Agenda Item 14 REPORT TO CABINET

Agenda Item 14 REPORT TO CABINET 15 November 2017 Subject: Presenting Cabinet Member: Director: Contribution towards Vision 2030: Regeneration opportunity - Junction Two Councillor Paul Moore - Cabinet Member for Regeneration and Economic Investment Executive Director - Neighbourhoods Dr Alison Knight Key Decision: Forward Plan (28 day notice) Reference: Cabinet Member Approval and Date: Director Approval: Reason for Urgency: Exempt Information Ref: Yes SMBC10/10/2017 Cabinet Member for Regeneration and Economic Investment - Councillor Paul Moore Executive Director Neighbourhoods Dr Alison Knight - Urgency provisions do not apply There is no exempt information contained in the report Ward Councillor (s) Consulted (if applicable): Scrutiny Consultation Considered? Contact Officer(s): Economy, Skills, Transport and Environment Scrutiny Board Date of Consultation: 14/09/2017 Group Manager Property Development Peter_yeomans@sandwell.gov.uk Legal Manager Commercial Team Mark_bodley@sandwell.gov.uk 1

DECISION RECOMMENDATIONS That Cabinet: authorises the Director Monitoring Officer to vary the existing option agreement with Jeremy George Knight-Adams in respect to development of Lion Farm playing fields, off Newbury Lane, Oldbury on terms and conditions to be agreed by the Executive Director Neighbourhoods to include, amongst other, the following:- responsibility for both the Council and the developer to undertake local consultation with residents and stakeholders regarding the proposals; the developer to re-provide/improve the current playing pitches to ensure a much better offer for local residents is available as part of the refreshed Playing Pitch Strategy; the developer to prepare a detailed case for a development of this nature which is currently not part of the adopted local plan. This case would highlight the economic impact locally and show the differentiated nature of the offer from local centres such as West Bromwich the developer to submit a full application for planning permission by a date to be mutually agreed; to the site being developed as a premier retail/leisure development that would attract high-end outlets. responsibility for the Council and the developer to be undertaken with the Black Country LEP/highways and transport authorities team/statutory bodies to ensure access points and traffic flows can be managed. 1 PURPOSE OF THE REPORT 1.1 The purpose of this report is to seek authority to vary the existing option agreement with Jeremy George Knight-Adams in respect of a proposed premium designer outlet centre and complementary uses at Lion Farm playing fields, off Newbury Lane, Oldbury, by extending the option period and altering other terms to ensure a viable scheme is brought forward. 2

1.2 The proposal is to deliver a premium designer outlet centre that will bring forward significant economic, environmental and social benefits to the Borough and the region. The nature of such development is such that it requires a site of this scale in a highly accessible location in order to fulfil its role as a regional attraction. A site of this nature and scale is not readily available adjacent to or in close proximity to the existing defined centres in Sandwell. 2 IMPLICATION FOR THE COUNCIL S AMBITION 2.1 The proposals in this report contribute to achieving the council s ambitions as follows: Ambition 3 - by creating a significant number of new jobs. Improvement in job prospects improves the local economy as well as the wealth and health of the workers and residents of the borough. Ambition 8 - by creating and enhancing facilities for residents by developing a retail centre with potential to include leisure and entertainment facilities. Ambition 9 by making Sandwell a place where investors see opportunities to invest and grow their businesses. Ambition 10 by improving facilities and working towards the redevelopment of underused sites. 3 BACKGROUND AND MAIN CONSIDERATIONS 3.1 Following approval of the Asset Management Land Disposal Committee at its meeting on 19 December 2012, the council entered into an option agreement with Jeremy George Knight-Adams (JKA) of Hampton Properties in respect of the proposed development of Lion Farm Playing Fields, off Newbury Lane, Oldbury (Minute No 74/12) refers. 3.2 The option was originally agreed as it is estimated that a development of this nature has the potential to achieve investment of up to 200m and should result in bringing 2,000 local jobs into the area. 3.3 The delivery of a scheme of this complexity and size requires a significant amount of expenditure and effort on the part of a potential developer. The existing agreement dated 21 May 2013 gave JKA a period during which the necessary steps could be undertaken and (once the preparatory steps had been taken) provided for a further option agreement to be granted. 3

