Appendix 1

ECONOMIC REGENERATION AND TRANSPORT SCRUTINY PANEL -

GRESHAM UPDATE

28 FEBRUARY 2011

ACQUISITION PROGRESS

1.  The Council has already acquired 385 out of the 820 properties in Phases 1 and 2 and a further 24 properties in Phase 3. A breakdown of acquisitions by Phase is given below:

Phase 1: 365 out of 418 properties acquired.

Phase 2a: 10 out of 200 properties acquired.

Phase 2b: 10 out of 202 properties acquired.

DEMOLITION CONTRACT

2.  The preferred contractor, CL Prosser Ltd has been on site since 1st November 2010 and has been clearing properties in the Phase 1 area. The contract sets out the demolition of 153 properties; this schedule will be completed by 31st March 2011.

HOMESWAP SCHEME

3.  The Council currently owns 25 properties located within the Phase 3 area of Gresham. 12 Falkland Street has been chosen from these properties to be refurbished and will soon be available to view as a “show house”. The purpose of this scheme is to provide remaining owners of properties within Phase 1 of the Older Housing Clearance Area, with a package that enables them to purchase a similar property in central Middlesbrough. In addition, owners will have the opportunity to access a non-repayable loan to assist in the improving of the Homeswap property to a decent standard. The scheme offers a maximum package of £35,000 to enable owners to purchase a Homeswap property and to carry out any improvement works agreed. Work on the “show house” will be completed by the end of February and residents who have expressed an interest in the scheme will be invited to visit the property as soon as possible thereafter.

JOMAST REFURBISHMENT SCHEME

4.  Local developer, Jomast Estates, has approached the Council with a proposal to execute a land and property exchange in the Gresham/Middlehaven regeneration area. This would involve the exchange of 29 Jomast properties in Phase 1 and 2 for 61 properties in the Wentworth/Waverley Street area that would be released by the Council, then renovated to a high standard and returned to housing stock through rent or sale. The exchange properties would enable significant progress to be made on land assembly prior to redevelopment. This arrangement will enable positive progress to be made on land assembly, and will satisfy residents’ desire to see properties refurbished. Negotiations are currently on hold until issues regarding the future tenure mix of the properties can be resolved.

HOME IMPROVEMENT GRANTS AND EMPTY HOMES

5.  The Council has offered owner-occupiers in Phase 3, whose homes have been removed from the Gresham clearance programme, the opportunity to apply for grants up to £4,000 (inc VAT). The grants are administered by the Housing Assistance team and allow essential maintenance work to be undertaken.

6.  To date 121 owner-occupiers have contacted the Council and are eligible for the grant. Of these, 20 properties have had works finished, 18 are on site and a further 67 properties have been surveyed.

7.  The Council is also working with Endeavour Housing Association to develop a bid to bring long term empty homes back into use that have remained vacant for more than two years. This bid to the national Empty Homes fund will focus on those in Gresham as a priority and is part of ongoing work with the Homes and Communities Agency to attract investment into Gresham and secure its future.

REGIONAL GROWTH FUND BID

8.  The Government’s spending review scrapped the Housing Market Renewal Fund and Single Housing Investment Pot, the main source of capital funding for Housing Regeneration. The Government has, however, encouraged bids to be made to the Regional Growth Fund to support the progression of Housing Market Renewal schemes.

9.  A bid has therefore been submitted via Tees Valley Unlimited, the Local Enterprise Partnership for £8m. The bid makes reference to the Council’s commitment to invest £8m of its owned capital resources (including £6m from the future sale of the Hemlington Grange site). If approved, the funding will be sufficient to complete the acquisition of Phases 1 and 2a. The outcome of the bid is expected to be known by March 2011 and further bidding rounds will be announced in the near future. The Council is also examining further funding options including its own capital programme and to date the Homes and Communities Agency has agreed to provide the Council with £2.2 million to finish phase 1 of the scheme.

ENVIRONMENTAL IMPROVEMENT

10. The Environment Service has reviewed the current and planned expenditure in Gresham with a view to maximising the environmental impact of the investment plan. The proposed future programme includes:

a)  a 3-year highway maintenance plan;

b)  an extension of the existing residents parking scheme in the south of the area;

c)  a higher grade, lower energy lighting scheme for Parliament Road; and,

d)  improvements to the Linthorpe Road Central area.

Andrew Carr, Housing Regeneration Team Leader

18 February 2011