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Shepway could lose out in £2.5m land sale

Posted by editor on Nov 28, 2007 - 10:57 AM
Filed under: Local authority, News

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Land sold by Shepway District Council (SDC) in 1987 for £154,000 for use by a charity is being auctioned next month with a guide price of between £2.2 to £2.5m.

But even after the sale of the covenants which would allow homes to be built on the land, the council could benefit by just £620,000, less than a quarter of the possible £2.5m which has been quoted as the top guide price by the auctioneers.

Lot 62 in the Clive Emson auction brochure for December 2007 describes the site as 4.63 acres, of which almost 3 acres has outline planning permission for residential development.

In January 2007 the trustees of the Hawkinge Activities and Adventure Centre Limited applied for outline planning on the land near Siskin Close in Hawkinge.

The application for housing was approved but it was not until June 2007 that an agreement was reached for the company to pay Shepway council £467,500 to have the covenants released.

Ward councillor David Godfrey said: "I have been looking into this for sometime in response to local residents concerns. I am not happy with the situation and will be seeking further clarification."

In response to points raised by the Hawkinge Gazette, Shepway District Council has replied as follows:

Land at Siskin Close, Hawkinge

1) When we sold the land in 1987 we imposed covenants. We agreed what the value of those covenants were.

2) We have taken valuation and legal advice about whether this is an appropriate valuation and we are told that it is.

3) The money we will be paid if the land is sold is for the release of the covenants. The council does not own the land.

4) Hawkinge Activities and Adventure Centre Ltd is a registered charity and its activities are governed by the Charity Commissioners. It is the Charity Commissioners to whom any queries concerning a charitable body’s activities should be addressed.

5) The council must consider the best use of any money it receives for the benefit of the district as a whole.



 

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