Agenda item

Report attached.

Councillor Loraine Cox, Portfolio Holder for Regeneration and Wellbeing, provided a reportseeking approval to transfer the Council’s remaining freehold interest, as illustrated at Appendix 1, at the former Lyndon Playing Fields development, now known as Lyndon Park, to Keepmoat Homes Limited.

Councillor L Cox introduced the report, which dealt with the transfer of the land required for the final two phases of the development.  Approval was required to facilitate a departure from the terms of the existing sale agreement.

The Leader spoke about the controversial history of the development, but affirmed that change was necessary to provide new homes and to generate inward investment.  The development had already supported improved facilities for local sports groups and event organisers and would ensure the future vibrancy of the high street in Great Harwood.

Approval of the report was not deemed a key decision.

Reasons for Decision

The terms of the disposal of the former Lyndon Playing Fields, Great Harwood to Keepmoat Homes Limited (Keepmoat) were subject to a legally binding sale agreement which both parties had entered into on the 10^th November 2017.  Under the terms of the agreement, the Council owned land was drawn down in four phases (or parcels), subject to conditions which were specified in the agreement for sale.  Parcels 1 and 2 had been drawn down by Keepmoat and fully developed.

The development also included land in a third-party ownership, which had also been sold to Keepmoat.  This area of the development was situated to the south and southeast of the development site and now near completion.

Appendix 2 set out in the report illustrated the Lyndon Park development and areas, with the Council’s former land (Parcels 1 and 2) and land still to be transferred (Parcels 3 and 4) identified as to the north of the development area.  The remaining development land was former third party land with colouring to show progress with development.

Appendix 2 therefore shows that Keepmoat was nearing the final two phases of the Lyndon Park development, with Parcels 3 and 4 remaining in the Council’s ownership.  Under the terms of the agreement for sale the conditions for drawing down Parcel 3 of the Council land had been met.  Keepmoat were accelerating delivery with good recent sales (after a slow down) and were therefore seeking to draw down Parcels 3 and 4 at the same time and conclude the full transfer of the Council’s remaining land.

Under the terms of the existing sale agreement the Council were not yet required to dispose of Parcel 4 to Keepmoat, but they had requested this as they would now be paying the Council the balance of the purchase price for the Council’s entire ownership.  This would be a departure from the terms of the exiting sale agreement.

As stated above Keepmoat were due to pay the full balance of the land transfer, which had become due on the 10^th November 2021.  To date, under the terms of the sale agreement Keepmoat had paid the Council £1,711,808, and therefore a balance of £1,094,084 was now due from Keepmoat.  This would have to be paid by Keepmoat irrespective of whether the Council agreed to transfer Parcel 4 of its land.

Alternative Options considered and Reasons for Rejection

Under the terms of the sale agreement, Keepmoat’s request to transfer Parcel 4 to them was early.  The Council was not under an obligation to transfer Parcel 4 until 50% of the proposed plots on Parcel 3 (which would be 12 plots) had been constructed to roof level.

However, following a request from Keepmoat, consideration should be given to transferring the Council’s full freehold interest of the remaining land including Parcel 4, even though there was no obligation to transfer this parcel, recognising the strong partnership between Keepmoat and the Council in developing this site and potential future sites in the Borough, and on the basis it should conclude all legal and financial transactions simultaneously.

Decision                                     -    That Cabinet considers and approves the freehold transfer of land shown at Appendix 1 of the report to Keepmoat Homes Limited and delegates authority to the Head of Regeneration and Housing to finalise terms of the transfer in consultation with the Executive Director (Legal and Democratic Services) and authorises the Execute Director (Legal and Democratic Services) to finalise and execute all legal documents to conclude the disposal.