We
have received a number of questions from the public for the Council
meeting on 18 April 2013 that relate to the Royal Sands (Pleasurama)
development. Given the level of interest in this site at the meeting I
will be giving a statement of the current position, to give context to
the answers that will be given by the Cabinet members.
The statement is as follows:
The existing development agreement from 2009 is still in place, and is
supported by three long term (199 year) leases on the site. The
development agreement requires completion by 2014, with the potential to
extend to 2017. Under the current agreement the freehold for the
development would transfer on completion of the development with payment
for the site to the council being made as overage as each unit is sold
or leased.
In July 2012 Members were asked to give consideration as to whether they
would consider replacing the current development agreement with one
containing a number of changes, including the transfer of the freehold
in advance and the payment of all the overage in a lump sum at the same
time. Reflecting Member's concerns, these proposals contained a number
of measures to protect the council's interests. However, as the detail
of these changes was unable to be agreed to both parties' satisfaction
these changes are no longer being taken forward.
Discussions are still ongoing with the developer and we remain committed
to bringing this matter back to Cabinet in May, in line with the
Cabinet decision in January 2013. In the meantime, I can confirm that
the freehold will not be transferring to the developer until the
completion of the development, and that this position has not changed
since the development agreement was first signed.
Friday 19 April 2013
2 comments:
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I had been told the following: Dear Mr James,
ReplyDeleteThank you for your email, the contents of which are noted.
We will be undertaking a thorough due diligence exercise prior to any revision of the development agreement being signed, which will include reviewing the adequacy and certainty of the funding.
The Council holds the £1m bond in one of its accounts. The interest that is accruing is also held by us, and will be returned to the developer with the original £1m only when the hotel is completed to shell and core.
Regards,
Dr Sue McGonigal
Chief Executive and Chief Financial Officer
Thanet District Council
so as the freehold issue has been defered does that mean no revision no due diligence?
SO bored of your inane, inaccurate and laughabke pedantry James. A little knowledge is in danger of simply making you look more and more stupid.
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