TAMWORTH Borough Council has revealed that the amount it received for the sale of the former Tamworth Golf Course site to Redrow Homes is £25.2 million.
The authority received £1 million of that sum on completion of the sale in March this year and will receive the rest in three tranches in September 2016, 2017 and 2018, which will be reflected in the Council’s accounts for the year in which it is received.
Under Government legislation, capital receipts – money raised from the sale of local authority assets – cannot be spent on running council services. This money must be used to fund new construction or regeneration of existing property.
Tamworth Borough Council is now investigating ways of using the £25.2 million from the sale of the former golf course site to invest in projects which will regenerate Tamworth, as well as generating sustainable income in the long term.
Leader of Tamworth Borough Council, Cllr Daniel Cook, said: “We are looking to invest in Tamworth, to regenerate the town centre and the borough as a whole and also to create an ongoing and sustainable income stream. This will in turn make Tamworth Borough Council more self-sufficient and less reliant on ever-shrinking Government grants.
“Hopefully, if this can be done – and it’s early days – it will bring real change to Tamworth and improve our borough for all.
“This investment in regeneration is in line with our original vision when we took the decision to sell the former golf course site. It will allow us to develop an investment strategy to consider options for generating sustainable income from our assets, services and business interests.”
Cllr Steve Claymore, Cabinet member for Regeneration, said: “We promised the people of Tamworth from the very beginning that we would get the best possible value from the sale of the former golf course, to secure the best deal to allow us to invest in the future of Tamworth and regenerate the borough.
“The investment of the £25.2 million capital receipt in regeneration projects will help us to ensure a prosperous and secure future for the borough as a whole.”
The 60 hectare former golf course site off Eagle Drive in Amington has outline planning permission for the building of up to 1,100 homes, along with a new primary school, extension to Hodge Lane Local Nature Reserve and community woodland.
A reserved matters planning application, including details on the layout of the development and the design of the homes has been submitted and is expected to be considered by Tamworth Borough Council’s Planning Committee on June 7.
In addition to the £25.2 million sale price, Redrow Homes has also entered into a legally-binding Section 106 agreement to ensure that the development provides benefits for the whole borough and its residents.
The Section 106 agreement for the development of the former golf course site includes:
- 20% affordable homes on the site
- A new primary school providing 420 places, including nursery provision
- £3.5m for the improvement of secondary and sixth form education
- £1m towards the provision of a new leisure centre to serve all of Tamworth
- £500,000 for improved provision of sports pitches across the borough
- £500,000 for the creation of the new community woodland
- £1.2m for the creation and maintenance of public open space, natural play area and sustainable urban drainage system
- A new bus service running between the development and Tamworth town centre from 7am to 7pm, Monday to Saturday, in response to a large number of requests from Amington residents.