Decision details

RESOLVED that:

(i)            the Head of Property be authorised in consultation with the

(a)         Head of Finance

(b)         Executive Member for Property and Acquisition; and

(c)          Executive Member for Finance

to  proceed with a re-development of 16 – 46 Cromwell Road, Redhill that achieves a profit less than would be considered commercially viable to enable a financial contribution for off-site affordable housing (as detailed in the Exempt part of the Executive’s agenda) to be made;

(ii)          the Head of Property, in consultation with the Executive Member for Property and Acquisitions, be authorised to market and sell long leasehold interests of the residential flats at 16-46 Cromwell Road, Redhill, of which 50% would be sold on a shared equity basis with the Council retaining a 25% equity share; and,

(iii)         these proposals be noted as replacing those agreed by the Executive in April 2017.

Since initial proposals had been presented to the Executive in April 2017, the indicative profit from the scheme had reduced.  As the Council’s purpose of redeveloping this site was only in part to help the Council to meet its 5 Year Plan aspirations to be financially self sufficient with the primary objective being to support the redevelopment of the site as a priority for providing homes that help address the local housing affordability challenge which was the reason for offering a reduced developer profit to enable a financial contribution to off-site affordable housing. Additionally, the proposal would provide housing for local people on a more affordable basis using the shared equity scheme.

To take a purely commercial approach to the development and seek to achieve a greater profit by selling all residential units on a full market value basis.