The site, which also includes an additional area of land currently occupied by garaging, is “both financially valuable and strategically important, lying in a largely residential area within the city walls”.
The site was put on the open market after the original proposal by York CVS to run a Social Care Hub from Oliver House did not have a sufficiently robust business case.
A total of 27 bids were received for the site from 23 bidders.
Each bid was then assessed, with points awarded for the capital value of the bid (60%); the ‘value’ of the bid to the local community (20%) and the deliverability of the scheme (20%).
The bid from McCarthy & Stone – to demolish the existing building and build 30 retirement apartments on the site -was the clear ‘winner’ scoring 87 points with a gross capital value of £3.324m before planning commitments are considered (commonly known as S106 payments). The bid would help meet York’s need for dedicated city centre housing for older people, supporting the council’s aim to enable older people to remain independent in their own homes as long as possible.
Creating homes for local older people would also free-up larger family homes for young families.
The capital receipt from the sale will be shared between the council’s General Fund and the Housing Revenue Account, with a proportion of the funding already earmarked to support the provision of new accommodation for older people in the city.
There were a range of other bids for different schemes with vastly different values, with the lowest value bid of £750,000 some £2.574m less than the highest bid. Acceptance of a bid for more that £2m less than market value would require permission from the Secretary of State to get approval.
The Executive will be asked to approve the McCarthy & Stone proposal as the preferred bid and if approved, the council will enter into detailed commercial negotiations.
Executive will take place on Thursday 25 June at West Offices from 5.30pm and is open to members of the public or is available to watch live online from: www.york.gov.uk/webcasts
To find out more about the report, or to attend, visit: http://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=8839