Issue - meetings

In view of local concerns over the decision to sell-off Council property at Frog End, Shepreth, has consideration been given to including an "up-lift" clause in any sales contract allowing the Council Tax payers of SCDC to benefit from the sale of any subsequent development?

Councillor JD Batchelor asked the Housing Portfolio Holder the following question:

In view of local concerns over the decision to sell-off Council property at Frog End, Shepreth, has consideration been given to including an "up-lift" clause in any sales contract allowing the Council Tax payers of SCDC to benefit from the sale of any subsequent development?

Councillor MP Howell, Housing Portfolio Holder, advised that, having taken advice from legal services and the Council’s Valuers, an up-lift clause would only be required in respect of the Frog End property in the event of the land being sold below market value.

By way of a supplementary question, Councillor Batchelor requested the Portfolio Holder revisit the matter, as his understanding from similar transactions involving the county council was that up-lifts could be applied in situations such as Frog End in which a future developer could achieve huge net profit.

The Portfolio Holder replied the ultimate benefit from such clauses on commercial land was negated through a short-term drop in value; however, he undertook to liaise with colleagues at the county council with a view to clarifying the matter further.

Cabinet, with five in favour, one against and one abstention, AGREED the sale of land at 74-76 Frog End, Shepreth for private development to maximise the return to the Council on its asset, enabling the development of new affordable housing within Shepreth, improvements to Council housing in the District, and / or other Housing capital expenditure. 

Cabinet, with five in favour, one against and one abstention, AGREED the sale of land at 74-76 Frog End, Shepreth for private development to maximise the return to the Council on its asset, enabling the development of new affordable housing within Shepreth, improvements to Council housing in the District, and / or other Housing capital expenditure.

Two properties, 74 and 76 Frog End, Shepreth, had been vacant for several years and had deteriorated to the point that it was more economical for the buildings to be demolished and rebuilt than repaired; the Council had to consider whether to transfer the land to a housing association, sell it to a private developer or sell some of the land to a developer and transfer the remainder to a housing association.  The Housing Portfolio Holder preferred the transfer of the land to a housing association, contrary to the officer recommendation.

Councillor Dr SEK van de Ven, local member, explained that there were different views held locally but all parties would like to see the matter resolved as soon as possible.  She and the Parish Council supported the proposal for the land to be transferred to a housing association.  Shepreth Parish Councillors Mrs J Ravenhill and Ms D Thomas, in attendance, spoke in favour of transfer to a housing association as the only way to guarantee affordable housing development in the village.  Mr A Jones, a resident of Frog End, preferred that the Council sell the land to a private developer, as he believed that the location was unsuitable for affordable housing, with the rail and bus services more than half a mile away and the road in poor condition.  The Leader confirmed that this decision should not be seen as setting a precedent, as every site was considered on its merits.

Cabinet, with five in favour, one against and one abstention, AGREED the sale of land at 74-76 Frog End, Shepreth for private development to maximise the return to the Council on its asset, enabling the development of new affordable housing within Shepreth, improvements to Council housing in the District, and / or other Housing capital expenditure.

The Housing Portfolio Holder AGREED to recommend to Cabinet that the land be transferred to a Housing Association.

Not for call-in: final decision to be taken by Cabinet.

The Housing Portfolio Holder AGREED to recommend to Cabinet that the land be transferred to a Housing Association. 

This item was dealt with before the Wisbey’s Yard item.

Two members of Shepreth Parish Council were in attendance for this item. 

The Corporate Manager, Affordable Homes, presented a report to provide the Portfolio Holder with the information needed to make a recommendation to Cabinet on the options for the properties at Frog End.

The Portfolio Holder was advised that it could not be guaranteed that any capital receipts from the sale of the site be used for the provision of low cost housing provision in the village.

The Portfolio Holder was further advised of a scheduled bus service that passed in close proximity to the site and provided a service to both Royston and Cambridge on an hourly basis.

In summary the Portfolio Holder said that although the sale of the site to a private developer would be his preferred choice, he would wish to see the capital receipts ringfenced for affordable housing in the village. 

As it would be impossible to make this guarantee the Housing Portfolio Holder AGREED to recommend to Cabinet that the land be transferred to a Housing Association. 

Cabinet AGREED that retention and refurbishment of the existing units for shared ownership be the preferred option for the pair of semi-detached properties at 74-76 Frog End, Shepreth. 

In view of the anticipated costs of refurbishing two semi-detached three-bedroom houses at 74-76 Frog End, Shepreth, an options appraisal had been undertaken to determine whether the properties could be acquired for refurbishment by a partner Registered Social Landlord (RSL), sold on the open market, sold for general redevelopment purposes or disposed of to an RSL partner for redevelopment of the site as affordable housing.  The Housing Portfolio Holder drew members’ attention to the results of the local consultation exercise, which showed that the proposal for the Council’s retaining and redeveloping the site as shared ownership housing was supported by the local member, parish council, Frog End Residents’ Association and tenants.  She confirmed that the refurbishment would result in better properties than existed at present and that the Council would seek to ensure that 100% of the equity could not be available for purchase, therefore retaining the properties within the Council’s affordable housing stock.

Councillor Dr SEK van de Ven, local member, reported that the number of responses she had received from residents demonstrated the need for affordable housing in Shepreth and suggested that redevelopment within the existing footprint would be acceptable as long as adequate parking were provided.  She clarified that she supported the recommendation, but also a small-scale development as, due to traffic issues, she could not support any high-density development.

Cabinet AGREED that retention and refurbishment of the existing units for shared ownership be the preferred option for the pair of semi-detached properties at 74-76 Frog End, Shepreth.