Saturday, 14 May 2011

Salford council failed to get the best price for land

Salford council failed in its duty when it pressed ahead with a multi-million pound land deal with supermarket giant Tesco, a court heard.

Town hall bosses are accused of failing to seek the best deal for the land, off Pendleton Way, as required under rules set out in the Local Government Act 1972.

Salford Estates, which owns the neighbouring Salford Shopping City complex, has gone to the High Court to call for a judicial review into the sale, and into the council’s decision to grant planning permission.

It was claimed at the court hearing in Manchester that Tesco had been the preferred buyer since 2002, and that the town hall had given no consideration to other options since then.

That was despite council legal advisers warning that ‘competition for good sites in the food sector remain(ed) strong in the north west’, the court heard.

My comment: This isn't the first council to sell assets for less than they are worth and it won't be the last. Cheshire West and Chester Council is another recent example.

Read the full story from the source Manchester Evening News

Read all articles about Salford City Council on this blog

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