Financial arrangements

Our interpretation of the contract terms relating to financial arrangements between Cheshire East and Wilson Bowden.

  • The site will be leased to Wilson Bowden (who can pass on their lease to a ‘fund or an investor’); and the Council will receive from the leaseholder either 5% of net revenue in each year or £250k, whichever is the higher.
  • The developer will pay CEC £400k in instalments as compensation for the loss of car park income over a 2 year construction period. The new multi-storey car park operator will come to an agreement with CEC when revenue kicks in: charges will be set to discourage long term parking; tariffs are to be reviewed annually.
  • If the development turns out to be worth more than it cost to build (whether sold on or not) on a date specified as the Calculation Date, the council will get 50% of A – B where A is the amount received/ the market value and B is total development costs plus 13%.  The Calculation Date is the earlier of six months following the disposal of the development, 24 months after completion of the final lease, where there is no disposal, or six months after the Construction Long Stop Date.

Timescales

Pre-conditions

Viability assessment

Incentives

 

  • RSS
  • Facebook
  • Twitter