To approve the marketing and sale of land for development proposals within the Hereford Enterprise Zone (EZ). The area comprises 0.96ha (2.36 acres) including 6 romney huts and surfaced bases let to third parties on various terms producing approx. £23,500p.a.  Selling the site creates the opportunity for a comprehensive redevelopment with enhanced build quality and job opportunities which meet the objectives of the EZ and the EZ land disposals policy.

That:

(a)  the council approves in principle the disposal of its freehold interest in Romney Huts 22, 24, 26, 46, 48 & 50 and Bases 23, 25, 47 & 49 on land extending to approximately 2.36  acres at Chapel Road, Rotherwas to the preferred bidder of an informal tender competition inviting redevelopment proposals for the site.

1.            Not proceeding with the sale as recommended above.

Advantages

None

Disadvantages

Would not market test development proposals that the private sector could deliver for this site.

Council left with low value low rent assets.

2.            Seeking a sale to the highest bidder

Advantages

Potentially, although not known until receipt of tenders, higher receipt for the Council for the land.

Disadvantages

The highest bidder will not necessarily produce best value in terms of economic benefit, particularly the number of jobs, quality of jobs created and quality of development.  To exemplify this, a large warehouse of 3,820 sq m could be accommodated on this site and may generate the highest land value.  This (under industry standards) would accommodate 54 jobs, at potentially minimum wage.  Alternatively an office/workshop mix of 7,640 sq m would accommodate a higher number of jobs (399), with a better mix of uses and wages but result in a lower land value.

3.            Selling existing units to existing occupiers

Advantages

Relatively simple process.

Disadvantages

Loss of income for the council with little change in economic value.  Individual units restricted in size and scope so very limited redevelopment potential.

4.          Redevelop the site using the Development & Regeneration Partner (DRP).

Advantages

Council retain ownership and revenue income from the development.

Direct control of lettings to ensure ez and economic regeneration objectives are maximised

Disadvantages

DRP not yet contracted so project delivery will be delayed

Scheme may be too small or financially unattractive to council and/or DRP