Decision details

Councillor Eamonn O’Brien, Leader and Cabinet Member for Strategic Growth and Skills, presented the report which sought approval for  the acquisition of the property interests within the Mill Gate Estate by the Council as part of the regeneration of Bury town centre.

Decision:

Cabinet:

1.    Approved the acquisition of the Manchester Diocese Board of Finance interests within the Mill Gate estate subject to approval of recommendation 2, the acquisition price being within the range set out in the Part B report and the advice set out in Appendix to the Part B report and subject to the carrying out of a formal red book valuation to provide assurance that the Council is achieving best value;

2.    Delegated to the Executive Director of Place authority to complete due diligence and final negotiations with the Diocese and to agree the final terms of the transaction in line with the professional valuation advice set out in the Part B report and subject to recommendation 3 below;

3.    Delegated final approval to the transaction to the Chief Executive following consultation with the Leader of the Council and Cabinet Member for Strategic Growth, the Monitoring Officer and the Section 151 Officer; and

4.    Instructed the Monitoring Officer to enter into and complete all necessary documents to give effect to the acquisition.

Reasons for the decision:

·         To assist in facilitating the wider aspirations of regeneration of Bury town centre by securing further control over the Mill Gate Estate. To facilitate redevelopment opportunities within the masterplan for the estate.

·         To avoid the diocese interest being acquired by an ‘income-investor’ who could potentially look to retain the income in the long term and provide a barrier to redevelopment. This would not be insurmountable but would delay the regeneration timescales and would certainly hold up proposals for redevelopment of the Mill Gate Estate.

·         To provide a further income stream to the Council by way of ground rent income payable under the interests to be acquired.

Other options considered and rejected:

Council to not act and leave the matter to market forces. This option was rejected as if the diocese interests were to be purchased by a third party, they may not be motivated to facilitate redevelopment and could become a barrier to redevelopment of the wider Mill Gate estate.