Agenda item

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:

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.

Valuation report October 2022

Cabinet Member(s)

Ward(s) affected

Sheringham North