to advise on value and are aware of the above terms. Both these advisers confirm that in their professional opinion the price being sought is to be recommended to the Council as good value for money and best consideration.

LEGALITY

19. The Council has both general and specific powers to purchase land. The proposed purchase is necessary to facilitate strategic development, primarily of housing (including social housing) but also other purposes included within the Unitary Development Plan, such as tourism and employment. It is likely that part of the land will be appropriated to highway use, and other parts of the land appropriated or disposed of for other purposes, in order to facilitate these strategic objectives. However, as the land will be used for a variety of purposes and because detailed implementation plans, particularly a master plan for the development, are not in place and therefore the areas intended for particular uses have not yet been established, it is not proposed to rely on specific powers such as those contained in the Housing Act 1985, the Highways Act 1980, or the Town and Country Planning Act 1990.

20. The relevant general powers are s120 Local Government Act 1972 and Part 1 Local Government Act 2000. The 2000 Act creates a power of first resort to do anything, having regard to the Community Strategy, which promotes economic, social or environmental well-being of the area. This report makes explicit the contribution to the themes and actions within the Community Strategy which purchase of the land will facilitate. The power under the 1972 Act is to acquire land for the benefit, improvement or development of the area. As a step to facilitate the improvement and development of the area set out in the various strategic plans referred to above, the purchase will be lawful under the combined effects of s120 and s111 of the 1972 Act, in the event that the power of first instance under the 2000 Act proves inadequate.

OTHER CORPORATE CONSIDERATIONS

21. In terms of other cross-cutting issues facing the Council, there is an equalities issue in terms of the Council’s work to reduce bed and breakfast housing provision and the supply of housing to all the community. Crime and disorder is not a topic for consideration at this stage but will be a matter when the master plan design process gets underway as will be a sustainable community.

RISK MANAGEMENT

22. An important area that has to be considered at this time is the matter of risk management. In terms of risk there are the following issues for consideration :

· As this is an urgent item the Council needs to be assured that the decision making process fits with the constitution and this has been set out earlier in the paper.

· The failure to achieve Council objectives and policies and the time that delivery may take. At this stage the fact that the Council has a willing vendor is extremely important as Members will well know the need to resort to statutory powers can cause long delay and over time the price will undoubtedly increase.

· Members will ask whether or not the price is best consideration that may be reasonably obtained in the circumstances. As indicated above, the Council is a special purchaser and has been able to secure an arrangement that independent qualified valuers are happy to support.

· The risk of not securing the purchase is a lost opportunity to make progress towards the strategic objectives quicker and probably cheaper, than otherwise planned BUT that if the opportunity is lost, the status quo is restored and the need will be to proceed, as intended, by negotiation or CPO.

· If the Council proceeds there is an opportunity cost to other parts of the Capital Programme. This will be addressed in the financial paragraph below.

NEWPORT FOOTBALL CLUB

23. The capital receipts from the sale of land under the recommendation will be paid to the Receiver of Newport Town Football Club. The fact that the Receiver has created the opportunity to purchase the land earlier and in a different manner to that anticipated by a previous decision of the Executive has brought this report forward. The identity of the current landowner and the benefit which the capital receipt will bring to the creditors or to the insolvent company are not relevant considerations in determining whether or not to purchase the land.

CONSULTATION

24. A wide-ranging group of officers have collaborated to bring forward this report, including the Heads of Planning, Housing, Highways, Finance, Legal and Property Services. As part of the master planning process it is proposed that the Island community will be involved at all stages in the planning process before any detailed schemes are brought forward and before any development takes place. Because the acquisition of this land impacts on a number of strategic plans, including the Corporate Plan, the Housing Strategy, the UDP and Local Transport Plan, all of which have undertaken separate consultation, it was not necessary to carry out further consultation.

25. The Portfolio Holder for Economic Development has opened discussions with SEEDA which may in the future assist with the current shortfall in capital receipts to the Council.

FINANCIAL IMPLICATIONS

26. The current year’s capital programme of £28.5 million is based on Government Grants, Capital Allocations and assumed capital receipts of £1.6 million. It is currently anticipated that there will be a temporary shortfall of £1.0 million in capital receipts, which will be managed by Directors through natural and/or planned slippage until such time as the receipts are realised.

27. The cost of the acquisition of this land, including fees and stamp duty, amounts to £750k, and there is no provision for such expenditure in the current capital programme.

28. The cost of acquisition could however be met from the Repairs and Renewals Fund. Commitments against this Fund have been revisited and there are sufficient resources to fund this expenditure in the short term. The Fund would then be fully committed but could be replenished by having first call on capital receipts arising from the disposal of Council land in the broad area of this site.

29. It is however important to note that the use of the Repairs and Renewals Fund in this way will pre-empt in the short term its potential use for other possibilities eg e-government/ICT needs etc.

EVALUATION

30. The Council really is faced with three options:

· The Council could continue negotiations with the existing landowners in the hope of deferring action or negotiate with new landowners. New landowners could take a different view from the current landowner and in any case there will be a price consideration.

· Alternatively, the Council could look to devise a new access route or ignore the need for the access route but this would be a fundamental change in the Council’s policy and all the indication and proposals the Council has worked up in the past.

· Thirdly, the Council could look to use its planning powers or statutory powers to acquire the access at some time in the future. If the Council did do this and on the basis that a CPO is granted there would still remain to be the payment of compensation, the Council may be no better or worse off than the offer now put forward.

RECOMMENDATION

1. That the Council acquires the approximate 4.16 acres of land off St Georges Way, Newport, on the terms set out in this report subject to the Full Council agreeing to amend the capital budget for 2002/2003 and

2. The Executive recommend to the Full Council that the Capital Programme be amended.

BACKGROUND PAPERS

Executive Paper 13 August 2002

Executive Paper 16 October 2001

ADDITIONAL INFORMATION

Pan survey advice regarding affordable housing to the Port Folio Holder of Social Services and Housing.

Contact Point : Tony Flower, ( 823263, e-mail: tony.flower@iow.gov.uk

M J A FISHER

Head of Paid Service and Strategic Director of Corporate and Environment Services

R R BARRY