Next week, a Salford City Council Property and Regeneration Briefing will decide whether to sell two pieces of land on Queen Street in Greengate exclusively to developer Renaker Build Limited (RBL).
The site is currently an unused warehouse and parking space, and the Council owns the freehold – but the leasehold is owned by a private pension fund which won't sell to the Council, according to the report to councillors.
"Terms have been agreed for the conditional sale of a long leasehold interest in the site to RBL, subject to RBL agreeing terms for the acquisition of the leasehold interests and with an option for the Council to repurchase the site should development not be brought forward within an agreed timescale" sates the report.
In other words, if Renaker can't persuade the pension fund to sell its interest in the land within six years, the Council will buy it back.
The value of the two pieces of land as of April 2018 was just £44,000 and £33,000 respectively, or £77,000 total, according to the report. Renaker plans to build 184 properties on the site. If the land would have sold on the open market it might have reached a figure much higher than this.
"A capital receipt payable to the Council on completion of the leasehold acquisitions has been similarly calculated on the basis of the marriage value released for the site, apportioned between freehold and leasehold interests" the report states "Market-facing cost and revenue assumptions have been used to assess the indicative development and as such, the sum payable for the Council's longleasehold interest on grant of Agreement for Lease is considered to represent Best Value."
Renaker is the developer behind No1 Greengate, Exchange Court and the Christ Church burial ground plot, and the Council report states that this latest deal will help secure the 'sustainable' future of the Grade II listed Collier Street Baths...
"The subject site, when combined with the future arrangement of Rolla Street, offers a unique opportunity to enhance and secure the sustainable future of the historic Baths building" it insists "This opportunity is exclusive only to the owners of the Baths. This proposed conditional sale to RBL will aim to provide additional flexibility towards the final use of Collier Street Baths, whilst bringing enhanced uses to Rolla Street. Disposing of the site to any other party would potentially restrict the development potential of the Baths and bring further question to achievable, sustainable solutions for the building.
"Agreeing the disposal at this time affords RBL the certainty necessary to develop the detail required into their planning application for the Baths solution as part of Phase 2 of their target phased delivery strategy" it adds "This in turn provides additional certainty to the Council around securing the future of this important building at the earliest opportunity."
The decision on the sale will be made next Monday 9th September.
Meanwhile, another developer, the Hong Kong-based One Heritage, also responsible for One Greengate, has announced a public consultation next Tuesday, 10th September, on its plans to build a 55 storey tower of apartments in Greengate.
The developer's architect, Nick Berry of OMI Architects, says: "We have worked closely with Salford City Council to create a building that not only ties in with Salford's aspirations for the area but will make a significant contribution to the skyline of this emerging quarter of the city..."
The consultation will take place on Tuesday, 10th September between 4pm and 8pm, at the Ground Floor Lecture Theatre, Arlington House, Bloom Street, M3 6AJ.
Main photo shows One Heritage scheme for Greengate
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