Agenda item

Report of the Executive Director of Economy and Public Protection

The Cabinet Member with the Economy Portfolio introduced the report (previously circulated) of the Executive Director of Economy and Public Protection to seek approval for the use of land at Faverdale East Business Park (partly former known as St Modwen Land) specifically including use of the site to generate Biodiversity Net Gain and Nutrient Neutrality credits but also to investigate the possibility of disposal of part of the land for employment purposes.

The submitted report stated that the site is approximately 35 hectares (shown at appendix 1) and that is it wholly owned by Darlington Borough Council (DBC), comprising land previously in DBC ownership and land purchases from St Modwen in 2020. The land was identified as an existing employment site in the Local Plan and it was always intended it would be used for employment purposes.

The report explained that during discussions with a prospective developer it came to light that nearly 25% of the site is listed as Open Mosaic Habitat which is defined by Natural England as priority habitat. This part of the site is expensive to replace if developed but highly valuable in biodiversity terms.

The report clarified that there has been interest in part of the site for employment purposes and this needs to be investigated to ensure the best value for the Council. Consideration needs to be given as to whether part or all of the site could be used for Biodiversity Net Gain (BNG) and Nutrient Neutrality (NN) Credits.

RESOLVED - It is recommended that Cabinet agrees:

(a)    To approve the use of part of the land to generate Biodiversity Net Gain and Nutrient Neutrality Credits. Primarily for sale on the open market but also for use in Council developments.

(b)   That Officers are authorised to initially register the land labelled Area one (Shown on the plan at APPENDIX 2) with Natural England for the purposes of Biodiversity Net Gain credits and to market the credits.

(c)    That officers investigate the sale of Areas two and three on the plan at Appendix 2 for employment purposes. If the conclusions are that the land will generate a greater income for Biodiversity Net Gain and Nutrient Neutrality credits within two years of this decision that officers are authorised to register with Natural England either Area two or three or both sites

(d)   That the necessary funds are approved from existing budgets and the capital Investment Fund to allow fencing off parcels of land and for the registration of the land with Natural England so that the credits can be marketed.

(e)   That the Council enters into a Conservation Covenant with a registered ‘Responsible Body’ to ensure that the land is maintained in accordance with the Habitat, Management and Monitoring Plan (HMMP).

REASON – The recommendations are supported by the following reasons:

(a)    That the statutory requirement for developments to provide at least 10% in biodiversity net gain has put into question the viability of the site for employment purposes, either due to the lack of developable land or the costs associated with developing the whole of the site.

(b)   There is a financial benefit to the Council if the conclusions are that the site would be better used for environmental credits, with the land registered with Natural England for the sale of credits.

(c)     By registering Area one we can seek the financial benefits at an early stage and by further considering Areas two and three we ensure we get the best value for the Council.

(d)   If the land is registered in phases, the land needs to be physically separated to manage the land.

(e)   To register the land with Natural England there needs to be a Habitat Monitoring and Management Plan in place and a legal agreement to ensure the HMMP is delivered.