Council "won't make vast amounts of income" from major redevelopment
West Berkshire Council insist that money isn't overiding factor in decision to regenerate London Road Industrial Estate
THE chief executive of West Berkshire Council has again insisted that it “will not make vast amounts of income” from the multi-million pound redevelopment of the London Road Industrial Estate (LRIE).
As part of the controversial regeneration scheme, the council has agreed to use its compulsory purchase powers to buy two pieces of land needed to deliver a vital link road from the A339 into the development.
Developer St Modwen also wants to build a mixture of residential properties, a café and an hotel on the site (shown above in its outlime masterplan published in October 2014).
The council, which has signed an agreement with St Modwen for the regeneration project, currently makes around £300,000 per annum through ground rental income from the LRIE.
It is thought that figure could rise to £390,000 per year after the project is completed – but it is not yet clear how much the council could make in total.
In a behind-close-doors council meeting in June 2013, private papers said the council “hopes the project will potentially generate both medium term income growth as well as some capital receipts”.
The documents were later made public through a Freedom of Information request.
However, the council’s chief executive Nick Carter has insisted that financial gain is not the council’s top priority.
Speaking to the Newbury Weekly News, he said: “This is not a scheme which is going to generate vast amounts of income for the council.
“Yes, we have sought at least to retain our income and St Modwen’s proposal was evaluated against ability to deliver, their track record and the quality of the scheme.
“Financial return to the council is not the overriding factor here.
“This is a complex regeneration scheme and one that involves long-term commitment.
“Parkway, Market Street, London Road – these are not the cash generators for the council people see them as.
“These are things that will improve the town, bring jobs and make it look nicer.
“It is certainly not uppermost in our mind to bring income in to the council.
“It was not driven by financial benefit to the council, it was driven by a good regeneration scheme and one I think St Modwen had best chance of delivering.”
Mr Carter said he “did not know how much money the council would make” from the scheme and said the final amount would be determined by different factors in its agreement with St Modwen.
He added that he wanted the work to start “as soon as possible” but “only once due processes had been followed”.