The Executive Member for Property, Councillor Mrs N.J. Bramhall was pleased to report to the Executive that the report before them was the culmination of a significant amount of work by the Council’s property and the consultancy team on the proposed developments for Marketfield Way, Redhill.
The project had reached a key stage with an acceptable Planning Permission having been obtained and Phase 1 construction tenders received. It was noted that work had also progressed well to secure a number of key pre lets and potential pre sales of the residential aspect of the development.
The Executive noted that the next phases of the scheme included further financial investment into the detailed design of the project, further phase 2 tendering, acquiring of landed interests and responding to other landed interests.
The Executive Member emphasised that following further consultation and review a reassessment of the Options had been undertaken which had resulted in a re-analysis of the Options. The updated information was presented to the Executive in the Part 2 Addendum tabled at the meeting. It was noted that the reason for reconsidering the options was to provide the Council with greater flexibility to cater for changing markets and the economy going forward as this project was anticipated to take several years to bring to fruition and required more flexibility to accommodate different circumstances.
Councillor Mrs Bramhall indicated that the analysis had resulted in proposed changes to the recommendations in the published report. The Executive Member therefore proposed an amendment to Recommendations (ii) and (iv) to read:
(ii) That the Head of Property be authorised, in consultation with the Executive Member for Property, Leader and Deputy Leader of the Council, to progress Stage 3 of the Marketfield Way project, in accordance with the strategy set out in the Executive report dated 26 February 2015 and updates set out in this report, and bring forward the development, retaining the commercial elements and pre selling the residential flats to a private rented sector operator/residential investor or selling/ letting the individual residential units on the open market at completion of the development.
(iv) That the Capital Programme be amended to resource stage 3 of the Marketfield Way project subject to stage 3 (phase two construction tenders) meeting the financial parameters set out in the financial projections provided in Annex 6 and the estimated potential Compulsory Purchase costs set out in the exempt report in Part 2 of this agenda.
To make the revised recommendations easier for the Executive to understand the Executive Member tabled a full set of the revised recommendations that incorporated the above changes.
RECOMMENDED that the Capital Programme be amended to resource stage 3 of the Marketfield Way project subject to stage 3 (phase two construction tenders) meeting the financial parameters set out in the financial projections provided in Annex 6 and the estimated potential Compulsory Purchase costs as set out in the exempt report in Part 2 of the Executive’s agenda.
RESOLVED that:
(i) the completion of Stage 2 of the Marketfield Way project and the confirmation of the scheme’s viability, obtaining of detailed planning consent, and stage 1 building construction tenders be noted;
(ii) the Head of Property be authorised, in consultation with the Executive Member for Property, Leader and Deputy Leader of the Council, to progress Stage 3 of the Marketfield Way project, in accordance with the strategy set out in the Executive report dated 26 February 2015 and updates set out in the report before the Executive, and bring forward the development, retaining the commercial elements and pre selling the residential flats to a private rented sector operator/residential investor or selling/ letting the individual residential units on the open market at completion of the development; (iii) the Marketfield Way project be progressed in accordance with the updated financial parameters set out in the exempt report in Part 2 of this agenda, including further land assembly, appointment of construction consultants, appointment of construction building contractors, placement of contracts to move statutory services on site, and conclusion of pre let arrangements; and (iv) the list of prospective tenants set out in the exempt report in Part 2 of the agenda be noted.
Reasons for decision:
To obtain authority to progress to Stage 3, the appointment of a building construction contractor to progress phase 2 fixed tender and contract pricing, finalising of detail design, whilst at the same time progressing with moving statutory services from the site and preparing the site for the building contract.
Alternative options: The Executive received revised Options for consideration in the Addendum which included selling the site with the benefit of planning consent or to do nothing.
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