BOROUGH Council chiefs at Warrington will be recommended next week to approve in principle the purchase of an unnamed property for about 20 per cent above market value.
It would mean the authority borrowing money for a proposal that will not immediately generate a commercial or financial benefit, councillors will be told.
The property is not identified in a report to be considered during the open section of a cabinet meeting next Monday, but it is said to be in the Southern Gateway regeneration area – a new urban quarter comprising townhouses and traditional terraced streets linking Stockton Heath to the “city centre” along Wilderspool Causeway.
Cabinet members will be told in the report to be presented by deputy leader of the council Cathy Mitchell: “Southern Gateway is intended to be delivered on two sites north and south of the river and the strategic ambition is to deliver over 1,300 new homes on brownfield sites.”
The ambition is to make a new residential community alongside Wilderspool Causeway to Loushers Lane.
Acquiring the property would be the first stage of a long term development of housing.
The council will need to borrow to purchase the property, it is proposing to pay approximately 20 per cent over market value for the site and the proposal will not generate a commercial or financial benefit to the authority.
But there are medium to long term regeneration benefits to be discussed during a closed section of the meeting.
The report says there are three main risks to the proposal – the risk in purchasing the site, the risk in operating the site as an operational asset and the risk in redeveloping the site for housing in the future.
These risks are assessed individually in a separate report to be considered in the closed section of the meeting.
Reasons for recommending the proposal are:
1. To bring another Warrington property into council ownership for future regeneration.
2. To enhance the council’s position as a major landowner with the ability to influence the future development of the town.
3. For the council to be seen as acting proactively and taking leadership, investing in the town to promote economic development.
The recommendation is based on satisfactory outcomes to surveys, valuation, financial and legal due diligence.
Cllr Cathy Mitchell
Council set to pay 20 per cent over market value for housing site
44 Comments
4 Comments
Why not compulsory purchase the site ,or is someone in the council due for a handout.
Warrington is supposed to be the richest council in the country isn’t it?
Warrington has a very hefty debt, currently circa £1.5 billion and rising, in part brought about by property “investments.”
Warrington IS NOT a city but that is what this council are aiming for to make Warrington a city. a city like Manchester.
Why pay more? What’s wrong with paying the going rate? Has this property not come to market yet? And if it has and there’s no interest at market price, then it is overpriced. If it has hasn’t come to market, then it is Dodgy that some estate agent is giving inside info? If someone was selling their house, you would offer them asking price, or less first wouldnt you? ….paying 20 percent more smacks of Dodgy dealing? Especially if the site isn’t to be used for housing straight away..