Car park disposal set to kickstart £100m redevelopment scheme
A KEY development site in Birmingham city centre is set to be sold off by the city council as it looks to generate funding for the further transformation of the area.
The disposal of the Great Charles Street car park is likely to generate a significant premium for the local authority.
The disposal will kickstart the £100m Great Charles Place scheme.
A report to today’s cabinet states that the loss of the site will mean a reduction in car park and advertising revenue, estimated at £0.35m.
External support may also be required to complete the development lease up to £50,000 but up to 4% of the future capital receipt can be used towards disposal costs.
The site has been identified as part of the transformation of Snow Hill in the Big City Plan.
“This is an important regeneration site within the masterplan’s boundary with the potential to deliver a high quality built environment on a key route between the Jewellery Quarter and the city core,” states the report.
“The development of the site assists in the delivery of a key objective of the Big City Plan to transform the pedestrian links between St Pauls Church and St Phillips Cathedral.”
The site was previously marketed and a preferred developer identified. Subsequently, a development agreement between parties was completed in March 2013 to develop the site as part of a four-phase scheme anchored by a major office building, a residential building and new open space.
However, the scheme was unable to progress due to the economic downturn, viability issues and lack of occupier interest.
Nevertheless, the council, keen to the see the development of the site, has maintained a constructive dialogue with the developer. As a result, revised proposals now focus on the shift in demand from office-led development to residential.
The council said the developer now wanted to bring the scheme forward in order to capitalise on the Paradise Circus redevelopment and Arena Central enhancing the appeal of the site.
The report states: “Steps have been taken to strengthen the terms in the development lease such that the developer is incentivised to bring forward development quickly.”
Subject to planning consent, the proposed scheme will comprise two phases of new apartments, serviced apartments and a hotel.
Car parking and advertising lettings income will continue to be collected by the council until the sale of the site is completed.
