Item 14 - Sale of Site at Burroughs Way, Vale of Leven Industrial Estate
West Dunbartonshire Council · 22 May 2024
Back to Infrastructure, Regeneration & Economic Development Committee — 22 May 2024 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer: Resources Infrastructure Regeneration and Economic Development Committee: 22 May 2024 ___________________________________________________________________ Subject: Sale of Site at Burroughs Way, Vale of Leven Industrial Estate, Dumbarton, G82 3PD 1. Purpose 1.1 The purpose of this report is to seek Committee approval for West Dunbartonshire Council (the Council) to dispose of the development site at Burroughs Way, Dumbarton (the Site) to Hargreaves Land Ltd. 2. Recommendations 2.1 It is recommended that the Committee: (i) Approves the disposal of the Site to Hargreaves Land Ltd for £500,000 plus VAT. (ii) Authorises the Chief Officer Resources to conclude negotiations. (iii) Authorises the Chief Officer Regulatory and Regeneration to conclude the transaction on such conditions as considered appropriate. 3. Background 3.1 This Site has been the subject of previous Committee Reports in February and August 2022 unfortunately neither transactions progressed due to a variety of reasons. 3.2 The site was remarketed in February 2024 resulting in two proposals being received. 4. Main Issues 4.1 The Site is wholly owned by the Council and is currently unused and surplus to the requirements of any Council service. 4.2 The site was extensively marketed For Sale during February and March 2024 Marketing details were prepared (Appendix 1). 4.3 The availability of the site was listed on the Council’s website and social media and listed on the main commercial property marketing websites. Details were also circulated to commercial property agents, local solicitors, and business development bodies. ITEM 14
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4.4 A closing date was set for receipt of informal offers on 10 April 2024. Two offers were received with the proposal from Hargreaves Land Ltd being considered to be the most attractive following an officer assessment. 4.5 The offer from Hargreaves Land is for a disposal price of £500,000 plus VAT. The deal will be structured such that the Purchaser will enter into suspensive missives at which stage a deposit of £25,000 plus VAT will be paid with a further £15,000 plus VAT being paid on conclusion of missives. 4.6 The missives will be conditional on the Purchaser obtaining planning consent for their intended development and securing pre-lettings or pre-sales on 75% of the intended development. The intended use of the Site is the development of light industrial and storage units. This is in line with the designated Planning use for the site in the Local Plan. 4.7 The Purchaser will have a period of 3 years from the conclusion of missives to satisfy the conditions . This will be extendable by 6 months if required on payment of a further £10,000 plus VAT. 5. People Implications 5.1 There are no significant people implications other than the resources required by legal services and asset management to negotiate missives and conclude the transaction. 6. Financial and Procurement Implications 6.1 The Council will benefit from a capital receipt of £500,000. 6.2 There are no procurement implications arising from this report. 7. Risk Analysis 7.1 The disposal is subject to legal due diligence. There is a risk of the sale not proceeding due to any emerging issues during the due diligence process. The sale is conditional on planning and pre-lettings / sales which cannot be guaranteed and will be dependent on economic and other conditions at the time. 8. Environmental Sustainability 8.1 The development of the Site will require to be in line with current building and environmental standards. 9. Equalities Impact Assessment (EIA) 9.1 An Equality Impact Assessment is not applicable for the purpose of this report.
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10. Consultation 10.1 Consultations have been undertaken with Regulatory Services and Planning. 11. Strategic Assessment 11.1 By agreeing to this proposal this will be contributing to the Council’s strategic priority for the development of land zoned for industrial use which will generate revenue for the Council in the form of local business rates. It will also see an undeveloped and vacant area of land developed for uses which will retain and create job opportunities. Laurence Slavin Chief Officer: Resources Date: 25 April 2024 Person to Contact: Michelle Lynn, Asset Coordinator. Email: michelle.lynn@west-dunbarton.gov.uk J David Johnston, Estates Surveyor. Email: david.johnston2@west-dunbarton.gov.uk Appendices: Appendix 1 – Marketing Details. Background Papers: None Wards Affected: Wards 2