The report set out proposals for the Council to develop 6.66 acres of development land for open storage employment land at Childerditch Industrial Park, Brentwood, CM13 3HD.

Childerditch Industrial Park is a 42.75 acres mixed use industrial park strategically located adjacent to the A127 dual carriageway (within the South Brentwood Growth Corridor), which links to Junction 29 of the M25, less than two miles west of the property. This makes it within close proximity to the planned Lower Thames Crossing route, providing for wider links in future and solidifying the site as a successful industrial location.

The property provides industrial and warehouse accommodation totalling 173,386 sq ft, in addition to extensive areas of secure open storage, totalling 16.6 acres. This represents a very low ‘site density’ of 12.5% (built area). The total net lettable area is 24.25 acres, plus a ‘development site’ of 4.66 acres (subject to Planning), which is being extended to 6.6 aces to facilitate the relocation of the Warley Depot. The whole site was acquired in February 2021 for £59m (apportioned £54.5m for the ‘income’ and £4.5m for the development land of 4.66 acres in size).

The proposed development is to clear of shrubs and weeds the 4.6 acres site known as the development site together with the additional 2 acres of land to the southwest of the site let to Essex County Council and to create 3 market standard open storage yards, two (sites A1 and A2) of which will be let on the open market and yard B will be reserved to house the Councils depot at nil rent.

The total costs of the development are forecast to be £6.103 m split between a capital forecast of £5.460m and revenue forecast of £643k with a projected peak cash flow of £3,000,000 with a development time period of 24 weeks once the contractor has been appointed. It is anticipated that Seven Arches Investments Limited will select the development partner during planning permission process in consultation with Council Officers. There are currently 25 tenants, generating a gross rental income of £2,804,882 per annum. This development would increase this to 27 tenants and a gross rental income of £3,363,632 per annum. Producing an additional £180k net revenue to the council per annum.

This additional open market open storage space is projected to increase the in Borough employment opportunities within Class E (formally B1), B2 and B8 employment uses and storage yards and increase the number employed at the park from approximately 700-800 people by approximately 50 people.

Officers and SAIL have completed an intensive feasibility study due diligence on the proposal and considered appropriate risk management implications. A detailed feasibility study on the development is set out in Appendix A of the report. 

Cllr Naylor MOVED that discussion be taken in private session to discuss the exempt appendix and was SECONDED by Cllr Laplain. This session of the meeting, the press and public was excluded.

Following the discussion, Cllr Hossack MOVED and Cllr Bridge SECONDED to move back into private session in order to discuss the vote and recommendation of the report in the public domain.

Cllr Hossack MOVED and Cllr Poppy SECONDED that the recommendations within the report with an amendment to R2 read: That delegated authority is given to the Chief Executive, Monitoring Officer, Section 151 Officer in consultation with the Leader to take all steps necessary, including entering into any legal agreements required, to complete the development proposed at Childerditch Industrial Estate, Brentwood.

A recorded vote was requested by Cllr Hossack with 5 councillors in agreement by show of hands.

Members voted on the motion:

FOR: Cllrs Francois, Barrett, Aspinell, Barber, Dr Barrett, Bridge, Cloke, M Cuthert, N Cuthbert, Davies, Fryd, Fulcher, Gelderbloem, Haigh, Heard, Hirst, Hones, Hossack, Jakobsson, Kendall, Laplain, Lewis, McLaren, Murphy, Mynott, Naylor, Parker, Pearson, Reed, Russell, Slade, Tanner, White and Wiles (35).

AGAINST: (0)

ABSTAIN: (0)

The vote was taken by a recorded vote was RESOLVED UNANIMOUSLY.

R1. That a total capital budget of £5.460m is approved for the intended development at Childerditch Industrial Estate as set out in the report.  That this budget is profiled with the Council’s Capital and Investment Strategy as follows: 2022/23 £938,967 2023/24 £4,521,326

R2. That delegated authority is given to the Chief Executive, Monitoring Officer, Section 151 Officer in consultation with the Leader to take all steps necessary, including entering into any legal agreements required, to complete the development proposed at Childerditch Industrial Estate, Brentwood.

Reasons for Recommendation

The development of the site will produce an increase net revenue to the council, increase the employment opportunities within the borough and enable the relocation of Warley Depot to a sensible location facilitating the redevelopment of the Warley depot for good quality housing. Furthermore, by undertaking the redevelopment of the Warley depot site it would enable the wide redevelopment master plan to proceed at pace. The Industrial Park provides for a diverse range of national and local tenants, employing 700-800 persons. The proposed development seeks to expand this providing more employment opportunities. 76. The development at Childerditch Industrial Park will provide an increased net contribution to the Councils budget of £180k p.a. enabling the council to provide services to the Borough’s residents but also assist in balancing the Councils budget.