Decision details

Confirming design team appointments and demolition contract award for Unit 1, Pitwood Park redevelopment scheme

Decision Maker: Strategic Head of Acquisitions

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

Authority was obtained from the Executive to proceed with the redevelopment of the site to deliver a combination of Starter Homes and market housing. A resolution to grant planning permission was obtained at the 5th September planning committee.

The approval of planning permission completes Key Stage 1 of the project as set out in the Executive report and the commencement of Key Stage 2, preparation of construction tenders, requires the following approvals:

‘the Head of Property be authorised in consultation with the Executive Member for Property and Acquisitions to appoint the necessary Consultants for the redevelopment of Unit 1, Pitwood Park to prepare the necessary documentation and to obtain competitive construction tenders, subject to key stage sign off set out in this report’

Further information is available on the exempt download.

Decision:

Confirm the appointments of the necessary consultants to progress the detailed design of the project to enable construction contract tenders to be prepared and issued.

Confirm authority to proceed with awarding the demolition contract.

Reason:
To enable Key stage 2, detailed design of the project, to be progressed and the tender for the main construction contract to be issued.

Alternative options considered:

1. Delay appointment of the professional team until demolition of the site is completed. This is not recommended as it would be more efficient to progress design work on the housing whilst the demolition works are undertaken. The time lost will be time lost against the continued rise of construction cost inflation which may affect project viability.

2. Sell the site with planning permission – This is not recommended as the Council has undertaken to deliver affordable homes for local people and it would be reputationally damaging to withdraw from delivering a key project that the Council has been promoting. Furthermore, the Council is accepting a lower than market profit-margin to deliver the Starter Home component of the scheme which is a requirement of the planning permission. As such any sale would be at a deep discount from market value to reflect this encumbrance, and there would be no guarantee whether through a further application or planning appeal, that the level of Starter Homes that the Council is able to offer would be replicated on this site.

In addition, the opportunity to offer these homes on a more affordable basis to local residents via the Shared Equity model would also be lost as delivering this model is not a requirement of the planning permission.


Contact: John Reed, Head of Property Email: john.reed@reigate-banstead.gov.uk Tel: 01737 276571.

Publication date: 22/11/2018

Date of decision: 24/09/2018

Accompanying Documents: