Hungate land sale ‘best for jobs’ (From York Press)
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Hungate land sale ‘best for jobs’
9:52am Wednesday 3rd October 2012 in News
By Julie Hayes, Business editor
An artist’s impression of how the Hiscox headquarters could look.
TOP councillors are set to rubber-stamp the sale of land at Hungate to allow the development of a new office in York for insurance giant Hiscox.
Council officials have warned in a report that the potential investment could be lost if the site is placed on the open market for higher offers.
The site was originally proposed as the council’s new headquarters until the authority withdrew its own planning application in 2008, following criticism of its plans.
The council revealed it asked parties who had expressed an interest in the site to submit offers as it progressed discussions with Hiscox.
The highest bid, the value of which is undisclosed, was from a developer intending to build a 176-apartment “apart-hotel” with a small retail development of about 5,000 to 10,000 sq ft.
The scheme was expected to create 60 direct jobs, although the report said the likelihood of displacement – with workers expected to move into the roles from existing tourism jobs – meant the impact was more likely to be 31 full-time employees and an economic impact of £718,000 by 2026.
The lowest bid was for a 150-bed three-star hotel, which would provide 100 jobs, or 51 full-time employees, taking into consideration the effect of displacement, and add £1.55 million to York’s economy by 2026.
The Hiscox development, of 24,000 sq ft of office space and an £18 million 262-bedroom three-star hotel, is expected to create 400 jobs initially – 300 at Hiscox and 100 at the hotel – with the potential for 200 more at Hiscox later.
The combined investments in the office and hotel could also lead to up to 64 indirect jobs through supply chains, potentially adding £42 million to York’s economy by 2026.
The report said the land was given a nominal value of £3.55 million when the council bought it for its headquarters. It had since spent a further £227,000 on archaeological investigations and clearance work. However, an updated valuation had shown a drop in land values.
It said the council would incur borrowing costs of £90,000 per £1 million it lost out on in the deal, but any capital receipt would improve its overall debt position.
The report concluded the Hiscox bid “while not the highest capital receipt, delivers by far the largest economic benefit to the city as a whole and creates ten times more jobs” as the highest bid.
The report will be considered by the council’s cabinet on October 9.
Comments(32)
Scarlet Pimpernel
says...
12:05pm Wed 3 Oct 12
The council had planned their offices would accommodate 1,600 on the site. The site will now only provide a maximum of 600 jobs - a loss of potentially up to 1,000.
The gross development value of the site by Harrison suggests that it will be in the region of £23m (hotel @ £18m plus 24,000 sq ft offices @ say £200/sq ft). A land value of 25% of GDV might not be unreasonable; equating to between £5m and £6m. Sounds very much like it has been sold on the cheap ? Why are the council so secretive/sensitive about disclosing the selling price - don't we (York residents) have a right to know ?
Finally, according to their latest half-yearly report, Hiscox made a pre-tax profit of £125.8m and only paid £1m in tax. The council give them an incentivised land deal to build offices here, but, York-based Persimmon Homes, here since 1976, who pay 24% corporation tax on their profits, are expected to provide 35% affordable housing at Germany Beck. Where is the fairness and equality Coun Alexander ? Truly shameful treatment of housebuilders in York, whilst a company which is contributing less tax to this country is given preferential incentives.
Scarlet Pimpernel
says...
12:08pm Wed 3 Oct 12
Travelling_Man
says...
12:23pm Wed 3 Oct 12
Even on the artist's impression this new building looks hideous!!
Hopefully the same bodies who were critical of the council's office plan will lobby on this proposal.
Don't these Architects ever learn, is this their idea of blending into the area?
Jackanory2
says...
1:03pm Wed 3 Oct 12
meme
says...
1:12pm Wed 3 Oct 12
Jackanory2 Pimpernel has a point. The present incumbents are in charge and they have made this decision but seem scared of saying why they made it and how so try to hide behind ..''of course it was marketed '' typecomments when it was not.
If they came clean and were honest and said ''we felt the jobs were vital to york and if it means we have to lose money on the site to secure those jobs we felt that was the right thing to do'' people could make thie mind up on the facts rather than the spin
Its all about trust and respect which is seriously lacking in politicians and the quicker they realise honesty is the best policy the faster they wil regain both
Ignatius Lumpopo
says...
1:15pm Wed 3 Oct 12
yorkborn66
says...
2:31pm Wed 3 Oct 12
yorkborn66
says...
2:33pm Wed 3 Oct 12
Scarlet Pimpernel
says...
