Salford closes in on land sale to end legal challenge
The city council has provisionally agreed terms to sell a plot at Ontario Basin to Stama Developments, a deal that could bring an end to litigation between the two parties following a dispute over another site, Place North West understands.
Stama and the city council have been locked in a legal battle since 2019 after the authority rejected the developer’s plans to convert Salford Crescent police station into 117 homes.
Stama had entered into a contract with Salford City Council to acquire the building but the acquisition was scuppered when the plans were rejected.
The developer then took legal action in a bid to recoup cash it had already invested in the project.
Place North West understands that Stama and Salford City Council have since been working together to end the legal action.
A deal for the long-vacant Ontario Basin land, located next to the Premier Inn off The Quays, could provide a solution for all parties.
If agreed, the deal would see two apartment buildings comprising 267 flats delivered on the site, according to a report to Salford’s property and regeneration committee.
Block one would comprise 107 apartments and would be 100% affordable. Stama is reportedly in advanced negotiations with a registered provider for the forwarded funded sale of the completed block.
Block two would be made up of 160 apartments that will be offered for sale on the open market.
Earlier phase one proposals for a 10-storey hotel with 162 bedrooms and a 28-storey residential tower comprising 256 apartments were scaled back due to “significant build cost inflation”.
A potential second phase could feature two more buildings. However, this would be subject to negotiations with Whitbread, which holds a long-leasehold on a neighbouring site.
Indicative phase two proposals could feature an eight-storey hotel with 154 bedrooms and a 12-storey block with 172 apartments.
Salford and Stama declined to comment.