Compliance with approved council policy.

Help to further the establishment of NMITE in Hereford, and in particular the specialist facilities it needs to engage and work with local businesses.

Following the award of enterprise zone status in August 2011 approximately 45 hectares (110 acres) of council owned land was included, along with other privately owned land, in the designated EZ. The EZ status has resulted in the council and occupiers within the EZ benefiting from a number of government incentives such as significantly increased awareness and profile of the location and opportunity, business rates relief and retention, improved access to broadband etc. These factors have resulted in an increase in interest from local, national and international businesses in active and advanced negotiations with the council to acquire land within the EZ.

This area of land is located next to the Shell Store at the North Magazine. We anticipate a good deal of beneficial interaction between the Shell Store and the new NMITE facilities. The Shell Store will be a natural location for business start ups generated by students graduating from NMITE.

The sale of the land is on a freehold basis. The purchaser will not accept or proceed with the purchase on any other basis.

Granting an option for the 1.6 acres immediately adjoining the site will give NMITE the certainty they need to help realise their next stage ambitions which is to build another specialist facility, subject to funding being available. This option is specific to NMITE and not transferable, any extension will be at the discretion of the Council. The sale will be based on market value at the time the option is exercised.

All the EZ land is being actively marketed, and is being sold according to independent land valuations and the EZ Land Disposal Policy which was approved by cabinet member on 7 January 2016. The agreed purchase price meets the market valuation. Valuation document attached.

This sale has the full endorsement of the EZ executive board.

The purchaser and their proposal have been assessed by the Hereford Enterprise Zone Board and deemed to meet the Placement Strategy, the Board’s set of criteria which each oncoming organization must achieve in order to progress onto the Enterprise Zone.

The decision to sell this plot supports council policy to use capital receipts from sale of land within the Enterprise Zone to fund the capital expenditure on installing necessary infrastructure across the site. The latest council decision to incur this expenditure is available via this link: http://councillors.herefordshire.gov.uk/ieDecisionDetails.aspx?ID=6182