2:34pm Wed 3 Oct 12
Jackanory2 wrote:Oh yes I can - I already did, and will continue to do so. It's rotten to the core - full of politicised officers in league with the marxists running things now. Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!
Hang on Scarlet Pimpernel, I have absolutely no allegiance to any party, but even I know that this was all caused years ago and you can't blame the eejits we have at the moment.
Jam tomorrow
says...
2:36pm Wed 3 Oct 12
Ignatius Lumpopo wrote:Well it isn't that ugly but could it not be moved back 3 metres so that the Black Swan dominates the scene. Come on Councillors; retain the ownership of that little extra 3 metres of pavement. Hiscox owe us that for a cheap deal.
What a stunningly ugly building. Didn't the architect notice the Black Swan next door? It's not conspicuously vernacular, is it?
I do agree jobs are main consideration.
Scarlet Pimpernel
says...
2:39pm Wed 3 Oct 12
meme wrote:But, then they would have to be consistent, and forego affordable housing to allow housebuilders to buuld as much needed private housing and providing more construction sector jobs.
The council revealed it asked parties who had expressed an interest in the site to submit offers as it progressed discussions with Hiscox. Jackanory2 Pimpernel has a point. The present incumbents are in charge and they have made this decision but seem scared of saying why they made it and how so try to hide behind ..''of course it was marketed '' typecomments when it was not. If they came clean and were honest and said ''we felt the jobs were vital to york and if it means we have to lose money on the site to secure those jobs we felt that was the right thing to do'' people could make thie mind up on the facts rather than the spin Its all about trust and respect which is seriously lacking in politicians and the quicker they realise honesty is the best policy the faster they wil regain both
It's all an insidious conspiracy, with propaganda, spin and lies fom York's own A&E - for accidents and emergencies you don't have to look further than the marxist twosome; Alexander & England - cut and shut reports a speciality - just ask Mike Slater !!!!
Scarlet Pimpernel
says...
3:04pm Wed 3 Oct 12
In the case of Hiscox, it is the loss incurred by selling a site at a discount to it's market valuation of £5m for how much ??? They won't tell us. Why ? Because they are afraid of criticism for lack of commercial nous.
In the case of York housebuilders, it would cost nothing. All they have to do is drop the ridiculous, greedy, unworkable, affordable housing requirements. This would result in thousands of jobs and thousands of houses and hundreds of millions in revenue to York's economy - much more than the Hiscox deal provides and at no cost to York residents.
Fairness, equality and consistency in York ? Not a chance with A&E - GET THEM OUT, ASAP !
Scarlet Pimpernel
says...
3:10pm Wed 3 Oct 12
Fairness, jobs and equality ?
Not a chance with A&E......
Get them out, ASAP !
perplexed
says...
4:24pm Wed 3 Oct 12
Scarlet Pimpernel wrote:Prozac, anyone!
New chant for the anti-Alexander and England league:
Fairness, jobs and equality ?
Not a chance with A&E......
Get them out, ASAP !
York1900
says...
4:32pm Wed 3 Oct 12
Where are the jobs HSBC were going to bring to York ?
HSBC axes £300m data centre plans for Monks Cross, York
AngryandFrustrated
says...
5:26pm Wed 3 Oct 12
Scarlet Pimpernel wrote:Are you Mr Crabtree in disguise?!!! You seem awfully obsessed with affordable housing quotas in York and appear to want to try and allude to them in virtually every posting on this story.
How much does job creation cost York Council ? In the case of Hiscox, it is the loss incurred by selling a site at a discount to it's market valuation of £5m for how much ??? They won't tell us. Why ? Because they are afraid of criticism for lack of commercial nous. In the case of York housebuilders, it would cost nothing. All they have to do is drop the ridiculous, greedy, unworkable, affordable housing requirements. This would result in thousands of jobs and thousands of houses and hundreds of millions in revenue to York's economy - much more than the Hiscox deal provides and at no cost to York residents. Fairness, equality and consistency in York ? Not a chance with A&E - GET THEM OUT, ASAP !
Despite being a lifelong Labour voter, I am not a fan of either Alexander or England, and will happily use the term A&E for them, but to say "Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!”" is a step too far and I would enquire if you have any idea what marxism/communism was about? I suspect not because if you did, you would be well aware that if they did lean towards that political view, they wouldn't be trying to encourage Hiscox and other large companies to come to, and invest in, York.
Remember Hiscox and the sale of land to them? The subject matter of this story?! Thought not. We seem to be self obsessing about house builders and the unfairness of the affordable housing policy. I don't want to be the one breaking it to you, but I suspect that you will have very few takers for your new chant given that it makes you look a bit, well, "mis-informed".
fulfordphilosopher
says...
