Agenda item

Development of the Burcot Lane Site

Minutes:

The Deputy Chief Executive gave a summary of the report and reminded Members that this had initially been reported back in September 2017.  This report provided an update on the position regarding the funding available together with a detailed options table.  The Cabinet was informed that a positive bid had been made to Homes England, which had been successful with a figure to be agreed, but which was likely to be around £1m.

 

The funding would be spent in preparing the site for housing development and it was imperative that this was carried out as soon as possible.  The suggested plan was for 61 units using modern building methods with a Council owned housing company being set up to manage the site. The proposal included 6 units to be sold on the open market, 18 affordable units for purchase by a housing association and 37 market rent units to be retained and managed by the housing company.

 

It was confirmed that the Funding Agreement would contain a number of conditions which needed to be satisfied before the funding from Homes England could be released.  Details of the financial modelling were provided within the report, together with details of the financial projections and implications.  It was acknowledged that whilst this was a small site it was still important for the local community and would bring the opportunity to build and develop in the future.

 

The recommendations within the report would allow Cabinet to build the momentum and be clear about the way forward and the outcome of the of the bid, which would lead to a full business case in respect of the housing company being brought back to Cabinet for consideration in due course.

 

Following presentation of the report, Members discussed the following areas in more detail:

 

·         It was a positive starting point and would help to support the needs of residents in the future, whilst providing some much needed income for the Council.

·         Councillor L. Mallett, as Chairman of the Overview and Scrutiny Board, reiterated the concerns which had been raised at its meeting in respect of future opportunities and whether any had been identified.  He suggested that a much longer term plan needed to be in place before a decision could be made.

·         It was difficult for Members to be able to judge whether it was the right thing to do in the long term, without more detailed information.

·         Whether other sites had been identified

·         Whether this development could realistically have an impact on the housing needs of the district.

·         Councillor K, Taylor, Portfolio Holder for Planning and Strategic Housing advised that this was in fact the beginning of a journey and it was hoped that it would provide an opportunity to provide accommodation at a “fair” rent for local residents. 

·         The business case for the housing company would provide more detail, together with long term future plans.

·         In respect of the suggested preferred model, Members were assured that following discussions with Homes England they were comfortable with this.

·         It was questioned whether the funding from Homes England was dependent on a “pipeline” of sites as opposed to a single site, which the Council appeared to have at the moment.  It was confirmed that this was not the case.

·         The financial pressures faced by the Council and whether the addition of a housing company would simple increase those pressures.

·         Whether any other sites which would be considered in the future could impact on plans in respect of highways and how this might be addressed.  It was suggested that any such sites may need to be included within the current review of planning policies.

·         Members were reassured that no other sites had as yet been considered.

·         The reintroduction of a Housing Revenue Account (HRA) which had previously been rejected.

·         The need for transparency for residents to be able to understand the rationale behind the decision.

·         Officers confirmed that legislatively the Council was required to set up the housing company before taking the next steps in the project and therefore it was important to agree the model before being able to move forward to the next stage.

 

Cabinet considered the recommendations from the Overview and Scrutiny Board meeting held on 29th October 2018 and following further discussion it was

 

RESOLVED:

 

a)         that the indicative plans and projected financial outcomes for the development project be approved and that provided the minimum financial projections are maintained, authority be delegated to the Section 151 Officer to agree the final details when these have been signed off by external advisors when appointed, and after consultation with the Group Leaders;

b)         that agreement in principle is given to establishing a Housing Company to manage retained housing stock subject to the business case for the company being brought to Cabinet for approval;

c)         that Officers proceed to implement the pre-development steps on the site, to include planning and building control applications, demolition of the existing building and the appointment of a Project Development Manager;

 

d)         that further work be carried out to explore the options available to the housing company to allow it to act as a letting agent; and

 

e)         that the housing company’s overarching principle be to provide rental accommodation that is affordable for local people.

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