Despite moves by opposition councillors to keep the control of the three in council hands, members of the neighbourhood services committee agreed last week to approve in principle to enter into a lease or management contract.

They will now advertise the caravan parks for lease (or management contract) requesting notes of interest and prepare a select tender list.

A further report will be presented to committee in August 2009 to report on the outcome of the tendering process.

The council currently operates three caravan parks at Forfar (Lochside), Montrose (South Links) and Carnoustie (Woodlands). In addition it leases the Riverview Caravan Park in Monifieth to I.T.C. (Scotland) Ltd.

The three caravan parks were advertised for lease last December through the council's retained external estates consultants Graham & Sibbald. The process allowed external bodies or individuals to bid for one or more sites.

As a result of the lack of standardisation in the tenders, particularly in regard to the use of static caravans, it was not possible for council officers to fully evaluate the information provided. Due to time constraints a decision was taken to allow the parks to be operated by the council for another season.

The 2008/09 draft final accounts confirmed the three caravan parks combined delivered a break even position.

Notably, as part of the initial tendering exercise carried out in early 2009, all bidders that lodged tenders included a rental payment to the council as part of their submissions. Notwithstanding that these previous bids were based on less prescriptive criteria it is anticipated that the lease of these sites would offer a potential revenue financial benefit to Angus Council.

In his report which went before last Thursday's meeting, Ron Ashton, director of neighbourhood services revealed that, due to the current economic environment combined with other priorities faced by the department, neighbourhood services does not have sufficient capital budget to improve the existing facilities.

"As part of the previous tendering exercise it was apparent that certain tenderers were committed to delivering a significant investment as part of a prescribed improvement plan.

"It is however recognised that beyond a commitment to develop the communal infrastructure a substantial element of certain bids related to the provision of static caravans.

"It is anticipated therefore that such an exercise may lead to a capital investment. However the extent of this investment will be subject to any additional criteria laid down as part of a tendering exercise."

He added it was appropriate to re-advertise the caravan parks for lease to maximise income from and receive the benefits of investment in these assets.

Despite opposition warnings that the lease agreement was a "dangerous route" and that they could be creating "ghetto housing estates", Mr Ashton gave assurances that the ownership of these sites would remain with the council so the lease was paramount.

"We can terminate the lease on the basis that they are not adhering to the term of the lease."

Neighbourhood services convener Jim Millar added: "I firmly believe that controls and other levers are very much in place and we need to take a holistic view on what will maximise income in our caravan parks.

"Any problems will result in the caravan park coming back to us."

The report stated that Lochside Caravan Park, which is open for 11 months of the year (closed during February), offers 75 electric hook-up pitches and five tent pitches.

This site shall continue to be used predominantly as a touring site only with a maximum of 20 sites being offered for seasonal use.

It points out a touring caravan is one which is usually transported by the owner to different sites during the year for holiday periods not generally exceeding two or three weeks. This includes motor homes.

A static caravan is one which the owner places on a particular site, where it remains. It is not removed from site when not in use. It is not towed from one place to another for short periods. (This term can be applied to residential caravans, holiday homes, chalets, log cabins etc)

A seasonal pitch is a pitch which is available for hire by an individual caravan owner for the duration of the operating season, at the end of which the caravan must be taken off site.

After the meeting Forfar Councillor Colin Brown welcomed the investment potential for the scheme.

He said: "I am pleased this has come forward. Our caravan sites are in dire need of investment and I think this is a sensible route to allow private investors bring Lochside caravan site back to its former glory.

"I am delighted we have taken the decision that no static caravans will be allowed on this site.

"It is a popular park and it brings investment into the town."