Part I ITEM NO. REPORT OF THE MANAGING DIRECTOR OF URBAN VISION PARTNERSHIP LIMITED JOINT REPORT TO THE LEAD MEMBER FOR PLANNING AND THE LEAD MEMBER FOR HOUSING ON 6th NOVEMBER 2006 TITLE : THE LANGWORTHY HOTEL TOGETHER WITH ADJOINING LAND, LANGWORTHY ROAD, SALFORD RECOMMENDATIONS : It is recommended that Lead Member:(i) approves the draft Development Brief, seeking expressions of interest, for the site (ii) authorises the Director of Customer and Support Services to complete the necessary legal formalities. EXECUTIVE SUMMARY : Salford City Council is seeking expressions of interest from developers to bring forward top quality concepts for a high quality scheme for the retention and redevelopment of the Langworthy Hotel, together with adjoining land. Additional land on Keswick Grove and Osborne Street may also be made available should proposals be received which envisage a comprehensive redevelopment of the wider area. A draft Development Brief has been produced and is annexed to this report for approval. BACKGROUND DOCUMENTS : N/A (Available for public inspection) ASSESSMENT OF RISK: Low SOURCE OF FUNDING: All costs to be recovered from Capital Receipts COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES (or his representative): c:\joan\specimen new report format.doc 1. LEGAL IMPLICATIONS Provided by : N/A 2. FINANCIAL IMPLICATIONS Provided by : N/A PROPERTY (if applicable): HUMAN RESOURCES (if applicable): CLIENT CONSULTED: Housing Team – Terry McBride HMR West CONTACT OFFICER : Angela Martens 0161-779-6077 WARD(S) TO WHICH REPORT RELATE(S): Seedley and Langworthy KEY COUNCIL POLICIES: Regeneration. DETAILS : Background: Built at the turn of the last century the hotel has served the wider area for many years. In 1985 Whitbread’s undertook a refurbishment scheme and the hotel operated as a public house from then until its sale in 1993. The property was then converted into hostel accommodation. Salford City Council acquired the property in 2000 on behalf of the Seedley and Langworthy Partnership. It occupies a prominent position in the commercial village centre on Langworthy Road but has stood vacant since its acquisition in 2000. The residential terraced properties to the rear of the hotel were identified for clearance following a Community Housing Study and in-depth community consultation undertaken by the City Council. The study found that the properties had suffered from severe market decline and as result the City Council resolved to acquire the properties and assemble the land for redevelopment. The Langworthy Hotel occupies a central location within the Seedley and Langworthy Renewal Area, declared in June 2000, within the City of Salford. This area has been a focus for regeneration and transformational funding since 2000 and has seen investment upwards of £50m to date. This investment has come from numerous bodies including Salford City Council, SRB, ERDF, NWDA, EP, HMRF and the Lottery. c:\joan\specimen new report format.doc Details: Salford City Council is seeking expressions of interest from innovative and creative developers to bring forward top quality concepts for a high quality scheme for the retention and redevelopment of the Langworthy Hotel, together with adjoining land shown edged red on the attached plan. Additional land on Keswick Grove and Osborne Street (shown edged blue) may be made available should proposals be received which envisage a comprehensive redevelopment of the wider area. The City Council own the majority of land within the area edged red and blue and intends to make a Compulsory Purchase Order to secure good legal title and possession to the remainder. Prospective purchasers are required to submit two proposals for the site: PROPOSAL 1 This must incorporate the privately owned shops, adjoining the Langworthy Hotel together with associated accessways (shown edged/ hatched green on the attached plan), within the development proposal. The City Council has no legal interest in these properties and it would be the responsibility of the developer to enter into discussions with individual owners direct to secure ownership. Financial offers must be on the assumed basis that the land is within the City Council’s ownership. Asking for proposals from prospective purchasers on this basis means that the Council will be able to compare proposals on a like for like basis. PROPOSAL 2 This must restrict the site area to that owned by the City Council (as shown edged red and blue on the attached plan). Submissions will be considered by a panel of interested parties including representatives from Salford City Council, Urban Vision, The Seedley and Langworthy Trust and the North West Development Agency. The Langworthy Hotel and a number of former residential properties contained within the site were acquired using NWDA/ SRB5 monies. Once a suitable developer is selected and the sale completes clawback on both the NWDA/ SRB5 funded residential properties and the Langworthy Hotel will be effected. It has been agreed in principle that the level of clawback will be calculated based on how much NWDA/ SRB5 money was used to acquire properties as a proportion of the whole cost. Depending on the extent of the development site (edged red only or red and blue) the following percentages have been calculated: On the basis of the smaller development site (edged red only): NWDA = SRB 5 = SCC = 41.92% 3.81% 54.27% c:\joan\specimen new report format.doc On the basis of the larger development site (edged red and blue): NWDA = SRB 5 = SCC = 51.16% 9.55% 39.29% The current open market valuation of the Langworthy Hotel will be deducted from the capital receipt prior to the above percentages being applied. Recommendation: It is recommended that Lead Member:(i) approves the draft Development Brief, seeking expressions of interest, for the site (ii) authorises the Director of Customer and Support Services to complete the necessary legal formalities langworthy hotel 2.doc Langworthy Hotel\ Langworthy Hotel\ Langworthy Hotel\ langworthy hotel appendix APPENDIX 2.doc 3.doc LANGWORTHY PLAN.pdf c:\joan\specimen new report format.doc