Agenda item

FORMER SHANNOCKS HOTEL SITE, SHERINGHAM

Summary:

 

 

 

 

 

 

 

 

 

 

 

 

Options considered:

This report informs Cabinet that following demolition of the former Shannocks Hotel in Spring 2021, works on the site have stalled and not progressed further as proposed within the agreement made between the Council and the site owner, Huddies Limited.

 

Given the prominence of the site on Sheringham Seafront and public interest in the site’s re-development it is recommended that the District Council now seeks to implement the Compulsory Purchase Order as previously agreed in respect of the development site so as to bring about its future redevelopment.

 

1.            Pursue the CPO process by serving a General Vesting Document to take ownership of the site as the owner has failed to commence works to provide a new building on the site before 23 November 2022.

 

2.            Demur from enforcing the terms of the CPO on commencement trigger (23 November 2022), deferring action until a subsequently agreed deadline, leaving the owner to continue with its own development plans to complete on agreed deadline. The risk being that without pressure from the Council, these works will not be progressed at all. This may result in the site remaining empty and blighting the Sheringham Conservation Area.

 

3.            Demur from enforcing the terms of the CPO in its totality, leaving the owner to continue with its own development plans at its own pace, with the risk that without pressure from the Council, these will not be progressed at all. This may result in the site remaining empty and blighting the Sheringham Conservation Area and reputational harm to the Council in not following through with any action.

 

Conclusions:

 

The owner has completed phase 1 of the agreed works by demolishing the former Shannocks Hotel building by June 2021. Beyond this, notwithstanding consistent pressure on the owner by the Council for a number of months, redevelopment of the Shannocks site remains stalled. The owners have stated that they are making their best efforts to start re-development of the site. However, progress has historically been either at a slow pace or non-existent. The owner has repeatedly asked to extend the agreed project start dates, whilst providing no practical evidence of being ready to commence redevelopment.

 

The Compulsory Purchase Order obtained by the Council is in place and supported by a completed agreement with the owners, which sets out a timetable for their re-development of the site to proceed. Having completed demolition of the long-term vacant building by June 2021 the next key date by which redevelopment works should have commenced was the 23rd November 2022, with the agreement stating that the project should be completed by June 2023.

 

The November 2022 date has now passed with no works to commence re-development of the site being started.  Officers remain concerned that the owner will not develop the Shannocks site in accordance with the timetable outlined in the agreement, and are mindful of public concern over the continual delays in the progression of this high profile scheme at the centre of Sheringham seafront.

 

The actions of the Council in seeking a Compulsory Purchase Order for the Shannocks Hotel were agreed by Cabinet as a means of committing the owner to projected deadlines. A line was drawn by the Cabinet decision in 2019 when supporting the CPO. The Council engaged in this formal process to ensure development of the site would be completed to a known deadline. Although the former hotel building has been demolished, no further works to redevelop the site has commenced over the past 18 months such that it is felt that the Council now needs to implement the CPO process to acquire the site to secure its redevelopment. 

 

Recommendations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Reasons for

Recommendations:

 

 

Cabinet is recommended:-

 

1. to confirm support for the serving of the General Vesting Document to take ownership of the site as soon as possible

 

2. Recommend to Full Council that it approves the addition of a capital budget of the valuation cost as set out at section 6 of the confidential appended report, and an additional £10,000 to cover the costs associated with the purchase of the property to be financed by the use of capital receipts, use of reserves and borrowing if required.

 

To secure timely redevelopment of the site, in accordance with the previously agreed Compulsory Purchase Order process, and the decision of the public inquiry to confirm the Order.

 

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

 

Valuation report October 2022

 

 

               

Cabinet Member(s)

 

Ward(s) affected

Sheringham North

Contact Officer, telephone number and email:

Phillip Rowson, 01263 516135

 

 

Decision:

Decision

RESOLVED

 

1. To confirm support for the serving of the General Vesting Document to take ownership of the site as soon as possible

 

2. To recommend to Full Council that it approves the addition of a capital budget of the valuation cost as set out at section 6 of the confidential appended report, and an additional £10,000 to cover the costs associated with the purchase of the property to be financed by the use of capital receipts, use of reserves and borrowing if required.