Significant progress has been made and JKA has already incurred significant expenditure in securing adjoining land to develop the scheme based on the existing agreement including acquiring interests in land. 3.4 There are, however, still a number of issues to be overcome before any potential development could be considered. These include, amongst other things, securing planning permission, the agreement of statutory bodies, the removal of legal impediments and the upgrade of the highway network. 3.5 The highways capacity of Birchley Island will need to be considered in the context of the proposed Birchley Island hamburger scheme and this will be done though additional modelling of the highways capacity. This may identify additional mitigation measures. 3.6 The extension of the option period will also ensure that proposals are developed that reflect Sandwell s Playing Pitch Strategy. The current strategy which was approved at the meeting of Cabinet on 16 September 2015 (decision no. 156/15), highlighted that Lion Farm pitches were poor quality, prone to water logging, had poor changing facilities and that the toilets were kept locked due to vandalism. Options for the re-provision of these pitches will be addressed through the preparation of a planning application for the proposal and re-provision/improvements will be required as a condition of taking the scheme forward. 3.7 Sandwell Council is committed to providing quality sport and leisure facilities for Sandwell residents, having invested around 50 million into new facilities over the past eight years. This commitment will continue as these proposals are developed. 4 THE CURRENT POSITION 4.1 JKA has shown his commitment to developing the site and has already invested significant monies in undertaking numerous feasibility studies. To ensure the potential of the site is maximised, and to take advantage of the progress made to date, further time is required to overcome the various constraints and make progress with these issues. 4.2 Other variations to the option agreement, would include: Local consultation with residents and stakeholders regarding the proposals; Re-provision/improvement of the current playing pitches to ensure a much better offer for local residents is available as part of the refreshed Playing Pitch Strategy; The preparation of a detailed case for a development of this nature which is currently not part of the adopted local plan. This case would 4

highlight the economic impact locally and show the differentiated nature of the offer from local centres such as West Bromwich Application for planning permission to be in place by autumn 2018. Agreement that the site would be classed as a premier retail/leisure development and would attract high-end outlets. Work to be undertaken with the Black Country LEP/highways and transport authorities team/statutory bodies to ensure access points and traffic flows can be managed. 5 CONSULTATION (CUSTOMERS & OTHER STAKEHOLDERS) 5.1 Engagement and consultation with the public, stakeholders and other interested parties would form part of the usual process should a planning application be submitted. 5.2 Consultation would be required with the local community, statutory bodies and neighbouring local authorities. 5.3 The council would be required to carry out consultation regarding the relocation of playing fields/greenspace. 5.4 The developer would also be required to carry out consultation with the local community before submitting any planning application. 6 ALTERNATIVE OPTIONS 6.1 The council could retain the playing pitches. Whilst this may support the provision of football pitches in Sandwell, it is recognised that the pitches and changing facilities in question are of a poor quality. Bringing the pitch and changing facilities provision up to a good standard would require significant investment. 6.2 The council could dispose of the land for residential development and/or commercial development, however, this alternative would not deliver the step change that is required from a development opportunity that could bring significantly improved sports facilities within Sandwell, more than 2,000 jobs, leisure facilities and c 200m extra investment into the area. 5

