Paul D Warner, Solicitor

Public Sector Residential Land Disposal and Development Public Sector Residential Land Disposal and Development EventEvent2323rdrd June 2009 June 2009

Legal constraints 

Imposing development conditions

Site assembly and Compulsory Purchase

Deferred payment of price

Joint ventures

Procurement rules ◦ Auroux v. Commune de Roanne (ECJ 18 January

2007)◦ Economic or technical function◦ Specific objectives of the authority

Price: statutory requirements◦ Section 74 of the Local Government (Scotland)

Act 1973 – best consideration◦ Planning land – absolute duty◦ Best value amendment – not in force

Common good land

Avoid land banking

Influences method of disposal

Licence for development Disposition with title conditions – economic

development burdens

Long lease with option to purchase

Using CPOs to assist developer’s site assembly

Back-to-back agreements

Who bears the cost of compulsory

purchase?

Instalment payments - fixed dates or on

occurrence of event – negotiated prices

Clawback – occurrence of event – uplift for

higher densities

Overage – useful in rising market

Security for future liability – ranking

considerations

Need to secure best consideration

Reason for new business entity

Sharing of equity and risk

Formality of JV constitution

Whether authority’s land to be transferred to JV

– best consideration

Wholly owned subsidiaries – separate entity for

best consideration purposes

Procurement of JV partner