Combined Executive Agenda 120410.pdf - North Ayrshire Council

2.2 In 2011, Cunninghame Housing Association commissioned a
valuation of the land which forms the extent of Vineburgh Phase 3
(location plan included as Appendix 1). A gross affordable value of
£1,065,0000 was established. This assumed demolition costs of
£200,000, resulting in a net value (sale value) of £865,000.
2.3 In January 2012, the Council instructed the District Valuer to identify
the current affordable value of the land. On this occasion a gross
valuation of £990,000 was identified. Demolition costs of £200,000
were again assumed, giving a net value of £790,000.
2.4 Cunninghame Housing Association have since tendered the
demolition exercise and actual demolition costs of £124,873 have
been established. Based on the most recent valuation, this adjusts
the net value of the site to £865,127 (ie. £990,000-£124,873).
2.5 The Council's recent valuation is a reduction £75,000 from
Cunninghame Housing Association's valuation. The reduction can be
attributed to the inclusion of 10 shared equity units in Phase 3 of the
Vineburgh project; this tenure type realises a lesser per unit land value
than social rented housing.
2.6 The Council is required to seek Scottish Government approval for the
disposal of any land which is held on the Housing Revenue Account.
The Council's Legal Services will ensure this is obtained before the
sale of land proceeds.
2.7 Following Executive approval, Legal Services will approach the
Government for their approval to dispose of the land in question to
Cunninghame Housing Association for £865,127. Within the terms of
sale there will be a clawback clause which will ensure that for every
unit of shared equity housing not delivered (under the proposed figure
of 10 units), the Council will be paid an additional £7,500.
Extra-Ordinary Development Costs
2.8 Negotiations have been held with Cunninghame Housing Association,
and a maximum (capped) level of extra-ordinary development costs
for which the Council will accept a claim from CHA for recompense in
relation to the development of the site proposed as follows:
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