Issue - meetings

Background:

This report provided an update on the proposed disposal of land and the possible development of a new supermarket and Community Hub in Strood town centre. This had previously been discussed at Cabinet on 4 October 2011, and subsequently Council on 20 October 2011.

Members were advised that the purchaser had now advised that they were not prepared to be obliged to build the Hub (as this would also oblige them to build the store whether it wanted to or not) as a condition of the land sale and that it would only build the Hub if it built a new store on the site.

It was reported that whilst the decisions had not been explicit in stating that the sale of the land was conditional upon the purchaser agreeing to build the Community Hub, it was clear from the reports to Cabinet and Council that the main objective was to secure a new Community Hub. It was also noted that the planning consent, which had been obtained for the development, showed the Hub and the store as an integrated part of the same scheme.

Members were advised that under the terms of the purchaser’s suggested amendments to the transaction, the Council would still receive a substantial capital receipt from the sale of surplus property assets but the Council may not be able to secure the construction of or the use of the Hub.

Reasons:

To realise a capital receipt from the sale of surplus property assets.