7:07pm Wed 3 Oct 12
I supose CYC could have said nothing doing but who holds all the aces? The jobs would have go elsewhere.
Even AndyD
says...
8:37pm Wed 3 Oct 12
Scarlet Pimpernel wrote:Hang on a sec, what is wrong with feminism!!?
Jackanory2 wrote:Oh yes I can - I already did, and will continue to do so. It's rotten to the core - full of politicised officers in league with the marxists running things now. Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!
Hang on Scarlet Pimpernel, I have absolutely no allegiance to any party, but even I know that this was all caused years ago and you can't blame the eejits we have at the moment.
Mrs Pimpernel will lock you in the shed for that one! ;-)
Scarlet Pimpernel
says...
9:42pm Wed 3 Oct 12
Even AndyD wrote:It is not right for the Chief Exec to overtly pursue an agenda of inequality, in promoting the female gender - she is not a women's rights campaigner.
Scarlet Pimpernel wrote:Hang on a sec, what is wrong with feminism!!?
Jackanory2 wrote:Oh yes I can - I already did, and will continue to do so. It's rotten to the core - full of politicised officers in league with the marxists running things now. Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!
Hang on Scarlet Pimpernel, I have absolutely no allegiance to any party, but even I know that this was all caused years ago and you can't blame the eejits we have at the moment.
Mrs Pimpernel will lock you in the shed for that one! ;-)
Furthermore, to say on twitter that she was indebted to Eric Hobsbawn, the marxist historian/academic betrays her political beliefs, when her position requires her to be politically neutral.
She has a reputation for being a bully, and is disliked and viewed with suspicion by council staff.
I just don't think she is good for York, and I don't fall for the faux loyalty to York and Yorkshire. She is scottish, not one of us !
Scarlet Pimpernel
says...
9:49pm Wed 3 Oct 12
fulfordphilosopher wrote:They could also have sold the site to the highest bidder, and allowed Hiscox to approach the site purchaser to build the offices for them. It just seems a bit too cosy and incestuous with Harrisons building the West Offices. Deals within deals to the exclusion of fair competition. This council is tarnished.
I have been saying for years that big business rules us and here is more proof. They call the shots and the politicians dance to their tune. All politicias all parties.
I supose CYC could have said nothing doing but who holds all the aces? The jobs would have go elsewhere.
pedalling paul
says...
9:58pm Wed 3 Oct 12
Scarlet Pimpernel wrote:It's always tough at the top, as any good Chief Executive will testify. But maybe you've never been there.
Even AndyD wrote:It is not right for the Chief Exec to overtly pursue an agenda of inequality, in promoting the female gender - she is not a women's rights campaigner.
Scarlet Pimpernel wrote:Hang on a sec, what is wrong with feminism!!?
Jackanory2 wrote:Oh yes I can - I already did, and will continue to do so. It's rotten to the core - full of politicised officers in league with the marxists running things now. Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!
Hang on Scarlet Pimpernel, I have absolutely no allegiance to any party, but even I know that this was all caused years ago and you can't blame the eejits we have at the moment.
Mrs Pimpernel will lock you in the shed for that one! ;-)
Furthermore, to say on twitter that she was indebted to Eric Hobsbawn, the marxist historian/academic betrays her political beliefs, when her position requires her to be politically neutral.
She has a reputation for being a bully, and is disliked and viewed with suspicion by council staff.
I just don't think she is good for York, and I don't fall for the faux loyalty to York and Yorkshire. She is scottish, not one of us !
capt spaulding
says...
10:03pm Wed 3 Oct 12
Scarlet Pimpernel
says...
10:06pm Wed 3 Oct 12
AngryandFrustrated wrote:They play a clever and subtle game.
Scarlet Pimpernel wrote:Are you Mr Crabtree in disguise?!!! You seem awfully obsessed with affordable housing quotas in York and appear to want to try and allude to them in virtually every posting on this story.
How much does job creation cost York Council ? In the case of Hiscox, it is the loss incurred by selling a site at a discount to it's market valuation of £5m for how much ??? They won't tell us. Why ? Because they are afraid of criticism for lack of commercial nous. In the case of York housebuilders, it would cost nothing. All they have to do is drop the ridiculous, greedy, unworkable, affordable housing requirements. This would result in thousands of jobs and thousands of houses and hundreds of millions in revenue to York's economy - much more than the Hiscox deal provides and at no cost to York residents. Fairness, equality and consistency in York ? Not a chance with A&E - GET THEM OUT, ASAP !
