Agenda item

To provide the Finance and Economic Overview and Scrutiny Committee with an update regarding the St Martin’s Park re-development project in Stamford.

The Leader of the Council presented the report that provided the Committee with an update on the re-development project at St Martin’s Park, Stamford.

The Council had made a request to the Government for a Brownfield Land Release Fund application for a sum of £2.8m.

A report would be brought to a future Full Council meeting to ask for delegated authority to accept the funding, if made available.

It was queried as to how critical the possible funding could be to the Council and what level of risk this may have if the funding was not awarded.

The Leader of the Council clarified that the development may still go ahead in the future, regardless of whether the Council receives revenue for the entire project or not.

The Deputy Chief Executive reminded the Committee that at a recent Full Council meeting, the application for the Brownfield Land Release Fund application was one of the mitigations to offset the overall projected deficit on the project.

Concerns were raised on the monthly electricity standing charge and around the disconnection and reconnection of the site. It was queried what the disconnection and reconnection costs would be.

If the site was disconnected from the grid by the Council, a risk of another site utilising the capacity could occur meaning when the developers asked for reconnection that there was not enough capacity and costs higher. It was noted that building a sub-station was very high in cost. The exact cost of a disconnection/reconnection were unknown. 

The Head of Corporate Projects, Policy and Performance confirmed that the Council were retaining the Cummins side of the site which would generate enough electricity for half of the future development. If this was disconnected, the site would be classed as unserviced and costs to the Council could be higher at the point of selling the site. 

It was confirmed that all options previously discussed were still relevant, however, some of the Council’s assets that could be sold, hadn’t yet been sold. The report outlined updated on the points that Full Council had agreed to consider.

It was clarified that all legal issues outlined within the report had been resolved.

One Member questioned whether the site contamination had been resolved and if the contractors were fulfilling their contract.

The Head of Corporate Projects, Policy and Performance highlighted that two of the three stockpiles were in the process of being removed as they were certified clean. Legal discussions were taking place with the contractor around the other stockpile that was not certified and needed to be removed, as part of their contract.

It was further queried whether there were any penalties as part of the contract, if the works were not carried out.

If the works were not carried out, the Council would have to take a form of judication route with external parties.

One Member queried when the forecast start date of works would begin to take place on the development.

It was noted that before development can commence, reserved matters applications would need to be considered by the Local Planning Authority.

A condition of the sale of the site was the removal of all three stock piles, power lines diversions and gas pipe removal.

One Member queried whether a possible buyer of the site had been found to purchase it.

The Leader of the Council confirmed that the site was split into two halves (half owned by Burghley and half owned by the Council). The Council had received interest from potential buyers of the land, which would be subject to conditions being met.

Members requested the worst- and best-case scenarios for the project, in terms of profits or loss. 

All financial information had previously been considered by Full Council on the 29 February 2024.

It was queried whether the employment land was still within the development.

It was confirmed that the outline consented scheme was for employment land, retirement village and residential homes.

That the Committee:

Notes the progress made regarding the delivery of the St Martin’s Park re-development project in Stamford.