Newcastle-under-Lyme Borough Council Development Partner Project

Description

Newcastle-under-Lyme Borough Council (the “Council”), as with the Local Government sector at large, is facing significant financial pressures and is seeking ways to take a pro-active commercial approach to both address its financial position and to maximise the value from a variety of surplus, or underutilised assets that make up its portfolio. The Council has a significant portfolio to sites that it wishes to utilise to both support regeneration and deliver financial return. It is therefore looking to establish a new Joint Venture (JV) partnership that will have access to a number of these underutilised assets to deliver development schemes. Three such key sites are: > York Place; > Parkhouse Road West.; and > Midway Car Park Lot 1: Newcastle-under-Lyme Borough Council (the “Council”), as with the Local Government sector at large, is facing significant financial pressures and is seeking ways to take a pro-active commercial approach to both address its financial position and to maximise the value from a variety of surplus, or underutilised assets that make up its portfolio. The Council has a significant portfolio to sites that it wishes to utilise to both support regeneration and deliver financial return. It is therefore looking to establish a new Joint Venture (JV) partnership that will have access to a number of these underutilised assets to deliver development schemes. Three such key sites are: > York Place; > Parkhouse Road West; and > Midway Car Park These are planned to be the “Initial (Category A) Sites” that will be taken forward by the partnership, but a number of others have been identified and can come forward subject to the partnership successfully taking forward these initial sites. These are known as the “Additional Council Owned (Category B) Sites”. A number of others have been identified and can come forward subject to the partnership successfully taking forward these initial sites. These include sites such as Rycroft 'Middle Site', the existing Civic office site and other operational sites that are likely to become surplus. It should be noted that a number of these sites are likely to be residential led developments, and therefore bidders will need demonstrate their expertise in delivering residential schemes. The Council believes that there is latent value in these Sites and has undertaken significant work with its advisors as part of the FHSF to understand both the potential that is locked up within them and the potential approaches it could use to maximise return from them. The traditional route the Council has followed has been to dispose of these assets for a capital receipt. However, there is a consensus of opinion within the Council that there are realistic business opportunities to add wider value to the disposal process with the aim of creating commercial agility with an outcome of improving the pace of delivery, impact of these sites on economic growth and financial receipts, for example by partnering with an appropriate organisation that has development and funding expertise so that the Council can secure enhanced benefits and financial returns including potentially sustainable long term income streams. The value of a partnering process can be increased further by being brought in at the earliest stages through creating, then promoting new opportunities in sharing the market and delivery expertise with access to emerging land information. The Council is seeking a development, investment and optimisation programme for its sites that supports housing and economic growth across the borough.