The Thornfield Mews development at Canal Wharf
was identified as being at risk of stalling. A number of options
were considered to ensure that the development continued. This
included the purchase of two properties already nearing completion
(a separate officer decision has been submitted for this) but in
order to ensure all phases of the development took place and
sufficient RTB 141 expenditure was spent the Housing Service
explored the opportunity to buy all six properties that make up
phase 1B of the development. The purchase of these properties will
provide the developer with the capital to build out Phase 2 of the
development.
Rather than buying “off plan” in the usual way, CBC
will purchase the undeveloped / partially developed land and the
developer will enter into a development Agreement to build the
houses. In practical terms this is the same as the developer
building the house and CBC buying it off him, but it helps with
cashflow and allows CBC to fund the development in stages whilst
CBCs investment is protected as it has title to the land.
This approach has been checked by the Monitoring Officer who
advised:
'In the circumstances I consider that the existing authority to
purchase is sufficient.'
The existing authority referred to is that under the Housing
Acquisitions Policy.
The price agreed for all six properties is £1,054,320m
(@£175K each).
The properties have been run through the Strategic Acquisitions
Calculator and are cost effective.
Decision type: Key
Reason Key: Decision to dispose or acquire any interest in land or buildings with a value of £50,000 or more;
Decision status: Recommendations Approved
Notice of proposed decision first published: 08/01/2020
Decision due: 23 Dec 2019 by Assistant Director - Housing
Contact: Liz Cook, Service Director - Housing 01246 345150 Email: liz.cook@chesterfield.gov.uk.