41232


41232

SALE OF LAND AT SHARROCK CLOSE,

NORTH ORMESBY, MIDDLESBOROUGH

EXECUTIVE MEMBER FOR RESOURCES

COUNCILLOR NICKY WALKER

PAUL SLOCOMBE, DIRECTOR OF RESOURCES

10 May 2006

PURPOSE OF THE REPORT

1.To report on the proposed terms of the sale of the freehold interest in land at Sharrock Close and Trinity Crescent North Ormesby to Tees Valley Housing Group and the reasons behind the recommendation.

BACKGROUND

  1. The Council owned site is approximately 0.98 acres, and is shown hatched red on the attached plan ref VAL 4879B. It forms part of the land recently marketed at Trinity Crescent, North Ormesby.
  2. The successful bidder for the Trinity Crescent redevelopment site is required to provide 40 units of affordable housing. Haslam Homes were approved as successful Bidder for the site by Decision of Individual Executive Economic Regeneration and Culture at the meeting held on 18th August 2005.
  3. Tees Valley Housing Group, the purchaser, is working in partnership with Haslam Homes in the provision of affordable housing on the Trinity Crescent site. Development is to take place over a number of phases. The subject land is required for the first phase of building and comprises 22 units, a mix of 14 houses and 8 bungalows. Planning consent for the development on this site was granted on 3 March 2006.
  4. This sale will enable Tees Valley Housing Group to purchase the land and then enter into a construction contract with the developer, Haslam Homes
  5. The sale of this site will meet the requirements of the development brief that the first phase should provide half of the affordable housing at the western end of the site and to the north of market square.
  6. The development forms part of the regeneration identified in the Trinity Crescent Masterplan, which was approved by the Council’s Executive in March 2004
  7. Most properties on former Trinity Crescent Estate have been demolished and there are only 23 still occupied. In order to offer suitable accommodation to all residents, the first phase of the building redevelopment is intended to meet the requirements of these residents. TVHG proposes to provide properties on the subject site so that existing residents if they so choose, subject to suitable financial arrangements, are able to make a single move from their current property to a new property in the immediate locality.
  8. A Scheme for the redevelopment of Trinity Crescent phase two, has been prepared by Haslam Homes and a planning application has been submitted in March 2006.

OPTION APPRAISAL/RISK ASSESSMENT

  1. Tees Valley Housing Group has made a formal offer to purchase the site. The offer is based on a detailed financial appraisal for the scheme in accordance with the development brief.
  1. A risk assessment is not considered necessary.

FINANCIAL, LEGAL AND WARD IMPLICATIONS

  1. The proposed sale will produce a capital receipt of £165,278 (One Hundred and Sixty Five Thousand Pounds Two Hundred and Seventy Eight Pounds).
  1. A further report in respect of the Trinity Housing Redevelopment scheme will be submitted in due course when the terms of the development agreement with Haslam Homes have been provisionally agreed. This further report will address the matter of allocation of capital receipts for all land in this scheme, including the sale to Tees Valley Housing Group.

LEGAL IMPLICATIONS

  1. There are no legal implications other than the completion of legal documentation.

WARD IMPLICATIONS

  1. The proposal forms part of the wider Trinity Crescent Initiative, which is a regeneration scheme for the benefit of North Ormesby and Brambles Farm Ward.

SCRUTINY CONSULTATION

  1. This is not considered necessary.

RECOMMENDATIONS

  1. That the disposal be approved as part of the wider North Ormesby Initiative to regenerate the Trinity Crescent area and to provide affordable low cost housing in the locality.

REASONS

  1. The land forms part of the housing site cleared in preparation for the redevelopment of the area. The proposed disposal will be the first phase of a major housing scheme in the area and will contribute 22 new low cost housing units for the regeneration of the locality.

BACKGROUND PAPERS

  1. The Trinity Crescent Masterplan and the report attached to the Individual Executive decision dated 18th August 2005 were used in preparation of this report.

AUTHOR: ANN HOOPER

TEL NO: 727453
______

Address: HBS, Rede House, Middlesbrough

Website:

41232