Chichester District Council
Issue

Issue - meetings

Disposal of Grange Site. Midhurst

Meeting: 01/12/2015 - Cabinet (Item 110)

110 Development Site, The Grange, Midhurst

Further to minute 468 of 3 September 2013, this report provides an update on the disposal of the Grange development site.  Further to the exchange of contracts with a developer, there have been significant changes in the foodstore market resulting in a change to the terms offered for the site.  It is now recommended that Cabinet consider the revised bids for the site and determine on which basis the disposal of the site is to proceed.

 

Additional documents:

Decision:

RESOLVED

 

That none of the offers presented are acceptable in their current form and that officers be authorised to take the site back to market for disposal and then to bring a further report to Cabinet.

Minutes:

Further to minute 468 of 3 September 2015, the Cabinet considered the report circulated with the agenda (copy attached to the official minutes).

 

Mrs Keegan introduced the report, reminding the Cabinet that on 3 September 2013 they had resolved that two companies be shortlisted from those bidding for the Grange development site, with the Council then entering into a conditional contract for sale with one of the parties and a sale to be concluded on the grant of planning permission to that selected company. Subsequently a conditional contract had been exchanged with a development company, subject to a pre-let agreement with a foodstore operator.

 

Since that time there had been significant changes to the foodstore market, which had been widely reported in the national press, with the rise in online sales and low-price retailers.  Many foodstore operators had withdrawn from the acquisition of sites and in some cases abandoned planned store developments.  These changes had affected the Grange site and the proposed agreement the development company had intended to complete with a foodstore operator. The development company had withdrawn its offer and submitted a much lower one.

 

Following receipt of the revised offer, the officers had revisited the offer submitted by the unsuccessful shortlisted company to ensure that both companies were given equal opportunity to confirm their position in view of the changed market conditions. Discussions with both companies had resulted in one freehold offer and one leasehold offer being submitted.

 

The leasehold offer would require the Council to develop a foodstore and lease it to the operator. The build cost would tie up a large proportion of the Council’s capital reserves for an uncertain yield and considerable risk. The freehold offeror had done little background work at this stage and officers were not confident that it would come to fruition.

 

Mr Over reported receipt of a representation from the Midhurst Community urging the Council to achieve an agreement with the foodstore operator who had been involved in the previous negotiations.

 

With the Chairman’s consent, Mr Morley and Mr Shaxson addressed the Cabinet. Both acknowledged that circumstances had changed.

 

RESOLVED

 

That none of the offers presented are acceptable in their current form and that officers be authorised to take the site back to market for disposal and then to bring a further report to Cabinet.


 

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