Agenda item

To receive the report of the Executive Member for Housing and Benefits.

The Executive Member for Housing and Benefits, Councillor Knight, introduced the report which sought authority to progress the planning and build stages of the Lee Street Development.

Councillor Knight noted that several proposals had historically been undertaken for the site, providing designs for a variety of different construction methods. There had been no appetite to continue with a “structural insulated panels system” (SIPS) design and therefore a revised scheme in a more traditional brick-build design had been proposed. Regardless of the higher construction costs for the scheme, it would have been necessary to request an increase in budget to accommodate the increase to the SIPS build costs, and for professional costs not detailed previously to the Executive.

The Leader of the Council advised that there was an exempt report relating to this item, at item 13. Agenda item 6 was adjourned so the exempt information relating to the item could be considered under item 13.

During the discussion on exempt information, the following issues were considered:

·         The financial appraisal of the scheme

·         The wider benefits of the proposed development

Following consideration of the information at item 13, the Executive returned to item 6 and;

RESOLVED that:

1.    The updated capital scheme forecast including the allocation of a further £234,000 Section 106 funding be accepted and approved.

2.    The Head of Housing be authorised in consultation with the:

·         Head of Finance

·         Head of Legal and Governance

·         Executive Member for Housing & Benefits

·         Executive Member for Finance

·         Executive Member for Investment and Companies

a)    To enter into a contract to build with the recommended contractor (further to a successful outcome at Planning Committee and a compliant tender process), subject to a planning consent being granted and costs falling within the approved capital budget detailed within the exempt report in Part 2 of the agenda.

b)    To appoint and enter into contracts (as required) with any remaining

consultants or suppliers to allow the contract to progress to completion.

3.    The Head of Housing be authorised in consultation with the:

·         Head of Legal & Governance

·         Executive Member for Housing & Benefits

·         Executive Member for Finance

·         Executive Member for Investment and Companies

a)    To enter any Easements, Licences, Covenants or Wayleaves relating to the development.

b)    Complete Party Wall agreements as required on the development

c)    Authorise new leases granted or entered into by the Council on this development.

Reason for decision: The scheme presented to Executive in June 2018 was deferred at Planning Committee in October 2019. Further dialogue between Members and Officers highlighted that an increase to unit sizes to meet National Space Standards, and a more traditional construction approach would be favoured. These amendments have been made and agreement is now sought from Executive to approve the updated scheme budget and a further Section 106 funding allocation of £234,000 in order to see the project through to practical completion and proceed with the development process, subject to planning permission being achieved on the revised design.

Alternative options:

Revert to the previous position of delivering the units via a SIPS system. This was not a recommended option as re-designing the scheme to meet National Space Standards in this built form would have incurred further architectural fees, and the Council would have incurred a further time delay which might have led to additional inflationary costs.

Not proceed with the development. This was not a recommended option as the site was sitting vacant and could have been better utilised for housing purposes. Not proceeding would have incurred reputational damage with the public as well given that this site had been promoted historically.