Deferred Receipt Deferred Receipt MechanismsMechanisms

Frank Sheridan Frank Sheridan

Property Development ManagerProperty Development Manager

Glasgow City Council.Glasgow City Council.

The VisionThe Vision

““We want Glasgow to flourish as aWe want Glasgow to flourish as a modern multi-cultural, metropolitan city of modern multi-cultural, metropolitan city of opportunity, achievement, culture and opportunity, achievement, culture and sporting excellence where citizens and sporting excellence where citizens and business thrive, and visitors are always business thrive, and visitors are always welcome.”welcome.”

City Plan – the contextCity Plan – the context

To rebuild economic, social and physical To rebuild economic, social and physical infrastructure.infrastructure.

To encourage development to deliver To encourage development to deliver employment, housing and an educational employment, housing and an educational environment that will sustain Glasgow as a environment that will sustain Glasgow as a competitive city.competitive city.

To set both a strategic and local framework for To set both a strategic and local framework for current and future development projects and current and future development projects and delivery programmes.delivery programmes.

Strategic areas of focusStrategic areas of focus

The river corridor and Clyde Gateway.The river corridor and Clyde Gateway.

New neighbourhoods.New neighbourhoods.

Canal corridor.Canal corridor.

Nitshill corridorNitshill corridor

Strategic business sites.Strategic business sites.

Capital ReceiptsCapital Receipts

Funding for Council’s capital programme.Funding for Council’s capital programme.

Target for 2009-2012 is £129 million.Target for 2009-2012 is £129 million.

Poor market conditions.Poor market conditions.

Development funding difficult to obtain.Development funding difficult to obtain.

Where are the purchasers?Where are the purchasers?

Delivery MechanismsDelivery Mechanisms

Development lease.Development lease.

Development Agreements.Development Agreements.

Partnerships.Partnerships.

Long LeaseLong Lease

Provides security of tenure.Provides security of tenure.

Provides development obligations within a Provides development obligations within a limited timescale.limited timescale.

Provides for a ground rent, or staged Provides for a ground rent, or staged payments, with profit share.payments, with profit share.

Allows conversion to feu disposition.Allows conversion to feu disposition.

Provides for recovery of land in the event Provides for recovery of land in the event of failure.of failure.

Development AgreementsDevelopment Agreements

Ownership is retained.Ownership is retained.

Provides for an agreed development Provides for an agreed development appraisal.appraisal.

Provides for development site drawdown.Provides for development site drawdown.

Allows flexibility in price, payment method, Allows flexibility in price, payment method, and profit share.and profit share.

Provides for individual dispositions direct Provides for individual dispositions direct to purchaser of completed property.to purchaser of completed property.

PartnershipsPartnerships

Determines what each party brings to the Determines what each party brings to the table.table.

Agree targets and outcomes.Agree targets and outcomes.

Agree profit share percentage.Agree profit share percentage.

Flexible control mechanisms.Flexible control mechanisms.

Cash flow.Cash flow.

Investment funds.Investment funds.

BenefitsBenefits

Flexible approach.Flexible approach.

Collaborative / partnership working.Collaborative / partnership working.

Finance cost savings.Finance cost savings.

Development cost flexibility across multi Development cost flexibility across multi sites.sites.

Development controls.Development controls.

Trust and integrity.Trust and integrity.