Agenda item

Report of the Leader of the Council

The Assistant Director for Growth presented the Leader’s report on the Collaboration Agreement relating to Saint Martin’s Park, Stamford.  She referred to the Cabinet’s agreement at its meeting on 21 January 2020 to enter into a contractual Collaboration Agreement with Burghley Land Limited, as set out in the Heads of Terms, to bring forward the redevelopment of circa 35 acres of land for commercial, residential and retirement uses on a 50/50 shared development cost and profit basis. The matter was brought before the Companies Committee to scrutinise the decision.

The following matters were raised

·         Should the project be progressed through DeliverSK?

It was advised that DeliverSK was not yet an entity in its own right to deliver such a project. As Burghley was the largest landowner in the south of the district, as well as owning the land adjoining the site, they would bring local contacts and support and working with one of the largest stakeholders in the town would help to ensure the smooth delivery of the scheme.

·         The decision had been taken at Cabinet before consideration by this Committee

This was due to the need for the decision to be taken as early as possible to enable the scheme to progress. The decision of Cabinet was to agree the principles of the Collaboration Agreement with detailed future monitoring of the project plan through this Committee.

·         Concern at the collaboration with Burghley Land Limited and it was questioned whether the Council might be better to work alone on the project and not take in a partner

It was responded that the 50/50 joint enterprise would bring equal benefits for both parties and equal sharing of cost and risk, including the significant costs involved (such as masterplanning, construction and marketing). It was considered that a better scheme could be delivered by working collaboratively than working alone as Burghley brought more expertise in this area. 

It was also noted that the Council would see further returns from the development in the form of Council tax and business rates revenue once the homes and business units were occupied.

·         How the governance arrangements would work

It was advised that the heads of terms outlined how decisions would be made including how the site would be disposed of, details of the planning application and design brief and any financial contributions that were necessary.

·         The value and uncertainty of the property market

It was noted that the value of the site had remained static since the Council acquired it but also that there had been a recent upturn in the residential market in Stamford. The site was costing the Council approximately £20,000 per month and this was one of the reasons for the Council to move as quickly as possible to bring the site forward.

It was also noted that Burghley’s interest extended beyond their site boundary and that they were keen to protect the historic views of Burghley House and the surrounding area.

A Member felt that partnership with a potential objector of the development was not a reason to enter into such a working arrangement

·         The cost to clear the previous brownfield site

It was explained that trial pits had shown that the site was not in very bad condition and details of the cost and what was involved would be included in the business plan.

·         Whether the Council had looked at demand: specifically the division between commercial and residential elements of the site

It was explained that the Council was looking to recoup its value and the business plan would set out the proposed residential, retirement and commercial proposals on the joint sites. There was considered to be little demand for industrial space as the current business requirement in Stamford was for office, digital, and start-ups rather than traditional industrial development. It was also pointed out that the Council did not just want to buy and develop but to boost the economy and jobs in the town centre and this site would provide a balanced approach for residential, retirement and commercial development as well as providing sufficient car parking to support the site. Stamford was in need of business opportunities to create and retain jobs in the town.