Decision details

To accept a capital sum in return for the Council to release the purchasers of the T11 site from a clawback provision relating to the development use.

To enter into an agreement with Polofind Limited for development of the Shopping Park.

Update report on progress with project.

Update report on progress with project.

To seek approval and funding for the purchase of the T11 site and construction of the Shopping Park.

Update report on progress with project.

Update report on progress with project.

Update report on progress with the project.

To agree the award of the contracts for the Main Build and Section 278 works.

Update report on progress with the project.

Update report on progress with the project.

Update on progress with the project.

Appointment of Contractor to carry out the construction works & increase in contract for S278 works.

Update report on progress with the project.

Update report on progress with the project.

Authority to enter into lease agreements with retail tenants.

Update report on progress with the project.

The Portfolio Holder for Asset Management & Economic Development presented a report on the release of a clawback covenant relating to the former T11 site, which was proposed to form part of a new retail park in Langston Road, Loughton.

The Portfolio Holder reminded the Cabinet that the Council had sold the land known as the T11 site in Langston Road, Debden in August 2006 to Polofind Ltd for £6.05million. The original agreement had included a clawback covenant if the purchasers had obtained planning permission for a use on the site that substantially increased its value. The Council was progressing a development agreement with Polofind Ltd to develop this site along with the adjoining Council Depot in Langston Road for a retail park, classified as A1 use.

The Portfolio Holder reported that outline planning approval was granted on 20 July 2012. Subsequently, the Cabinet had approved supplementary District Development Fund finance of £150,000 on 9 September 2013 to cover half of the cost for contamination surveys with Polofind Ltd of the site and to submit a full planning application for the retail park development. The Council had appointed Berwin Leighton Paisner as legal advisers to negotiate a development agreement with Polofind Ltd to develop the retail park, but it would not be possible to finalise this agreement until the issue of the clawback covenant had been settled. The negotiated payment of £2.25million would be due three months after the practical completion of the retail park.

Decision:

(1)        That Polofind Ltd be released by the Council from the terms of the clawback clause relating to the sale of the former T11 site in return for a payment of £2.25million payable three months after the practical completion of the Langston Road retail park.

Reasons for Decision:

To obtain a valuable capital receipt for the Council and to allow the development agreement for the retail park  with Polofind Ltd to be progressed.

Other Options Considered and Rejected:

To not agree the capital payment for the release of the clawback provision. However, this would delay progress of the retail park development agreement and Polofind Ltd could decide to develop their site for a use that did not trigger the clawback provision.