Sunderland City Council chiefs approve sale of school site to Gentoo for £1 to pave way for housing development

Housing firm Gentoo is hoping to develop two sites in the Carley Hill area offering up to 225 homes and bungalows.

This includes 115 homes at the former Carley Hill School site and 110 homes on an area of open space adjacent to Fulwell Quarry.

Subject to planning permission, the new housing would be available for affordable rent and shared ownership.

RELATED: 13 archive pictures of Carley Hill Primary School

According to a report prepared for Sunderland City Council’s cabinet this week, the council-owned sites are ‘unviable for development without significant capital investment,” due to previous uses.

To help progress development and allow Gentoo to secure grant funding, council chiefs approved the disposal of the former Carley Hill School site to Gentoo Group Ltd for £1.

A report states this figure would “reflect market value which has been confirmed by a third-party valuation.”

Council chiefs also agreed to enter into an “option agreement” that would allow Gentoo Group Ltd to secure an interest in the second site near Fulwell Quarry, known as property two, but defer completion of the sale.

This is until the necessary funds are in place and development at the former Carley Hill School site has progressed.

According to cabinet papers, the sale price of property two is also expected to be £1 due to the “extensive abnormal costs” associated with the remediation of the site.

Councillor Rebecca Atkinson, cabinet member for Dynamic City, outlined the proposals for both sites at a cabinet meeting on February 9.

“The council owns the freehold of two sites on Emsworth Road in Sunderland, the former Carley Hill School and an area of open space adjacent to Fulwell Quarry,” she said.

“The sites are currently surplus to council requirements and proposals have been received from Gentoo which would see it develop up to 225 new affordable homes, subject to receipt of satisfactory planning permission and necessary grant funding.

“The proposed developments will provide high-quality affordable new homes utilising modern methods of construction and low carbon technology in keeping with the council’s objective to deliver more and better housing.

“Gentoo would directly develop, own and manage the two developments alongside its existing homes in the area.

“Survey work has revealed significant constraints associated with former land use which makes development financially unviable without significant capital investment or grant support.

“It’s therefore proposed that a sale price of £1 would reflect market value and best consideration.

“Gentoo is deemed to be best placed to deliver the proposals as a result of its ability to secure third party grant funding and its ownership of land adjacent to property two which is required to create access to that development site.

“Cabinet is recommended to approve the disposal of property one [Carley Hill School site] and grant an option to purchase property two to Gentoo.”

Cabinet agreed the recommendations in the report and discounted alternative options such as retaining the properties, disposing of them later, or selling them to another interested party.

A cabinet report goes on to say: “Site investigation and appraisal has demonstrated that the properties are unviable for development without significant grant funding and would therefore not be attractive to private developers.

“Whilst other registered housing providers would be able to secure grant support through the Homes England Affordable Homes Programme, initial market engagement has suggested that an additional capital contribution would be sought from the council.

“Third-party ability to develop property two is also restricted by Gentoo’s adjacent land ownership which is required to create access to the development site.”

More information on Gentoo’s plans for Carley Hill can be found here: www.gentoogroup.com/for-customers/find-a-home/our-affordable-homes-plan/carley-hill-sunderland