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Government revokes OEM sites
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The Tender related to North Gorge and Buena Vista, OEM bid ?15 million. ?1.5 million (being 10% deposit) was paid in October 2005, and a further ?3 million in January 2006.
The site areas are as follows:
Rosia Tanks 3,350 m2
Cumberland Terraces 3,680m2
Bayview Terraces 1,390m2
North Gorge 9,900m2
Buena Vista 14,000m2
The OEM bid included the commitment to build 200 affordable homes on the Cumberland Terraces site. During the negotiation Government obtained OEM's commitment to build a further 200 homes on the Rosia Tanks site. At the planning stage it was felt that the sites were not large enough to acceptably accommodate 400 flats, and so some were transferred to the Bayview Terraces site. The negotiated commercial agreement then attributed ?3 million out of the ?15 million total premium, to these three sites (?1m per site).
No site was sold to OEM at the Aerial Farm, and thus no premium paid. That arrangement, now also revoked, was for a licence to operate a cement plant on a site at Aerial Farm for a few years. That arrangement was in consideration of OEM's agreement to reduce the selling prices of the flats at the three affordable home sites by a total of ?3 million, to make them more affordable.
There has not yet been any agreement between the Government and OEM what proportion if any, of the premium, and what proportion of the sums spent by them in construction (the benefit of which has now been inherited by the Government) will be reimbursed to it. That process is ongoing.
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