LAND is to be sold by Colchester Council to create a small shopping precinct as part of the former Severalls Hospital redevelopment.

About 24 jobs could be created if the scheme gets the go-ahead.

The convenience store and three shops will serve the thousands of homes being built at the ex-hospital site.

Officers have recommended councillors approve the sale of the mixed use site when the borough’s revolving investment fund committee meets on Wednesday.

A council spokesman confirmed the site has been taken off the market and the meeting will determine which of the prospective buyers will purchase the site.

A report prepared for Wednesday’s meeting said part of the income will be spent on affordable housing, while the rest will go into the council’s “revolving investment fund”, which it uses to invest in projects to generate a return to support frontline services.

The report said the council could redevelop the site itself but selling the site now would generate a better return.

No financial details are given in the report.

The Severalls mixed use site comprises 0.7 hectares in Whitmore Drive at the entrance to the Kingswood Heath development site.

The land is owned by the developers of Kingswood Heath but is due to be transferred to the council next year as part of a section 106 agreement - part of the deal to allow the houses to be built.

The agreement does not stipulate a use for the site, but the Severalls Hospital masterplan allocates land for mixed uses including commercial, retail and community uses.

The report said: “The strategic location of land at the entrance to the new community and opposite the primary school and proposed community centre make it ideal for neighbourhood retail units.”

Colchester Council marketed the site in February, receiving nine offers from eight separate parties.

All the offers featured commercial use of the site with some including homes as part of a mixed use scheme.

The development proposal is for a neighbourhood size convenience store and three smaller retail units with flats above. Planning permission would still be needed.

The council report said the scheme would “enhance the diverse retail and leisure mix” of northern Colchester by providing four shops in an area which lacks them.

It adds three smaller shops could be of interest to independent retailers.

There has been no public consultation on the scheme but it would happen as part of the planning approval process.

After a decision was made, an update would be given to Myland Community Council.

Announcing the sale a month ago, marketing material produced by the council said the site was close to Colchester Station, Junction 28 of the A12 and it offered prominent road frontage.

The site would be accessed from Via Urbis Romanae, through Whitmore Drive, but the frontage would be on to Via Urbis Romanae.

The site is being partly used as the residential sales area in conjunction with the neighbouring development and will be available for development in mid 2018.

Marketing material produced by the council said: “Colchester is a hotspot for growth. With £3 billion investment taking place, Colchester is connected, competitive and cool.”

It also noted the site was close to 1,000 planned new homes, 250 of which have already been built.

It added: “This is an opportunity to acquire a prime development site on a major link road and take advantage of Colchester’s ambitious growth.”