Issue - decisions

Housing and Regeneration Pipeline

20/09/2019 - Housing and Development Pipeline Update

The Cabinet considered a report of the Executive Director (Finance and Resources) and the Deputy Chief Executive (People) providing an update on the work underway in looking at the pipeline of housing and development opportunities across the Borough and presenting recommendations setting out the proposed way forward.

 

Recommended:-

 

1.    That the progress of the first phase of housing and development pipeline sites currently in delivery as set out in Section 3.11 of the submitted report, be noted.

 

2.    That the progress on the Acquisitions Programme for Council Housing as set out in Section 3.3 of the report, be noted.

 

3.    That the work undertaken to date on the development land pipeline as set out in Section 3.5 of the report, be noted.

 

4.    That £645,000 be allocated from existing capital reserves held within the General Fund and Housing Revenue Account as appropriate, in the first phase to enable the necessary initial site feasibility, due diligence, survey and high level design work to be commissioned to demonstrate viability (or otherwise) and enable a more detailed assessment of the number of units which could be delivered across the sites and, in relation to those suitable for joint venture opportunities, to establish appropriate objectives and bundling of sites.  Following detailed feasibility, those sites which are proved to be viable will be presented to Cabinet for agreement on the preferred way forward for development in due course.

 

5.    That PSP Southend LLP be invited to undertake the next stage of feasibility (to e2) for sites which the pipeline assessment work has indicated would be suitable for PSP delivery and for the Council to commission valuations for these sites to establish the baseline values.  At this stage PSP will work at their risk. Once these sites have been assessed in detail by PSP Southend LLP, recommendations will be made to Cabinet for the sites to be opted in to the LLP for delivery or for alternative approaches to be considered.

 

6.    That negotiations be carried out to progress to update and re-brand PSP Southend LLP as set out in 3.21 of the submitted report.  In particular so that the board and reporting structure can be aligned with other Council LLPs and companies, reporting in to the Shareholder Board and to delegate the agreement of the detailed arrangements to the Strategic Directors (Finance and Resources and Legal and Democratic Services) in consultation with the Leader of the Council.

 

7.    That it be noted that the proposed amendments to the Ilfracombe Avenue site, specifically that the Library will not be located within the proposed housing development which is proposed to provide a housing-for-rent scheme which will include a planning policy level of affordable housing for rent (capped at Local Housing Allowance levels).  Income from the development will be used to finance the capital borrowing required to complete the necessary condition works at the existing Southchurch Library.

 

Resolved:-

 

8.    That, in principle, the Council is minded to enter into an income strip lease transaction in relation to the proposed residential development at Roots Hall subject to the completion of the relevant due diligence and to ensuring the long-term financial sustainability for the Council.  To note that if a suitable transaction can be agreed, the terms of that transaction will be put to Cabinet for consideration.

 

Reasons for Decision

 

1.    To update Cabinet on progress on the HRA infill sites and acquisition programme.

 

2.    To allocate funding for the next stages of feasibility work on the pipeline of sites.

 

3.    The updating and re-branding of PSP Southend LLP will enable it to report in to the Shareholder Board in line with the other Council companies.

 

4.    Removing the library from the scheme at Ilfracombe Avenue will significantly improve viability and deliverability and enable investment in to the existing library building.

 

5.    To enable officers to progress negotiations in relation to the Roots Hall development proposals.

 

Other Options

 

1.    The Council could opt not to use PSP for further developments although in order to continue the delivery of the range of sites, alternative resourcing considerations would be required.

 

2.    The Council could opt not to pursue negotiations for an income strip lease for the development at Roots Hall.

 

Note: The decisions in 1-7 above constitute a Council Function. The decision in 8 above constitutes an Executive Function.

Eligible for call-in to: Policy and Resources Scrutiny Committee

Cabinet Member: Councillors Gilbert and Woodley


 

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