ASDA rivals get go ahead from council on option to buy land

The option to buy two strips of redundant land next to the Newport Football ground from the Isle of Wight council for £350,000 will last for five years.

Monopoly houses

At last night’s Isle of Wight Executive meeting, members approved a proposal to give South Coast Leisure (SCL) an option to purchase redundant strips of council land by St George’s Park for £350,000.

Thanks to Cllr Geoff Lumley for sharing the news (no media attended the meeting) who also added that a further valuation from the District Valuer was presented, putting the value of the land at £370k (papers for the meeting had stated previous valuations at £441,450).

The agreed price to sell the land should SCL take up the option in the next five years will be £350,000.

£20m windfall for the council?
Concerns had been raised that if SCL had taken the council’s planning decision on the ASDA application to judicial review, the chances of the Council receiving the £20,000,000 (expected figure after associated costs) in Section 106 money from ASDA would been reduced.

Cllr Geoff Lumley (Lab) and his fellow party members Cllr Alan Hollands will present their motion at tonight’s full council meeting calling on the council to spend the money more imaginatively that to simply invest it.

Image: © Tax Brackets

Wednesday, 21st January, 2015 8:59am

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Filed under: Business, Island-wide, Isle of Wight Council, Isle of Wight News, Newport, Top story

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21 Comments on "ASDA rivals get go ahead from council on option to buy land"

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Craig

I realise this is probably being sold for less than market value, but the long-term gain is going to be good if the £20m materialises. I just hope the arrival of Asda won’t affect Newport businesses in the way some have suggested.

bruice

That’s it.

Asda will not be coming to newport.

Smart move iwcc; shot yourself in the foot

Check the paperwork

I don’t think that SCL are now planning to build a supermarket there, so not sure why you think Asda won’t come. SCL wanted the option to buy the land so they could develop something else there instead.

Wendy hayden

Have a read it wrong? But “should slc take up the offer to buy in next 5years”? Does this now mean no Asda and also the site remaining empty for up to yet another 5 years? Are the council merely trying to get a bartering war going to push up the price? Surely it would be better to sell and have it developed to create jobs?

davidwalter
I agree with Geoff that it isn’t 106 money but I don’t agree with Geoff that £20 million of capital — from the sale of land belonging to residents of the Isle of Wight — should be blown on padding living conditions. It MUST be invested. However, rather than invest it on the money markets which the Independents are proposing, I would like to see it invested… Read more »
Geoff Lumley

DW – ‘blown on padding living conditions’! So speaks a Tory…….Look at the list of things Labour suggests protecting and you will see the alternative world of some Tories compared to ordinary people. And investing it in future capital projects is something we would do, rather than borrowing, with the costs that entails.

davidwalter

GL — Leaving party politics out of it, what do you think of my suggestion?

Geoff Lumley

It shows some much needed imagination, which we need from this Council.

Stewart Blackmore
How about, DW, if you want to invest it in capital projects, lobbying for some of it to be spent on real social housing – what we used to call council housing in the old days before Thatcher sold off most of them helping to create the present housing crisis. This would have many benefits including creating thousands of jobs, employing skilled workers, creating REAL apprenticeships and… Read more »
tiki

Stewart – how do we know those thousands of jobs will go to islanders? What percentage of Barratt home employers are island based (can we find out?). Have they created 1000’s of jobs? Wasn’t there a bloke in the paper last week who wanted social housing but has turned down 12 properties because they were in the ‘wrong area’.

Cynic

Tiki is right. I seem to recall that, when Pan Meadows was being built, Islander builders complained to me that the majority of the workers on site were from the mainland.

(The same with Tescos Ryde and I expect with the forthcoming ASDA as corporations like them – and Spectrum Housing- have long term deals with construction companies.)

davidwalter

tiki — Yes, I am told that most building jobs go off-island. Good for B&Bs who put up temporary workers but no good for the long-term outlook of the Island or Islanders.

davidwalter

SB — It’s a subject dear to my heart. Maybe we can discuss when we next meet?

Rowan

It’s a shame we’re getting Asda at all, when they’re owned by Walmart, who are not exactly known for their ethical behaviour.
http://en.m.wikipedia.org/wiki/Asda

davidwalter
With retail margins under severe pressure it’s hard to see how ASDA can justify entering the IoW. The market is static in volume, falling in value with reducing margins. It’s no good for the Island as any jobs created will be at the expense of jobs in other retail outlets. As I have been saying in public and direct to councillors, we must assume that this money… Read more »
Cynic

Supermarkets make up their losses by screwing their suppliers with their draconian contracts. Walmart does the same in spades…. and to their employees.