Concerns over £400k cost of council land swap deal

Councillors have called in plans by Leicester City Council to enter into a land swap agreement to pave the way for a new office development in the Cultural Quarter.

The authority wants to trade a site it owns at the corner of Queen Street and Southampton Street, near the Phoenix Cinema, with a nearby plot owned by a property developer.

However, opposition Green, Conservative, and Liberal Democrat councillors have queried the £400,000 cost of the deal to the Labour-run council.

The city council said two external evaluations had been sought on the proposal, which is now set to be debated at a council meeting on Wednesday, with critics hoping to prompt a rethink.

The council said the plot of land it wanted, the site of the now-demolished Big John's Auto Centre in Midland Street, was valued at least £1.125m and the plot it wanted to exchange was worth £930,000.

However, the authority has agreed to pay developer Rakal Ltd a balancing payment of £180,000, to reflect the difference in the values of the two sites, as well as cover stamp duty and other transaction costs totalling £220,000.

Green Party councillor Patrick Kitterick, who proposed the call in, said: "The issue that concerns us is whether we're getting value for money with this deal.

"We're giving away a plot with usable buildings on it, which could provide rental income, for a smaller plot with nothing on it, and it's going to cost us £400,000.

"It's the equivalent of living on a street in a four-bedroom house, moving next door to a three-bedroom house and paying for the privilege.

"We have concerns about the valuations the council has put on the plots too."

A council spokesperson said: "This proposal would allow us to secure land in a strategically important location for future development in the St George's area of Leicester.

"It's part of a programme of land and property acquisition at key sites in the Cultural Quarter that the council has been undertaking over recent years.

"It would help us to ensure that any future development is in line with the vision for the wider regeneration of the St George's area as a creative place to live, work and do business in.

"It would also enable us to move forward with ambitious public realm improvements, supported by government funding.

"The council sought two external evaluations as part of this process, which confirmed it would be achieving value for money."

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