Exeter City Council has taken a £400,000 financial hit after sticking to its guns over student accommodation.
Its executive committee has agreed to sell the old Clifton Hill leisure centre site to be turned into affordable homes for older people.
But members heard that the sale price of just under £3.4 million was significantly below the market value for the site of £3.8 million.
Council leader Phil Bialyk (Lab, Exwick) told the meeting: “We could get £3.8million, or even more, if we broke our promise not to build student accommodation.”
The council closed the leisure centre in 2018 and knocked it down in 2022. It originally sold the two-acre site to its in-house housing company Exeter City Living (ECL) for just over £2 million, which was a ‘significant undervalue’ that had to be reported to the government at the time.
It then bought it back last year for around £3 million after the demise of ECL, and it went back on the market last August.
Councillors pledged not to let the land go for purpose-built student accommodation, even if that meant turning its back on the highest offers for it.
Planning permission had already been given for 41 homes in the site, but none of the bidders wanted to take that on, and Preferred Homes came in with a plan for 72 units of affordable rented housing for older people.
The development will have a cafe, meeting rooms and a weekly doctor’s surgery. Homes will be made available to older Exeter residents on the housing register.
Cllr Duncan Wood (Lab, Pinhoe) said: “It’s important that we listened to local communities, heard their reservations and acted accordingly.”
Cllr Marina Asvashin (Lab, Priory) said the location was ‘perfect’ for the proposed development and Cllr Susannah Patrick (Lab, Exwick) said it was an opportunity to see a key site developed.
And Cllr Michael Mitchell (Lib Dem, Duryard and St James) told colleagues: “I don’t think there is anybody who would not support this recommendation.”
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