Councillor Eamonn O’Brien, Leader and Cabinet Member for Strategic Growth and Skills, provided Members of the Cabinet with an update on the proposals for the East Lancashire Paper Mill
The Leader reported that the Council has been working in
partnership with Homes England since 2016, the Council has now entered in to a Collaboration Agreement with Homes England which will see Bury’s land transferred to Homes England for onward lease with Morris Homes.
This report provides an update to the March 2022 Cabinet Paper ‘East
Lancashire Paper Site Update’ and sets out changes in the original offer
approved by Cabinet, resulting from a change in market conditions and viability appraisals.
Members discussed the proposals and the following comments and issues were raised:
· The Leader reported the decision to change the proposal would ensure that the Council receives a greater subsidy.
· It is proposed that the site will have a mix range tenure but this is to be determined. Proposals to be considered at the Planning Committee in December 2022.
1. Agrees to the revised land value offer received by the Council and Homes
England in October 2022, which will result in a reduced capital receipt from
Morris Homes (North) Ltd based on a deferred payment basis.
2. Notes the delivery of 25% Affordable homes provision will now be undertaken via a standard S.106 agreement.
3. Notes the extensive partnership work with Homes England (as major land
owner) and Morris Homes that has enabled an ambitious delivery schedule to
be maintained which will result in housing, improved open space and
replacement cricket facilities.
4. Delegate the finalised terms of the land sale agreement to the Executive
Director of Place in consultation with the Cabinet Member for Finance, S151
Officer and Monitoring Officer.
Reasons for the decision:
To ensure that Cabinet are kept fully informed on progress regarding the delivery of the East Lancashire Paper Mill site working in collaboration with Homes England and Morris Homes as the preferred bidder.
To ensure Cabinet are aware that the previous Section 73 application made on viability grounds has been withdrawn on the basis that the scheme is deemed viable without the need for Homes England funding.
In light of the above, to ensure approval is in place for agreeing a revised land
value offer and Cabinet are appraised of the capital receipt which continues to
offer the Council the most attractive financial proposition.
Other options considered and rejected:
The other option considered and rejected is set out in the Part B report.