The Committee approved the acquisition of land from Springfield Properties (No.1) at a cost of £17 million; granted an option to Springfield Properties (No 1) to develop a site at London Road/Springfield Road; agreed the disposal price for the commercial site at London Road/Springfield to Springfield Properties (No 1) for £3 million, plus anticipated average of £2.5 million.
It also noted that this acquisition, along with others already approved by the Council, will result in their near full ownership of the Games Village Site and the disposal of land adjacent to the National Indoor Sports arena site will facilitate the development of a proposed hotel and office development.
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The net cost of proposals in the report is anticipated to be in the region of £11.5 million.
In previous reports the Committee has authorised the purchase of land from various owners with a view to achieving full site ownership and authorised the use of the compulsory purchase powers - where required - under the Commonwealth Games 2008 Act to ‘sweep up’ all outstanding and to ensure all the site was free from any title encumbrances or title defects.
Discussions have therefore continued with the major residual land owner on the site - Springfield Properties (No.1) - a subsidiary of the Progress Property Company Limited. The Executive Director of DRS has used the specialist valuation services of Colliers CRE Limited in the negotiations with Springfield Properties (No.1).
In common with many other areas, land values in Glasgow have been affected by the recent "credit crunch". Given the special nature of the Commonwealth Games Village proposal, and the anticipated interest of a number of developers in developing the Village and its related facilities, CRE Collier consider that the prices detailed above are an accurate reflection of the value of the sites being acquired/disposed of.
Councillor Archie Graham, Executive Member for Commonwealth Games delivery at Glasgow City Council, said: "The acquisition of this crucial piece of land would one of the last pieces in the jigsaw in terms of preparing to build the Commonwealth Games Athletes’ Village and would be a good investment for the city. Aside from the many benefits that this could bring, this acquisition means that twelve acres of vacant or derelict land in the city’s East End would be brought back into productive use."
(JM/NS)
