To approve the council’s purchase of the Three Elms Trading Estate from the Homes and Communities Agency at market value, estimated to be in the region of £1.75 to £1.85m, which will enable the council to release value from its adjoining land.

The Cabinet Member, Contracts and Assets introduced the report for the council acquisition of the Three Elms Trading Estate, Hereford from the Homes and Communities Agency. The estimated cost of the purchase of the site and further investments in the site are £2.6m.

The Director for Economy, Communities and Corporate went on to confirm the area is important employment land for the north of the city. A number of businesses are interested in moving to the estate, which would increase occupancy to 95%. This is an opportunity to buy the land at a reduced price, the rents received will cover the costs and it will also release the adjoining land which the council already owns.

It was clarified the new developments mentioned in paragraph 5 of the report are to be on the part of the land not yet developed.

Resolved

THAT:

(a)  Council are recommended to approve (as part of the 2015/16 capital programme) the allocation of £2.6m for;

                              i.        the purchase of the freehold interest of the Three Elms Trading Estate from the Homes and Communities Agency; and

                            ii.        investment of around £850k in the estate to improve the site infrastructure thus improving the prospect of further investment in the development of the vacant land and improvements to the existing buildings; and

(b) Authority be delegated to the Director of Economy Communities and Corporate (in consultation with the Cabinet Member, Contracts and Assets, the Chief Financial Officer and Assistant Director Governance) to determine agreement of acceptable terms as to land acquisition and infrastructure investment as referenced in recommendation (a) above.