Agenda item

To approve the disposal of the former Gas Showroom Site, Lombard Street West/High Street, West Bromwich.

Resolved:

1.1 That approval be given to the disposal of the former Gas Showroom Site, Lombard Street West/High Street, West Bromwich to Black Country Housing Group, as set out in Appendix A, for £270,000 for the delivery of 27 affordable rent dwellings, recognising that this figure is less than the Best Consideration that could be obtained for the site.

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1.2 That the Director of Regeneration and Growth be authorised to agree the terms for a conditional contract (subject to planning consent) for the disposal of the site to Black Country Housing Group.

1.3 That the Director of Law and Governance and Monitoring Officer be authorised to release a restrictive covenant placed on the site of the former Shaftesbury House, West Bromwich previously sold to Black Country Housing Group that restricts the permitted use for residential development.

1.4 That the Director of Law and Governance and Monitoring Officer be authorised to enter into or execute under seal, if necessary, any other related documentation in connection with the freehold disposal of the site referred to in 1.1 above.

Approval was sought to dispose of the former Gas Showroom Site, Lombard Street/High Street, West Bromwich to Black Country Housing Group for £270,000 for the delivery of 27 affordable rent dwellings.  It was recognised that this figure was less than the Best Consideration that could be obtained for the site.

Approval was also sought for the Director of Regeneration and Growth to be authorised to agree the terms of the conditional contract for the disposal of the site to Black Country Housing Group.  It was proposed to authorise the Director of Law and Governance to release a restrictive covenant placed on the site of the former Shaftesbury House, West Bromwich previously sold to Black Country Housing Group that restricted the permitted use for residential development and to enter into or execute under seal, if necessary, any other related documentation in connection with the freehold disposal of the site.

Reason for Decision

Black Country Housing Group were approached by Sandwell College to acquire the site of the former Shaftesbury House, High Street, West Bromwich.

To fulfil their Towns Fund application, Sandwell College required a site to deliver an engineering campus and identified the former Shaftesbury House site as the primary location.

Black Country Housing Group agreed in principle heads of terms with Sandwell College to dispose of the site and now required an alternative site to deliver their own residential project in accordance with Homes England funding.

Black Country Housing Group approached the Council to ascertain if the former Gas Showroom site, Lombard Street West/High Street, West Bromwich could be acquired to deliver their project.

Subject to satisfactory planning consent, Black Country Housing Group agreed to pay the sum of £270,000 to acquire the site. This was less than the £427,000 that the Council could achieve for the site, however, disposal of the site to Black Country Housing Group would enable the delivery of 27 much needed affordable rent units. It would also unlock several regeneration opportunities in the town centre and accelerate development in conjunction with the West Bromwich Town Centre Master Plan. As well as facilitating the new engineering campus on the Shaftsbury House site it would also enable Black Country Housing Group to deliver 27 affordable housing units on the former gas showroom site.

Alternative Options Considered

The Council could consider disposal of the freehold on the open market, but this may not generate a much greater level of capital receipt. It would also miss an opportunity to unlock two important regeneration opportunities to deliver education facilities and affordable accommodation in West Bromwich Town Centre.

Agreed:-

(1)    that approval be given to the disposal of the former Gas Showroom Site, Lombard Street West/High Street, West Bromwich to Black Country Housing Group, for £270,000 for the delivery of 27 affordable rent dwellings, recognising that this figure is less than the Best Consideration that could be obtained for the site;

(2)    that the Director of Regeneration and Growth be authorised to agree the terms for a conditional contract (subject to planning consent) for the disposal of the site to Black Country Housing Group;

(3)    that the Director of Law and Governance and Monitoring Officer be authorised to release a restrictive covenant placed on the site of the former Shaftesbury House, West Bromwich previously sold to Black Country Housing Group that restricts the permitted use for residential development;

(4)    that the Director of Law and Governance and Monitoring Officer be authorised to enter into or execute under seal, if necessary, any other related documentation in connection with the freehold disposal of the site referred to in Resolution (1) above.