Agenda item

DECLARATIONS OF INTEREST

Councillors Fletcher, Laing and Young all declared interests in the report referred to in the following article by reason of their differing associations with the development company involved, Carlton Rock Limited. Councillor Yuill declared an interest as he resided near the development.  All the members who declared an interest left the meeting prior to the Committee’s consideration of the matter.

With reference to article 40 of the minute of its meeting of 28 January, 2010, the Committee had under consideration the latest report dealing with the future use and disposal of the mostly Council owned sites at Countesswells Road, Aberdeen referred to individually as the Pinewood site and the Hazledene site.  The report was in the name of the Director of Enterprise, Planning and Infrastructure and sought to review the current position by referring to the status of the ongoing discussions between all parties having an interest and the options now open to the Council, including the associated risks and benefits for each option and to offer recommendations for the way forward, with supporting rationale.

The report began with background information related to ongoing issues that remain unconcluded; with an update on each of the issues identified, including a references to the now resolved impasse between the Council and Carlton Rock Limited as the development company with an option agreement with the Council’s tenants on part of the land in question; and to perceived changes in the housing market conditions, which noted the receipt by the Council of an unsolicited offer to acquire both of the development sites.  The report proceeded to outline the three main options available to the Council, as discussed with their external advisers and in respect of which the identified risks were also highlighted.  The conclusion arrived at within the report by officers and external advisers, was that any further progress in the matter would require clarification by the Committee as to whether it either wished to discontinue all discussions with interested parties and await the end of the current lease of part of the land involved (2020), when all options available at that time would be reconsidered, or to restate its intention to take the sites to the market at an appropriate time.

The report recommended:-

that the Committee –

(a)       notes the confirmed information now available regarding the tenant’s option agreement with Carlton Rock, its significance and potential impact on this property transaction, the options open to the Council and the potential risks and benefits associated with each option;

(b)       decides between the two options of (1) discontinuing all discussions regarding the future use of these sites until immediately prior to the expiry of the current lease in 2020 and reconsider all options available to the Council at that time; or (2) restating its intention to take these sites to the market at an appropriate time;

(c)        confirms that it does not wish to follow up at this time the unsolicited offer received and, if  recommendation (b)(2) above is approved, to instruct the Director of Enterprise, Planning and Infrastructure to (1) finalise an agreement with the Council tenant, (2) develop a marketing strategy,
(3) develop a tender evaluation strategy, (4) develop a joint working agreement with Robert Gordon’s College, (5) report with regard to recommendations (c)(1), (2), (3) and (4) to Committee within the next three Committee cycles for its consideration and approval, and (6) provide market growth information in spring 2011 plus recommendations for marketing these sites for Committee consideration;  and further recommends that if recommendations (c)(1) – (6) inclusive are accepted, the Committee approve the principles of the approach to calculating the split of any future capital receipts outlined in appendix 2 regarding the allocation of capital receipts and the future reversion of part of the tenant’s share to the Council with the passage of time to be recalculated on the date of each capital receipt.

CouncillorFarquharson moved at this point that the Committee agree the option (b)(2) and restate its intention to take the sites at Pinewood and Hazledene to the market at an appropriate time but, in going with that option, instructs the Director of Environment, Planning and Infrastructure to delay his report back to Committee in terms of recommendation (c)(5) until the option agreement between the Council’s tenants and Carlton Rock Limited has expired.  Councillor Farquharson did not, however, attract a seconder for his motion, which therefore fell.

The Committee resolved:-

to adopt the option identified under recommendation (b)(2) and restate the Council’s intention to take the development sites at Pinewood and Hazledene to the market at an appropriate time and, on that basis, to approve all the other report recommendations.

- COUNCILLOR KEVIN STEWART, Convener.