Decision details

The Cabinet Member delegated authority to the Corporate Director Resources in accordance with  Part 3 3.16.3 (b)for transferring the freehold interests of various Council owned assets at Fletton Quays to P.I.P (Fletton Quays) Limited and in the case of Pleasure Fair Car Park to P.I.P (Pleasure Fairs) Limited.

The recommendations within this Report follow on from those decisions taken in February 2014 to create a development partner joint venture and in December 2014 the rationale and mechanics for the creation of PIP and the approval of a project plan in July 2015. The Council entering into option agreements and then transferring land following the approval of project plans is consistent with the legal agreements governing how PIP will work with the Council to deliver the underlying aims of the Council to bring forward development on key city centre regeneration sites.

The following options were considered and rejected:

Option 1: Do nothing.

The Council has set up the joint venture partnership with the private sector (PIP) to take forward the development of these key sites by transferring land assets with PIP seeking planning consent and identifying development partners. The way in which the PIP has been constituted and the processes for transferring land mean that the Council can marshal the proposed development of sites. It would not have done this if it had concluded that this was not the preferred way in bringing forward regeneration so a do nothing option is really contrary to detailed work that has been carried out by both PCC and its development partner Lucent since PIP was formed in December 2104.

The Council has already built into its budget the expectation of receiving a capital receipt for the sale of certain sites and has made limited revenue provision for covering ongoing liabilities. FQ includes two listed heritage railway buildings and former office block (Aqua House) all of which have recently been subject to vandalism. A transfer of land now, given that the PIP has advanced the planning application will mean the Council no longer having to cover the rates liabilities and other costs associated with holding vacant sites and buildings earmarked for redevelopment. 

It is also important to note that the PIP is responsible for bringing forward the planning application and securing development partners to provide both on site infrastructure such as roads and utility supplies not the Council. Consequently the Council’s risks are significantly reduced than seeking to bring these site development proposals through a different means. 

Further, doing nothing, in this case not transferring the land will mean the Council is in breach of contractual obligations set out in the option agreements with potentially serious implications. See Section 9.2 Legal Implications.

Option 2 – Retain the assets and generate revenue.

The Council by setting up the PIP, entering into option agreement in May 2015 and approving the Project Plan in July 2015 have made a clear statement that it has no intention of retaining those assets now subject to the option agreements. The FQ site consists of listed former railway buildings; a 1970s built office block (beyond economic repair) and a cleared brownfield open area with identified constraints.  It would require considerable expenditure to produce a revenue stream which would cover the capital cost of achieving a positive return in the short term. The Council will retain all income from the PFCP until the site is required by the PIP for development, by virtue of a leaseback arrangement.

This option is not viable and again there will be potentially serious implications of not transferring the assets. See Section 9.2 Legal Implications.

Option 3 – Transfer the various assets in accordance with the Option Agreement

Recommended option given it is consistent with the work the Council and its joint venture partner Lucent (Peterborough) SARL have been doing to initially set up the PIP and then bring forward planning applications.  This is also the legally compliant option for the Council having already entered into Option Agreements covering the two sites.

The Cabinet Member for Resources would ordinarily consult with the Leader of the Council, Councillor John Holdich and Cabinet Member for Growth, Planning, Housing and Economic Development – Cllr Peter Hiller. However as both are PIP Board Members this has not been the case when considering this decision.  Consequently the Deputy Leader, Councillor Wayne Fitzgerald has been consulted. Decisions to sell land, upon whatever basis, however does form part of the Cabinet Member Resources remit.

Medium Term Financial Plan

http://democracy.peterborough.gov.uk/documents/s22975/9b.%20Budget%202015-16%20and%20MTFS%202024-25.pdf

Approval to progress the setting up of a Joint Venture

Feb 2014 - http://democracy.peterborough.gov.uk/ieDecisionDetails.aspx?ID=903

Approval to create Peterborough Investment Partnership

Dec 2014 – http://democracy.peterborough.gov.uk/ieDecisionDetails.aspx?ID=1022

Approval of Peterborough Investment Partnership’s Project Plan

July 2014 - http://democracy.peterborough.gov.uk/ieDecisionDetails.aspx?ID=1110