Friday 22 January 2010
Glasgow City Council notes new agreement for proposed Custom House Quay development
![Image](http://www.urbanrealm.co.uk/images/cache/news/e0b1d81b24e06202ea590f09769f7579.jpg)
Glasgow City Council’s Executive Committee noted at its meeting on Friday 22 January an update on the position for the proposed development at Custom House Quay on the north bank of the River Clyde.
In 2003 and 2005 the Council approved entering into a development agreement with Clydeside Properties (Glasgow) Ltd to deliver an integrated development of Custom House Quay. The basis for dealing with this developer was that they had taken over the ground lease from the Council of the former Trading Post nightclub. The combination of the interests was seen as the best way of providing a comprehensive development of this important stretch of river frontage.
The length of time taken to bring plans forward has been brought about by a number of circumstances, include obtaining finance; the large development costs principally arising from the rebuilding of the quay wall; and developing proposals which Glasgow City Council regarded as appropriate for this site.
The principal development agreement terms are:-
(a) The land will be initially leased to the developer. The land for each phase will be excised from the lease and sold to the developer as the development phase is complete.
(b) The land value will be based on the residual site value after deduction of development costs including the new quay wall.
(c) The Council will also received a share of any super profit above a defined developer’s profit.