Jesmond site sold offfor retirement homes – but could have gone for more

ing to deliver a mix of 91 later living apartments and, with joint venture partners, 18 executive family homes.

Early plans also include restoring the stables on the site to provide 30 additional hotel bedrooms as well as a spa facility.

Coun Gallagher added: “They decided to go ahead with this particular bid and I think it’s a shame. We wanted the land kept for the people.

“They should have kept that whole area for local allotments that people can use.”

Chloe Westley, campaign manager at the TaxPayers’ Alliance, believes people will be ‘disappointed’ the council didn’t sell the land at the highest possible price.

She said: “This is money that could have been spent on essential services. Every penny counts and in future the council should consider being more open to selling land and items at the best possible price.”

A Newcastle City Council spokesperson said: “The land sale followed a traditional tender process which involved sealed bids, allowing suffi- cient time for all interested parties to undertake the necessary due diligence.

“In terms of bids received, this is commercially sensitive information as negotiations are ongoing and subject to contract. Therefore we are unable to comment at this time.

“When disposing of land or property, the council is duty bound under section 123 of the Local Government Act 1972 to obtain best consideration which can reasonably be obtained in all circumstances to meet planning requirements.

“There is no formal appeals procedure as part of this process. However all parties have been offered and received feedback, not all parties took up that offer.”

In February 2015, the council Co-op and industrial units, as well as six houses on Jesmond Road West and the Great North Road in an attempt to claw back money.

The sale – which made the council £3,877,000 – came just weeks after we revealed the authority could make £7m at an earlier auction.