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The council is preparing to push ahead with plans to sell Patcham Court Farm to the Royal Mail on a 250-year lease for a new delivery office.
The deal would depend on terms being agreed for Brighton and Hove City Council to buy the delivery office in Denmark Villas, Hove, to be used for housing.
The council wants to build more than 100 homes on the site through the joint venture with the Hyde housing association.
The council’s cabinet is due to decide next week whether to go ahead with a deal with the Royal Mail.
Officials and councillors have looked into whether the council should build homes at the Patcham site but a report to the cabinet said that decontamination work would cost too much.
The report said: “Due to the need to clean up land contamination from the old farm use and the need to attenuate water to protect the aquifer, there are considerable development costs linked to the site estimated to add a £3.6 million cost to any scheme.
“These ‘abnormal’ costs mean that a low-density housing scheme (circa 24 units) is not viable because that extra cost is spread between a few homes.”
The council also looked at whether the site might be suitable for park and ride but ruled it out for being too small.
It has no plans to buy the Royal Mail site in North Road, Brighton, which is likely to be much more expensive than the Denmark Villas site.
The North Road site is currently earmarked for commercial use but many regard it as a site where scores of flats could be built above any future shops or other businesses.
The deputy leader of the council Jacob Taylor said: “Cabinet will consider this next week – but I think the Royal Mail proposal is an overwhelmingly good deal for the city.
“It will bring a state-of-the-art low emission facility, with fewer HGV journeys into the centre of town and less pollution.
“As well as making a huge contribution to our net zero ambitions, it will keep 380 jobs in Brighton and Hove and release two old and energy-inefficient sites for new housing.”
Councillor Taylor added: “I completely understand why some Patcham residents raised important concerns through the planning process.
“But I can’t quite understand why some senior opposition politicians objected, given the scheme’s green credentials. At its core, it will help to tackle climate change and the housing crisis.”
The council said: “The 1.57-hectare, council-owned site is located at the northern edge of Patcham on Vale Avenue, close to the A27 junction with the A23.
“The now-derelict farm buildings previously formed part of a wider agricultural holding that was separated from the main farm in 1989-90 as a result of the construction of the A27.
“The site has remained undeveloped for more than 30 years. Various proposals were progressed for the site between 1993 and 2009 but did not complete, most often as a result of economic factors.
“In 2017 the council was approached by Royal Mail, which had been looking for a new site in the city – its existing delivery offices have been struggling with the demands of the modern mail service due to building design and road links, which will only grow.
“In September 2024, an application to build the new delivery office at Patcham Court Farm was approved by councillors on the Planning Committee – the first major redevelopment scheme of the site that has been agreed. Public opinion was considered as part of the consultation process and in making a decision.
“The proposal from Royal Mail would provide a capital receipt of £2.7 million for the council, in addition to other benefits for the city. A Royal Mail delivery office is a key piece of city infrastructure, serving the needs of residents and businesses alike.
“As part of the application, Royal Mail has committed to the removal of HGV movements into the city, thereby easing congestion and reducing emissions.”
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