A town centre car park and neighbouring land are to be sold to a developer who plans to build 216 homes there.
Worthing Borough Council is buying the High Street Surface Car Park from LCR for £542,500 before selling it and two other parcels of land, collectively known as Union Gardens, to Roffey Homes.
The purchase and sale were agreed by councillors at a joint cabinet meeting yesterday.
The plans, known as the Union Place scheme, were approved by the borough council’s planning committee in February 2024.
The council acquired the first two parcels of land in 2018 for £10.1million, with help from London and Continental Railways (LCR), to pool the land together.
A joint venture agreement between Roffey and the council was planned in 2022 to oversee the development, and split the profits, investment and risk in the scheme 50/50 between the partners.
But after the council applied to the government for support balancing its upcoming 2025/26 budget in December, in an attempt to avoid effective bankruptcy, the plans have “shifted”.
Council Leader Sophie Cox (Lab, Castle) said: “This shift is a strategic decision, that reflects not just the financial position of the council, which has changed over time, but also this council’s commitment to manage the risks of its major projects responsibly.
“Given the financial position and the internal capacity, our risk appetite has changed which is why we are now pivoting on this deal and this will unlock the potential of the site.
“The success of this site can’t be measured entirely on the financial return alone but also by its ability to deliver the site and for the social and community value.”
In 2023 the council approved the purchase of £6 million in shares in the joint venture and to put some land assets up as collateral for the joint venture.
Opposition Leader Kevin Jenkins (Con, Goring) said the report on the sale was “bereft of details” of the financial impact on the council and questioned whether the council would see a return on its investment in the site.
He said: “Unlike the similar stage report for the council’s abandonment of its influence in delivering Teville Gate, it does not indicate whether the council will be able to recover in full the funds it has invested in this site since 2019.”
Mr Jenkins also questioned whether the existing affordable housing scheme would be upheld given the council would have less control over the development after the land sale.
Ms Cox said although viability of affordable housing was a concern in developments across the borough, they would be expecting it to be carried out “as set out in the application”, or roughly 43 of the 216 homes.
Construction of the scheme is expected to start this year and be completed in 2028, with the sales of all the properties expected to be completed by 2029, according to the cabinet report.
Another move by Labour to rid the town of cars. Where are we going to park when we go shopping or to the theatre? The council will kill off shopping in the town.