7 STRATEGIC RESOURCE IMPLICATIONS 7.1 There are no specific strategic resource implications associated with the proposal to extend the existing option agreement. 7.2 Future development of the site would, however, potentially have significant social and economic benefits for the borough and this will be outlined in full in future reports regarding the matter. 8 LEGAL AND GOVERNANCE CONSIDERATIONS 8.1 An option agreement is a legally binding agreement entered into between two parties which gives the one party the right, but not an obligation, to purchase the other party s asset at an agreed price in the future. 8.2 Local authorities have the freedom to dispose of land subject to the Provisions of S123 and s127 of the Local Government Act. 8.3 Under s123 of the Local Government Act 1972, the council can dispose of any land provided it is for the best consideration that can be reasonably obtained. There is no proposal to dispose of the site for less than best consideration. 8.4 It would also be necessary to consider public procurement regulations in circumstances where there is a development agreement or the grant of a lease associated with the disposal of land where the value of the arrangement is above the relevant EU threshold. 8.5 If the council disposes of land at an undervalue, this may constitute state aid even where the consent of the Secretary of State has been obtained unless the requirement of the European Commission s sale of land guidelines are met (97/C 209/03). 8.6 There are several title issues that would need to be resolved during the extended period, as highlighted above, and the appropriate resolutions would be met through legal due diligence carried out during the extended period. 8.7 As part of the planning application process a number of bodies would be consulted. 8.8 There are no other legal implications identified at this point relating to the proposal to vary the option agreement. 6

8.9 The proposal will need to address the policies within the adopted development plan and as the council is the landowner any recommendation of planning committee would need to be referred to full council for decision. In addition, the application would have to be referred to the Department for Communities and Local Government since it is proposed to be implemented on land which is edge of centre, out of centre, is not in accordance with the development plan and has a floor area/building is 5,000sqm or more. The Secretary of State then has 21 days to decide whether he wishes to call the application in for determination. If the application is called in this would then be dealt with by a public inquiry. 9 EQUALITY IMPACT ASSESSMENT 9.1 Within the development proposal great care and attention would be taken to ensure that the development complies with the Equality Act 2010. This would ensure that there is no discrimination against any disadvantaged or vulnerable members of the community. 10 DATA PROTECTION IMPACT ASSESSMENT 10.1 There are no specific data protection issues to consider at this point in time. All data relating to the matter is maintained in accordance with the Data Protection measures previously implemented by the council. 11 CRIME AND DISORDER AND RISK ASSESSMENT 11.1 As part of any planning application for development of the site, JKA would be required to ensure that the design proposals accord with current design guidelines. This would ensure that where possible opportunities for crime and disorder would be minimised through well-designed layouts and materials of construction. 12 SUSTAINABILITY OF PROPOSALS 12.1 The design and layout of the development would accord with the current sustainability guidelines. This would ensure, where appropriate, grey water recycling and sustainable drainage proposals to ensure that rainfall is managed as it disperses into the water course. 7

12.2 HEALTH AND WELLBEING IMPLICATIONS (INCLUDING SOCIAL VALUE) 12.3 The development of this site would bring a substantial number of visitors and increase expenditure within the borough. The increased economic activity would - in part through the new employment opportunities - lead to greater wellbeing within the community. 12.4 There would be a requirement to re-provide the sports facilities should the development go ahead. This would lead to sustainable, high quality playing pitches replacing ones which are poor quality. This would benefit Sandwell residents health and wellbeing by giving them greater opportunities to participate in physical activity and sport. 13 IMPACT ON ANY COUNCIL MANAGED PROPERTY OR LAND 13.1 When this development comes forward, ownership of the land would transfer from the council to the developer either by sale of the freehold or long leasehold. This would reduce the maintenance costs for the council on the playing fields and generate a significant capital receipt. 13.2 This report is in-line with the council s asset management strategy to generate a more efficient and effective asset portfolio by disposing of underutilised and/or uneconomic assets. 14 CONCLUSIONS AND SUMMARY OF REASONS FOR THE RECOMMENDATIONS 14.1 It is recommended that cabinet authorises the Director Monitoring Officer to enter into a supplemental agreement, to vary the terms of the existing option agreement with Jeremy George Knight Adams in respect of development of Lion Farm Playing fields. 14.2 Once the development proposal has progressed, planning permission has been considered and the judicial review period expired, a further report would be brought back to cabinet for consideration. 8

15 BACKGROUND PAPERS 16 APPENDICES: None Asset management and Land Disposal Cabinet Committee 19 December2012. Dr Alison Knight Executive Director Neighbourhoods 9