Agenda item

Questions from Members of the Council under Standing Order No. 8

Minutes:

In accordance with Standing Order No. 8, the following questions were put by Councillor Thompson to the Leader.

 

Question - If Exeter City Council sell the Clifton Hill Sports Centre site for residential development preventing use of purpose built student accommodation could this produce an 'undervalue' in accordance with the Local Government Act 1972 as amended by later provisions?

 

The Leader responded that selling any land with restrictions of this type had the potential to reduce the value.

 

Question - Could Community Strategy/Well Being be a justification for 'undervalue ' if the City Council presents this argument for preventing the site to be used for purpose built student accommodation?

The Leader responded that the Council’s policy on disposals of assets at less than best consideration was agreed at Executive on 7th October 2003.  This policy provided that where the Council was minded to dispose of property at a value less than the best obtainable, then the Executive may decide to do so where such disposal would contribute to the promotion or improvement of the economic, social and environmental wellbeing of the area.

 

Put simply, any disposal of land at an undervalue of up of to £2 million would be decided by formal resolution of the Executive.

 

For any proposed sale where the undervalue exceeded £2 million, the Secretary of State’s formal consent would be required.

 

Councillor Thompson asked a supplementary question  - it states in the report by Professor Darren Smith,(of Loughborough University)commissioned by Exeter City Council, student accommodation is likely to increase with developers looking to build Purpose Built Student Accommodation (PBSA) in Exeter so how can the City Council guarantee no PBSA will be built on the Clifton Hill site when suitable sites are much in demand and a possible 4150 bed spaces in addition to those already planned could be needed in the near future?

 

The Leader replied that it was acknowledged that the city did need more purpose built student accommodation and that a small working group comprising of himself, the Portfolio Holder for City Transformation and the Chair of Planning Committee would be set up to look into this and to ensure the right balance of student accommodation in the city centre did not get saturated with PBSA. There was a need for family homes.  



Question - If the City Planning Authority were prepared to allow a student block with potential for greater density than residential accommodation could this create a considerable difference in land value?

 

The Leader replied yes it could.

 

Councillor Thompson asked a supplementary question  - with a PSBA already in the location near to Belmont Park would the Clifton Hill site attract student housing investors, which could make it difficult to justify an 'undervalue'?

 

The Leader replied that student accommodation would not be built on this site, nor the rest of the Bus Station site.

 

Question - If land value proved greater with high density purpose built student accommodation how would the City Council justify a substantial loss of capital receipts to the Community?

 

The Leader replied that this administration had been elected and indeed increased its majority on its manifesto. He continued that in the event that the sale of land with such restriction will reduce the market value, approval from the Executive would have to be sought on the basis that such sale at undervalue would contribute to the promotion or improvement of the economic, social or environmental wellbeing of the area.

 

Councillor Thompson asked a supplementary question - how will the site be used if the City Council restrict PBSA from being built on the site?

 

The Leader responded that he had reiterated that purpose built student accommodation would not be built on this site.


Question - Is the City Council looking to guarantee to the Community a development on the site will not be used as student accommodation if the development is not considered purpose built student accommodation?

 

The Leader responded that the restrictive covenant was only aimed at preventing purpose built student accommodation. This restriction may not prevent students living in dwellings constructed on the site.

 

Councillor Thompson asked a supplementary question  - will a Restrictive Covenant restricting the building of PBSA guarantee and prevent the site being used for student accommodation which is not purpose built?

 

The Leader replied that it would not be appropriate to stipulate who could occupy any potential dwellings and he would not want to prejudge any future planning applications.