Issue - meetings

Loan to Exeter City Living for Clifton Hill Development

Meeting: 14/01/2020 - Executive (Item 13)

13 Loan to Exeter City Living for Clifton Hill Development pdf icon PDF 78 KB

To consider the report of the Director (DB).

 

Additional documents:

Decision:

Agreed

RECOMMENDED that Council approve, a loan to Exeter City Living of £15,643,478 to enable Exeter City Living to progress with the purchase of Clifton Hill and development of 44 new homes in the city.

 

Reason for Decision:

As set out in the report.

 

 

 

Minutes:

The Executive received the report which outlined an opportunity paper submitted from Exeter City Living to progress a residential development at Clifton Hill to develop 44 new homes. The report identified the loan required, the sales value, development costs and the projected profit. The report also included the details of the current value of the land and the forecast costs.

 

Members were informed that the loan was for the purchase of the site, the design and development of the 44 new homes and subsequent roads and infrastructure. Members noted that the building of a residential development, rather than student accommodation meant there would be an under-value in excess of £2 million which would require the approval of the Secretary of State.

 

Councillor J. Moore, having given notice under Standing Order No. 44, spoke on this item. She spoke on the green space at Clifton Hill and the commitment to reversing the unpopular decision to sell the land. She expressed concern that a large area of the green space to the side of the former sports centre was also reserved for development. She requested that assurances be given so that the community could trust in the Council’s plans for the wider site. Councillor J. Moore commented on a survey conducted by campaigners on how the community would like to see the land used, which showed the interest for an inner city nature reserve on the land currently occupied by the golf driving range and whether the Council would commit for the land to be kept for community use. She noted that the proposal to sell the land to Exeter City Living was more satisfactory than the original proposal but would only provide 25% affordable homes, and whether the number of homes could be revisited and on the necessity for the allocated car-parking space.

 

During the discussion, the following points were raised:-

 

·         Members had listened to the community’s desire that no student accommodation should be built;

·         By not disposing of the land on the open market, the Council would not be able to secure best consideration for the land. The level of the indicative undervalue  would require the Council to obtain approval from the Secretary of State;

·         The development of the site was a strategic challenge. The Council needed to ensure it received the best outcome before the Planning Committee considered any future planning application for the scheme and would include carbon neutral issues;

·         There was a requirement for the Council to meet the demand for 600 new dwellings every year in conjunction with the commitment to being a Carbon Neutral city. The proposal would ensure that there would be high quality housing on the land. The Development Company was designed to support the development in the city and set a standard for environmental performance; and

·         The Council and Exeter City Living would continue to consult and engage with communities on the development.

 

Following the discussion, Councillor Morse moved and was seconded by Councillor Bialyk to amend the recommendation and was voted  ...  view the full minutes text for item 13