Further to our article on Friday about the council’s decision to agree to treat Vectis Holdings Ltd as a ‘special purchaser’, the background document contains information about the conditions that the Isle of Wight council has been encouraged to apply to the sale of the car park.
Reading through the document, it appears uncertain if the council will insist on the conditions being complied with. When asked, the council said, “The conditions will have to be met.”
The conditions
High up in the document (item 7, see below) it states that the council has advised Vectis Holdings Ltd that, as a minimum, it would look to apply the following conditions on to its disposal of the asset:-
- The, car park must remain as a free public car park with minimal reduction in available spaces.
- The current iconic view towards the Needles must not be obstructed and be preserved for the long term enjoyment of residents and visitors alike.
- The car park must be developed within a reasonable timeframe and to improve the overall quality and availability of the tourism offer in the local area.
These conditions are highly-likely to be popular with most people who have been concerned about the sale.
The report also states that “Vectis Holdings Ltd has confirmed that it is prepared to make a proposal to the council for its acquisition of the car park on this basis.”
All seems clear. The confusions lies much further down the document.
Restrictions on the sale
Passing through item 8, that says, “any restrictions placed by the council on the sale in respect of use and development”, might affect the value of the site, we reach the Evaluation section of the document.
Items 39 says, “One of the key issues that the council will need to take in to account before agreeing a sale of the car park to Vectis Holdings Ltd is the degree to which it as able to comply with the proposed conditions of sale as set out in paragraph 7 of this paper.” – Translated: It’s possible that Vectis Holding might not comply with all three conditions.
Assessment of ‘likely compliance’ by Vectis Holdings
The item continues, “This will be covered by a further paper to Cabinet which will assess the likely compliance of Vectis Holdings Ltd with these conditions in considering whether the council should agree to the disposal of the car park to it.” We currently don’t have access to the mentioned report – perhaps it will appear nearer to the meeting.
After having introduced a level of uncertainty, the items concludes, “The conditions of sale may reduce the capital receipt the council is able to realise from the disposal of the land, however, it is essential that such protection is delivered as part of any transaction.”
Seeking clarification
Leaving aside that the council is publicly volunteering that, as there could be conditions of use on the land, they see a price reduction as possible – which seems a strange idea when your in negotiations for a sale – their use of the word “essential” points to them being fixed that the conditions must be accepted by the purchaser.
We’ve put it to the council for clarification, but at the time of publishing hadn’t heard back.
Update 10:56 9.Jan.13 Updated with the council response to our questions on if the conditions would be insisted upon.
Image: pikerslanefarm under a CC BY-SA 2.0 license
