Delegated Decision (embedded below for your convenience) to sell off part of Ryde Business Park could result in more jobs at Liz Earle. This in from the council in their own words. Ed
A potential major boost to the Island’s economy was revealed this week – with beauty company Liz Earle set to enter negotiations that could create 500-plus new jobs through the expansion of its site at Ryde Business Park.
The Isle of Wight Council, which owns a 15 hectare site next to the business park, is considering making a delegated decision to treat Liz Earle as a special purchaser for negotiations surrounding the site.
Providing further business opportunities for the Island
Liz Earle approached the council about acquiring the site with a view to expanding its business on the Island over the next ten years. The company is keen to acquire the land quickly to deliver the first phase of its expansion.
Director of supply and operations for Liz Earle, Fiona Greenfield, said: “We envisage that the Ryde Business Park expansion will create more than 500 jobs within our business, securing Liz Earle Beauty Co.’s presence and contribution to the Isle of Wight economy, as well as providing further business opportunities for the Island.”
Delegated Decision paper out today
The council published a paper today (Thursday 2 February) recommending that Liz Earle Beauty Co. Ltd be treated as a special purchaser for the land adjacent to Ryde Business Park.
The council’s cabinet member for the economy and the environment, Councillor George Brown, is being asked to make a delegated decision confirming that negotiations proceed.
The delegated decision report before him states that the council is allowed to deal with a single bidder (as an alternative to the open market) for a site if they can be defined as “a purchaser to whom a particular asset has a special value because of the advantages arising from its ownership that would not be available to general purchasers in the market”.
Two independent valuations sought
The council’s deputy director for economic development, John Metcalfe, said in such special bidder circumstances, it is the council’s practice to obtain two independent valuations for the asset. This helps to ensure it achieves “best consideration” for the site, which includes other factors as well as price.
“This land is zoned for economic development, and its sale and subsequent development could contribute significantly to the Island’s regeneration in difficult economic times.
“Subject to the delegated decision being made, progress with this major site could be an excellent start to 2012 for the Island.”
As part of the arrangements, the council has the power to impose social, economic and other covenants on a purchaser to ensure full benefits are achieved.
Open market approach could jeopardise new jobs
In the delegated decision report being considered by Councillor Brown, it is stressed that if the council does not proceed down the special bidder route with Liz Earle – and instead opts for an open market approach – there is a high risk that the new jobs might not be created.
The report said that no other approaches have been received and it is felt unlikely a better offer could be achieved through the open market – especially with a view to the potential jobs impact.
John Metcalfe said, if approved, the delegated decision would not commit the council to the sale of the land to Liz Earle – but would give the company the confidence that the council will work with it to achieve a sale subject to suitable terms.
Any final terms of disposal will need to be agreed by the council’s cabinet.
