Issue - meetings

The report sought agreement to the delivery mechanism for Innovation Park Medway North being via a direct disposal via a long lease to an interested party.

In May 2026 Cabinet had agreed the procurement strategy to select a development partner to deliver Innovation Park Medway North under a development agreement. Since this decision had been made, an offer had been received from an interested party, who would pay market value for the site, as well as deliver the Council’s required regeneration and economic development outputs. The disposal would be on a long lease and provide the Council with a mix an upfront capital receipt and a rent. The draft Heads of Terms were attached in the Exempt Appendix 1 to the report, with a summary of the key points contained within Exempt Appendix 3. Exempt Appendix 2 contained the Best Consideration Valuation Report.

Reasons:

The recommended option will deliver an early capital receipt ongoing revenue income, a reduction in the cost of external consultants, reduce the need for officer time, and deliver key outputs and development at the site, whilst removing the uncertainty of going to the market. The key points are highlighted in Exempt Appendix 3.

By delegating the authority to the Director of Place in consultation with the Portfolio Holder for Climate Change and Strategic Regeneration and the Portfolio Holder for Economic and Social Regeneration and Inward Investment  to finalise the Heads of Terms (Exempt Appendix 1) this allows for minor amendments to be made without having to return to Cabinet providing any amendments  are in keeping with the main principles. This avoids unnecessary delays to the programme.