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Public reports pack PDF 6 MB - East Lindsey District Council

Public reports pack PDF 6 MB - East Lindsey District Council

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environmental considerations). The new chalets would be designed astraditional beach huts (possible options are shown at Appendix D), similarto the existing stock. Planning Officers at ELDC do not anticipate anyproblems regarding planning permission. Buyers would be able to choosefrom an agreed colour palette to personalise their hut.3.11 To build all 18 new chalets requires an initial capital outlay of £90K, whichhas been incorporated into the revised capital programme. Each unitwould cost around £5K, with a one-off premium of £13K per unit,generating a return to the <strong>Council</strong> of £8K per unit. The capital receiptfrom sales would be around £234K, assuming that all 18 are built andsold. Assuming that the original investment returns to the capitalprogramme, this leaves £144K, subject to sales, a proportion of whichcould fund further phases of work.3.12 The new chalets would be available to purchase on a 15-year lease, withan initial premium being paid, in addition to a nominal rent at a rate of £1per year. The lease would be excluded from the Landlord and Tenant Act,preventing the lessee having an automatic right to renew the lease. Allrepairing and insurance responsibilities would lie with the purchaser.3.15 The new huts would be advertised throughout the 2011 summer seasonto advance sales. Provided that there was sufficient interest frompotential buyers (eg at least 6 of 18 units having secured buyers) by 1September 2011, the project would progress in blocks (eg 6 at a time) or,with full sales, in its entirety. Mablethorpe and Sutton Town <strong>Council</strong> hasrequested that any development does not happen piecemeal (AppendixE). By progressing in blocks as proposed, this will protect the financialinterests of the <strong>District</strong> <strong>Council</strong>, without detriment to the foreshorelandscape. If however, only one or two units had been secured by 1September review date, the project could either be put on hold andadvertised further or aborted completely.3.16 To allow time for appropriate consultation, design and planningapplications, no work would start on site before 1 October 2011, with thenew chalets being open for the 2012 season. Depending on the design,there is potential for the chalets to be built in sections, with theseconstructed off-site, which could speed up installation on site, minimisingdisruption in the area.Task Start CompletionDesign / permissions 19 April 2011 15 September 2011Advertising for sale 15 July 2011 Review 1 September2011 & ongoingPage 98

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