Agenda item
Better Queensway Regeneration Project - Progress Update and Consideration of the Final Proposals (the report will be considered in conjunction with the minutes of the Shareholder Board, 25th June)
- Meeting of Special, Cabinet, Tuesday, 30th June, 2020 2.00 pm (Item 104.)
- View the background to item 104.
Report of Director of Regeneration and Growth to follow
Minutes:
The Cabinet considered a report of the Director of Regeneration and Growth providing an update following the consideration of a report to the Shareholder Board on the 25th June 2020. The Shareholder Board Report specifically considered the submission of the ‘final proposals’ alongside the progress being made in respect of additional affordable housing.
Resolved:
1. That the progress made in relation to the Better Queensway project by Porters Place Southend-on-Sea LLP (the “JV”), as set out in section 4 of the Shareholder Board Report, be noted.
2. That the information provided by the JV, as set out in section 5 and Appendices 1 - 3 of the Shareholder Board report, be approved as the ‘final proposals’ (as provided in the Initial Business Plan agreed in November 2019 “the Business Plan”) prior to submission of the first planning application for the Better Queensway project;
3. That authority be delegated to the Director of Regeneration and Growth in consultation with the Leader to agree any non-material changes to the ‘final proposals’ whereupon any such matters shall be noted for information and reported to the following Shareholder Board.
4. That authority be delegated to the Director of Regeneration and Growth, in consultation with the Leader, to review and assess any further documents that are submitted to the Council by the JV to consider as part of the final proposals process, and to sign off any of these that do not have a material impact on the final proposals appended to the report;
5. That where information in the final proposals is updated from that in the Business Plan, this updated information will supersede the relevant information in the Business Plan and be adopted as a revision to the Business Plan from the date of approval of the submitted report.
6. That authority be delegated to the Executive Director (Finance & Resources) to:
a) Complete the Memorandum of Understanding to be made between the Council, the JV and Swan Housing Association that will document the JV’s commitment to offer the Council a minimum of 100 additional affordable homes for social rent;
b) finalise negotiations and settle the terms of a formal legally binding agreement (the “Agreement”) to capture the principles as set out in the Memorandum of Understanding; and
c) subject to approval of the Agreement by the Council, the JV and Swan Housing Association, to bring a report to the next available Cabinet to approve the completion and entering into of the Agreement.
Other Options
1. Not approving the final proposals would mean that the planning application could not be submitted in July. This would have a negative impact on the expedient delivery of the Project and will add to the whole cost of delivery of the Project that could impact upon any final profit share by the Council and Swan at the end of the Project that the Council would use to reinvest in social housing.
2. Not approving the final proposals could also jeopardise the £15m HIF funding from Homes England which has a deadline for spend in 2023. Therefore delays resulting from not approving the final proposals could result in non-expenditure by the deadline and therefore a gap in project funding.
3. There is also a risk to the goodwill that has been established between the parties if the final proposals having been approved by the JV Board and recommended for approval were not approved by the Council. The final proposals that are subject of this report are a second iteration following the Council not being satisfied with the first set and as advised in this report the current final proposals are a significant improvement. Further delay would negatively impact on the relationship between the parties.
4. While a significant amount of design work and options have been developed in relation to the highway, only the highways design which brings the road up to being level with the surrounding land i.e. at grade (and the underpass filled in) has been assessed as a financially viable option in the bid and ensuing design work. Other options also do not generate the regeneration uplift through the value of place making and therefore the overall Project would potentially not reach the necessary values to make it viable. Nor is it considered that they would achieve the place-making and other non-financial benefits such as reduced severance and improved physical environment.
5. An alternative option could be to cease progression of the work towards the agreement in principle regarding the additional affordable rented homes, thereby retaining the figure at 512. This would have a positive impact for the Council in relation to the Project as it would not have to meet the gap funding however it would not meet the requirement of the Project to maximise affordable homes nor would it remove the need for the Council to deliver more affordable homes in the Borough and further would not support the additional commitments as agreed at Full Council (Minute 737).
Reasons for Recommendations
To progress the Better Queensway Scheme
Note: This is an Executive Function
Referred direct to Place Scrutiny Committee
Cabinet Member: Cllr Gilbert
Supporting documents:
- Porters Place Southend-on-Sea LLP Final Proposals Report to Cabinet, item 104. PDF 77 KB
- Appendix 1 - 20 06 25 - Shareholder Board Minutes, item 104. PDF 61 KB
- Appendix 2 - Porters Place Southend-on-Sea LLP Final Proposals report to Shareholder Board FINAL (1), item 104. PDF 310 KB
- Appendix 1 - LLP Project Director Report FINAL, item 104. PDF 5 MB
- Appendix 2 - Final proposals drawings and images FINAL, item 104. PDF 3 MB
- Appendix 3 - Objectives summary table FINAL, item 104. PDF 155 KB