Salford Quays land sale deal may stop legal action against city council

Salford council has agreed in principle to sell a plot of land at The Quays in a deal which could end a multi-million pound legal action. The council and Trafford Park based developers Stama have been locked in litigation for three years since the local authority rejected the company's plans to transform the old Crescent Police Station into smart apartments.

The developer began High Court legal proceedings seeking damages of £6.5m for alleged breach of contract. The Manchester Evening News understands the council has already spent £160,000 in legal fees.

But a deal over an empty plot at Ontario Basin close to the Premier Inn, could be a solution to the dispute. It would see two apartment blocks built on the site. One would be 107 flats and be 100 per cent affordable and Stama are currently in "advanced negotiations" with a registered private landlord for the forwarded sale of the complete block, according to a council report.

READ MORE: Bitter dispute over £18m plans to turn old police station into plush flats heads to the High Court

The second block would comprise 160 flats for sale on the open market. The report reveals that an earlier proposal which included a 162-bed hotel and 28 storey, 256-flat residential block, was scaled back due to "significant build cost inflation effecting the market, particularly in relation to high rise construction."

A potential second phase of development on the land could feature an eight-storey hotel with 154 bedrooms and a 12-storey block with 172 apartments. The land is owned by the council with part held by a third party on a long lease.

In a notice of decision published by the council, Deputy City Mayor, Councillor John Merry, delegated authority to senior council officers "to