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The development agreement: the open book policy

Howard Holdings' activities as the council’s development partner on this project are set out in detail and closely regulated through a comprehensive “Development Agreement” and accompanying lease documents, which are available to the public.

The basic tenets are:

  • The council shall receive those items of civic re-provision set out in the Agreement
  • The developer shall take a long lease of the peninsula, excluding the dockside, ferry terminal, theatre, and other parts
  • The developer provides all funding, and finances the project over the seven year estimated start to finish period. This is at NO cost to the council and taxpayers. The developer is not eligible to receive any grants, subsidies or payments from the public purse for these works
  • The council’s civic re-provision is the equivalent of paying a “land purchase price” estimated at circa £25 million
  • Howard Holdings receive 17.5% profit (which is made on completion after the sale and letting of the whole private residential and commercial elements some seven years later)
  • In the event that super profits occur, the council receive 50% of that sum defined as the “Overage”

Howard Holdings has an “open book” policy with the council which means that all information is shared at every stage, in true partnership. The project has and will continue to be independently vetted by a leading firm of independent valuers to ensure that the council and the community get the maximum benefit.

To date, Howard Holdings has spent in excess of £1million with commitments which will be in excess of £3 million as it moves to the next phase. This includes its own staff as well as that of specialist consultants, researchers, testing, simulation, analysis, and reports.

The council has spent £66,000 on legal, valuation and other professional fees. The legal and valuation fees incurred by the council, up to a total of £90,000, will be reimbursed by the developer, unless development doesn’t proceed, then the council will have to meet those costs.