Decision details

Appendix 1 contains an exempt schedule as it contains information on the price to be paid by the Developer for the site which is commercially confidential at this stage. The Exempt Annex is NOT FOR PUBLICATION by reason of paragraph 3 of Schedule 12A of Part 1 of the Local Government Act 1972.  This is because the information is considered to be commercially confidential as the sale contract has not been completed. The public interest test has been applied to the exempt information and it is considered that the need to retain the information as exempt at this stage outweighs the public interest in disclosing it. 

The Cabinet Member, authorised the Executive Director of Resources to release an operational asset and conclude a sale to MedicXGPG Holdings Ltd of land at Craig Street currently used as a car park.

The Council will receive a much-needed capital receipt to support the delivery of the Council’s Medium Term Financial Plan (MFTP).  This asset is listed for sale in the Council’s budget for the current financial year - 2013/14.

The new facilities at Craig St will result in the consolidation of two existing General Practitioner (GP) surgeries (North Street and 63 Lincoln Road). Both surgeries have outgrown their current premises. Moving into brand new purpose built accommodation will enable a wider range of health related services to be provided from a single location.

The following options were considered and rejected:

Option 1: Do nothing. The Councils car park on Craig St was identified as a possible development site initially for a range of uses including residential. It is not required to be held for car parking and does not require to be reprovided. Consequently, it has been earmarked for sale and included in the Council’s Budget.

Doing nothing would mean the Council would have to either reduce its spending on capital projects or secure additional borrowing to support the Council’s Budget. Given the proposed level of capital receipt it is more cost effective for the Council to sell the site and use the receipt than to continue to receive car park income at the levels it currently does from this site. Further details of this are set out in the Exempt Annex.

Option 2: Retain the property and generate additional revenue. The capacity of the Car Park is fixed at 120 spaces and the only way of increasing current revenue streams would be through a more competitive pricing regime. This option is not viable due to site constraints for intensifying use and the common pricing approach for short stay Council car parks.

Option 3: Re-use or redevelop the site as an alternative operational one for another Council service. No alternative operational requirements have been identified for the site. This option is not viable.

Option 4: Redevelop the site for an alternative use than the healthcare one proposed. The site has been identified as the ideal site for the use proposed due to its location and proximity to established GP facilities serving this area of the city. A sale of the site for healthcare is a use which will provide a higher price than residential which would appear to be the frontrunner alternative option if this proposal had not come forward. A sale for healthcare purpose therefore not only gives the Council a use on the site for which values are higher than residential land values but also can support the delivery of a wider range of healthcare services under one roof in state of the art premises.

None unless otherwise stated.

No additional documents were used.