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A DEVELOPER who wants to bring Waitrose to Basingstoke has launched a scathing attack on the leader of Basingstoke and Deane Borough Council for snubbing a multi-million-pound offer for a controversial site.

Discovery Properties was selected as the reserve bidder when the borough moved to sell off 8.3 acres of land at Gresley Road.

The preferred bidder, Michael Shanley Group, pulled out this month, blaming the hostile reaction to its plans.

Opposition focused on the 448 small flats proposed by the company, which offered £22.5million for the site and wanted to build a hotel, offices and a supermarket.

But instead of turning to London-based Discovery Properties, which was partnered with Waitrose, council leader Councillor John Leek - who said last September that he would "welcome Waitrose with open arms" - indicated the Cabinet would remove the site from the market when it meets tomorrow.

In an exclusive interview, Discovery Properties' director Paul Clark, who has been angered by the move, has now told The Gazette:

• its scheme included Waitrose, Hilton Hotels and high-end Manhattan Loft Corporation apartments
• the firm has prepared an alternative scheme that more than halves the number of apartments to 150
• both Discovery proposals are financially viable and deliverable, despite the market downturn
• the council's actions have damaged Basingstoke's reputation among developers.

He said the council had made a "right mess" of the bidding process, but reserved his worst criticism for Cllr Leek.

Mr Clark said: "He's obviously decided it was in his interests to pull this because of the elections in May. To pull it from the market is an absolute disgrace. He announced he was withdrawing it without any authority."

"We do a lot of work with local authorities and we have never encountered anything like this," added Mr Clark. "It's unprofessional. We are extremely disappointed, as are the likes of Waitrose, Manhattan Loft and the other people who were running with our scheme.

"It's cost everyone involved time and money and the reputation of the council for respecting the law of the land is endangered.

"We have designed the scheme in detail and we spent in the order of £40,000 to £50,000.

"The market hasn't affected our bid. Our bid is sensible and realistic and remains so even in this market. That's what really annoys me."

Discovery Properties' initial bid proposed 358 one, two and three-bedroomed apartments ranging from 550 to 1,200 square feet. A newly-secured commercial partner had allowed the company to devise an alternative scheme which reduced the number of flats to 150, in blocks no taller than four storeys, while remaining financially balanced, said Mr Clark. The alternative scheme did not include Hilton's eight-storey hotel.

Speaking about the alternative plan, Mr Clark said: "It obviously addresses the main concern of the opposition to the proposals." He explained that Manhattan would market the private sale apartments, while Sentinel Housing Association would take care of the 40 per cent affordable provision. Sentinel wants all the affordable housing to be two-bedroomed apartments.

"They know what the demand is," said Mr Clark. "They had requested apartments because there's obviously a shortage of that in Basingstoke for affordable homes.

"All these guys have done market research. Sentinel and Manhattan thought the location was appropriate."

Manhattan aims its residencies at the "top-end of the market" and this tied in with Waitrose's inclusion in the bid, said Mr Clark. He added Discovery Properties had worked successfully with Waitrose before and built its Newbury store.

"It's a partnership and they remain committed to Gresley Road and proceeding with the site as proposed in our scheme," he said. "I know they're looking at other opportunities. They want the right site. Gresley Road was the right site."

Cllr Leek was unavailable for comment. But a report he prepared for tomorrow's meeting noted the flats in the preferred bidder's scheme generated concern and, bearing in mind the reserve bidder's proposal included flats, stated: "It would not be a sensible use of resources to pursue the disposal of this site at the present time."

Cllr Leek acknowledged the reserve bidder had indicated it might be willing to alter its scheme, but he concluded the site should be removed from sale because "high-rise flats remain part of the formal submission".

He added: "The removal of high-rise flats from the reserve bidder's formal submission for the development of this site means that, if this site is to be taken forward now, officers must reassess this whole tendering process, and all bids, against this (or any other) new criterion and advise Cabinet accordingly."

10:20am Monday 25th February 2008

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