Despite being a lifelong Labour voter, I am not a fan of either Alexander or England, and will happily use the term A&E for them, but to say "Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!”" is a step too far and I would enquire if you have any idea what marxism/communism was about? I suspect not because if you did, you would be well aware that if they did lean towards that political view, they wouldn't be trying to encourage Hiscox and other large companies to come to, and invest in, York.
Remember Hiscox and the sale of land to them? The subject matter of this story?! Thought not. We seem to be self obsessing about house builders and the unfairness of the affordable housing policy. I don't want to be the one breaking it to you, but I suspect that you will have very few takers for your new chant given that it makes you look a bit, well, "mis-informed".
Their positions as leaders of the council, require them to encourage inward investment, and they are both career-obsessed; using York as a stepping stone. The jobs and growth agenda is a front. It's the hidden agenda's and manipulation of the system to suit these agendas that is most worrying.
There is a lack of transparency, fairness, equality, consistency and clarity in the decisions that are made, and I personally think that they are not achieviung best value.
York's biggest problem is housing, and there is no action whatsoever by the council to improve the situation. Their policies have been an absolute catastrophe, and massive failure, and they are doing their best to sweep the true numbers under the carpet.
If we are not careful A&E will put York into intensive care !!!
Scarlet Pimpernel
says...
10:17pm Wed 3 Oct 12
pedalling paul wrote:It's a results business, and where is the housing, where is the CS/LDF or local plan ? A community stadium, John Lewis and 300 jobs from Hiscox have been easy giveaways, and don't compensate for the underperformance of CoYC's leaders.
Scarlet Pimpernel wrote:It's always tough at the top, as any good Chief Executive will testify. But maybe you've never been there.
Even AndyD wrote:It is not right for the Chief Exec to overtly pursue an agenda of inequality, in promoting the female gender - she is not a women's rights campaigner.
Scarlet Pimpernel wrote:Hang on a sec, what is wrong with feminism!!?
Jackanory2 wrote:Oh yes I can - I already did, and will continue to do so. It's rotten to the core - full of politicised officers in league with the marxists running things now. Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!
Hang on Scarlet Pimpernel, I have absolutely no allegiance to any party, but even I know that this was all caused years ago and you can't blame the eejits we have at the moment.
Mrs Pimpernel will lock you in the shed for that one! ;-)
Furthermore, to say on twitter that she was indebted to Eric Hobsbawn, the marxist historian/academic betrays her political beliefs, when her position requires her to be politically neutral.
She has a reputation for being a bully, and is disliked and viewed with suspicion by council staff.
I just don't think she is good for York, and I don't fall for the faux loyalty to York and Yorkshire. She is scottish, not one of us !
Don't patronise me either. I'm a resident, and have every right to express my views, concerns and criticisms. Some of us have more important things to be concerned about other than cycle tracks !
fulfordphilosopher
says...
10:22pm Wed 3 Oct 12
Scarlet Pimpernel wrote:The point I was making was that a big firm like Hiscox probably never pay the market value, they will always use jobs as leverage. I guess they got a better deal in York than anywhere else....... Big business rules!!!!
fulfordphilosopher wrote:They could also have sold the site to the highest bidder, and allowed Hiscox to approach the site purchaser to build the offices for them. It just seems a bit too cosy and incestuous with Harrisons building the West Offices. Deals within deals to the exclusion of fair competition. This council is tarnished.
I have been saying for years that big business rules us and here is more proof. They call the shots and the politicians dance to their tune. All politicias all parties.
I supose CYC could have said nothing doing but who holds all the aces? The jobs would have go elsewhere.
Scarlet Pimpernel
says...
10:24pm Wed 3 Oct 12
pedalling paul wrote:You avoid the points and criticisms I make - defend her on these issues.
Scarlet Pimpernel wrote:It's always tough at the top, as any good Chief Executive will testify. But maybe you've never been there.
Even AndyD wrote:It is not right for the Chief Exec to overtly pursue an agenda of inequality, in promoting the female gender - she is not a women's rights campaigner.
Scarlet Pimpernel wrote:Hang on a sec, what is wrong with feminism!!?
Jackanory2 wrote:Oh yes I can - I already did, and will continue to do so. It's rotten to the core - full of politicised officers in league with the marxists running things now. Feminist, marxist historian, comrade England and Mr Leader; Mao Tse Alexander !!!!
Hang on Scarlet Pimpernel, I have absolutely no allegiance to any party, but even I know that this was all caused years ago and you can't blame the eejits we have at the moment.
Mrs Pimpernel will lock you in the shed for that one! ;-)
Furthermore, to say on twitter that she was indebted to Eric Hobsbawn, the marxist historian/academic betrays her political beliefs, when her position requires her to be politically neutral.
She has a reputation for being a bully, and is disliked and viewed with suspicion by council staff.
I just don't think she is good for York, and I don't fall for the faux loyalty to York and Yorkshire. She is scottish, not one of us !
Are you saying she's a good one ?
If so, elaborate..... ? !!!!
Scarlet Pimpernel
says...
10:39pm Wed 3 Oct 12
fulfordphilosopher wrote:I expect that the real winners will be Harrisons, not Hiscox. I hope so, because they are the real brains, not the commercially unaware CoYC.
Scarlet Pimpernel wrote:The point I was making was that a big firm like Hiscox probably never pay the market value, they will always use jobs as leverage. I guess they got a better deal in York than anywhere else....... Big business rules!!!!
fulfordphilosopher wrote:They could also have sold the site to the highest bidder, and allowed Hiscox to approach the site purchaser to build the offices for them. It just seems a bit too cosy and incestuous with Harrisons building the West Offices. Deals within deals to the exclusion of fair competition. This council is tarnished.
I have been saying for years that big business rules us and here is more proof. They call the shots and the politicians dance to their tune. All politicias all parties.
I supose CYC could have said nothing doing but who holds all the aces? The jobs would have go elsewhere.
Housebuilders are big business also - Persimmon and Barratt are both twice as big as Hiscox, in terms of assets, employees and turnover, but, not profits. Hiscox have made nearly £1billion profit since the credit crunch, whereas duriung the same period Persimmon and Barratt both made a net loss, jointly totalling around £1billion. Yet York Council fall over themselves to give incentives to Hiscox, but continue to make unworkable demands for affordable housing from housebuilders.
Where is the fairness and consistency ?
Malcolm
says...
4:25am Thu 4 Oct 12
Buzz Light-year
says...
7:30am Thu 4 Oct 12
Are you Mr Crabtree in disguise?!!!
Well duh!
Pete the Brickie
says...
8:15am Thu 4 Oct 12
pedalling paul says...
9:58pm Wed 3 Oct 12
It's always tough at the top, as any good Chief Executive will testify. But maybe you've never been there.”
Kersten England and COYC remind me of Jonathan Ross and the BBC, in that it's not so much that they are particularly bad at their jobs but people find the obsene amount of money they are paid for them out of taxes a problem which makes them a target. For half a million a year instead of six Ross would have shrugged off Sachsgate and Mrs England would have a lot less critics for fifty thousand a year instead of treble that.
Oh and believe me Paul it's a lot tougher "at the top" in the private sector, in competition for work, doing it for a fixed price and not knowing whether your client can pay you at the end than it is running an organisation with a captive taxpaxer to fund your mistakes.
Scarlet Pimpernel
says...
1:24pm Thu 4 Oct 12
Malcolm wrote:It is mainly left-wing politicians, and their supporters like Malcolm, who have a problem with developers, because they despise private enterprise making (that dirty word) a PROFIT. They take it out on housebuilders in York by using the planning system as a stick to beat them with, by setting inflated, unworkable affordable housing targets.
If there is anybody who is trusted less than politicians (and former News of the World journalists for that matter), it's property developers and Mr Pimpernel reminds us why by his comments here.
York Council's ruling left-wing elite, are however, inconsistent with their prejudice, as can be seen by their cosy relationships with Oakgate and Harrison, who will both make far bigger profits from their developments in York than housebuilders, thanks to the council.
Sadly, York Council's victimisation of housebuilders also results in hurting York and it's residents; making the housing crisis worse, and depriving York of economic growth.
In York, anyone can see that the council think that offices, hotels, student accommodation, shops and a football stadium are more important than housing.
meme says...
11:38am Wed 3 Oct 12
They have said it would make a profit when sold! Wrong and we all knoew this to be the case
There was no danger of loosing money! Wrtong and we all knew this to be the case
Now its worth less and has effectivly been given away. Note there is no mention of actual price achieved!
Finally I know that they gave other parties minimal notice of its being sold..certainly not enough to make meaningful bids as the decision had been taken to secure Hiscox. Not that it was necessarily wrong to do so but its disingenuous to make it sound like it was marketed openly when it was not. What are york frightened of?
Why not just tell the truth? It was decided the Hiscox jobs at stake were worth more to york than the capital value of the site..Period. What's wrong with making a decison and telling people why it was made and the consequences of that decion? Why try to hide the real truth?
There would be some criticism but at least you would be being honest and showing why this decision was made? Perhaps people would trust you all more if you took a straight approach