 

Reason for the decision:

 

To secure timely redevelopment of the site, in accordance with the previously agreed Compulsory Purchase Order process, and the decision of the public inquiry to confirm the Order.

Minutes:

The Assistant Director for Planning introduced this item. He said there was a small error at section 2.3 of the report. It should state £10,000 not £50,000.

 

He went on to explain that this was a long-standing matter and the Compulsory Purchase Order (CPO) had been granted some time ago. The building had been demolished in June 2021 and no further work had been commenced to take forward the development of the approved new building. Work should have started by June 2022, with an extended date of 23rd November 2022. This date had now passed and with increasing public concern about the lack of progress made, it was felt that it was an appropriate time for the Council to consider whether it should exercise the CPO by serving the General Vesting Document on the site owner as soon as possible. He informed members that the deadline for completion of the new development was June 2023. It was therefore proposed that the Council proceeded with the CPO and took control of the site.

 

Cllr A Brown, Portfolio Holder for Planning and Enforcement, said that it was a myth that the CPO process was straightforward. It was extremely complex. He explained that this had begun in 2014 and if no action was taken by the Council now, it would run until 2024, when the CPO expired. That essentially meant Sheringham had been subjected to 10 years of blight on a prominent site on the seafront. It was time to take decisive action as it was clear that very little was being done by the owner to progress the development of the site.

 

Cllr E Withington, Local member for Sheringham, thanked officers for all their hard work. She said that the community was very appreciative, adding that the owner of the adjacent building was becoming increasingly concerned that no action was being taken.

 

Cllr R Kershaw commented that it was incumbent on the Council to act decisively and serve documents on the owner. It was a prime site in the town and could not be left any longer.

 

Cllr N Dixon said that he recognised the need for the Council to support and deliver effective planning enforcement, however, he was concerned that any action taken could commit the Council to delivering the CPO and regenerating the site too. He asked whether the costs and risks had been robustly and reliably addressed in the Savills report (included in the exempt appendix)

 

The Assistant Director for Planning replied that Savills had provided an updated report to support this process in terms of the General Vesting Document. The process in terms of the Council becoming a developer was not confirmed at this stage. It was intended that the Council would take ownership of the site and then work with property experts to move the matter forward. It was possible that a further report would come to Cabinet, looking at a back to back project, limiting the risk, by using a partner as a developer for the site. The risk regarding the CPO was limited because there was a live, extant planning permission, for the redevelopment of the site for a mixed-use residential and commercial development.

 

Cllr Dixon said that he was reassured to some extent but said that he would prefer a precautionary approach was taken so that the Council did not find that costs were rapidly increasing and were faced with having to take hard decisions in the future as to how the project was delivered. He added that he appreciated that the Council had done what it could to mitigate any issues. He was just concerned that it could sit with NNDC to see the project right through to the end. Members had not seen a CPO being delivered before, so a cautious approach was understandable. The Assistant Director for Planning confirmed that it was very rare for a CPO to run its full term.

Cllr C Cushing sought clarification as to whether the figure would be disclosed to Full Council, as well as the estimated costs if the Council was to take control of the site, as it was potentially a major financial risk to the Council.

 

The Assistant Director for Planning replied that the unknowns were so significant and complex that it would be very difficult to provide an immediate oversight report. It was likely to be a report to cabinet at a later stage setting out opinions of property experts which would highlight all of the options and any associated risks.

 

Cllr J Toye commented that there would be risks to any venture of this scale. However, there was also the need to consider the risk of not taking any action. Proceeding with the CPO would send very strong signal.

 

Cllr J Rest said that it was important that projects were supported by details and all the options must be set out clearly. Decision making must open and risk averse and members must fully understand what they were being asked to do.

 

It was proposed by Cllr A Brown, seconded by Cllr R Kershaw and

 

RESOLVED

 

1. To confirm support for the serving of the General Vesting Document to take ownership of the site as soon as possible

 

2. To recommend to Full Council that it approves the addition of a capital budget of the valuation cost as set out at section 6 of the confidential appended report, and an additional £10,000 to cover the costs associated with the purchase of the property to be financed by the use of capital receipts, use of reserves and borrowing if required.

 

Reason for the decision:

 

To secure timely redevelopment of the site, in accordance with the previously agreed Compulsory Purchase Order process, and the decision of the public inquiry to confirm the Order.

Supporting documents: