Oxford City Council’s sale of 11 New Road building to St Peter’s College faces scrutiny over finances, consultation and student accommodation plans.
The decision by Oxford City Council to sell a city-centre building to St Peter’s College is to be reviewed by the authority’s scrutiny committee after councillors raised concerns about the financial case for the disposal and the level of consultation.
The council’s Cabinet approved the sale of 11 New Road on 16 September. A special meeting of the Scrutiny Committee will consider the decision on Wednesday, 30 September, following a call-in by four Green councillors.
Read more: Oxford City Council plans sale of New Road building for student accommodation
The property, close to the Westgate shopping centre, is currently part of the council’s city-centre investment portfolio. St Peter’s College already leases the second floor, which provides a six-bedroom House in Multiple Occupation.
The college has separately submitted planning application 26/01994/FUL proposing to expand the student accommodation to 24 bedrooms. The plans would convert the first floor, currently occupied by a nail salon, and add accommodation within an enlarged building. The planning application remains undecided.
The proposed sale and planning application are separate decisions. The sale is subject to planning permission being granted for the proposed redevelopment.
Why the sale is being challenged
Councillors Dianne Regisford, Alfie Davis, Ahalya Bala and Sushila Dhall have called for the Cabinet decision to be reconsidered.
Among the concerns recorded in the council’s report is whether the disposal will achieve the intended financial objective of reducing borrowing. The councillors also raised concerns about what they described as inadequate consultation with those affected by the proposed sale.
The council disputes those concerns. Its report says the business case for the disposal considered both the loss of future rental income and the financial benefit of the capital receipt generated by selling the property.
It says the location has become less attractive to retailers, with weakened demand limiting prospects for rental growth and increasing the risk of vacant periods and associated loss of income.
The council also says the property is not community space but forms part of its commercial investment portfolio.
Existing businesses
The issue has attracted attention because three businesses operate from the building.
The council says the disposal will not require the ground-floor commercial tenants to leave. It also says there is no legal requirement for tenants to be notified before a sale is completed.
Campaigners have nevertheless raised concerns about the effect of the disposal on the businesses and have held a protest outside Oxford Town Hall.
A petition opposing the sale has also been circulated, while local reporting has highlighted the disagreement between campaigners and the council over what the disposal means for existing occupiers.
A council cabinet member has described some of the concerns as being based on confusion, arguing that the sale does not mean existing ground-floor businesses will automatically have to leave.
Student accommodation proposal
The proposed purchaser, St Peter’s College, wants to increase the number of student bedrooms at 11 New Road from six to 24.
The planning application proposes eight bedrooms on each of the three floors, alongside shared facilities and communal amenity space. It also includes changes to the building’s frontage and roof.
The planning application was submitted in August and remains under consideration. Public consultation on the application has already taken place, with the council yet to issue a decision.
The proposed redevelopment therefore remains dependent on a separate planning decision, regardless of the Cabinet’s approval of the sale.
Scrutiny meeting
The special Scrutiny Committee meeting will take place at Oxford Town Hall at 6.00pm on Wednesday, 30 September.
The committee will consider the call-in request concerning the sale of 11 New Road. Its consideration comes less than two weeks after the Cabinet approved the disposal.
The outcome will determine whether the Cabinet decision is allowed to proceed following scrutiny or whether further consideration is required.
The planning application for the proposed redevelopment of the building remains a separate matter and will be determined through the council’s planning process.
Reporting contribution by Isabella Harris, Local Democracy Reporter (LDR) for Oxfordshire, covering local politics, council meetings and planning decisions across six councils in the county.
