26th November 2008 / AGENDA ITEM 7
PRIVATE HOUSING REGENERATION INITIATIVE - CENTRAL CORRIDOR
1.0 Matter for consideration
1.1 To consider the recommendation from the Executive, comments from the Audit Committee and a current position statement from the Assistant Director Built Environment, regarding the forecasted overspend on the Central Corridor Acquisitions Scheme.
2.0 Recommendation(s)
2.1 To consider the recommendation from the Executive and the comments from the Audit Committee.
2.2 To consider the position statement from the Assistant Director Built Environment and consider whether Executive should be recommended that unless the developer can meet the original terms of the bid, that the site be withdrawn and re marketed when market conditions are more favourable.
3.0 Information
3.1 The Financial Performance Monitoring Report as at Quarter 1, April – June 2008 highlighted the forecasted overspend on the Central Corridor Acquisitions Scheme. The Scheme was forecasted to exceed its scheme budget by over 20%, the permitted threshold in the Council’s Constitution.
3.2 At the meeting of the Executive on 3rd September 2008 the Executive agreed the recommendations as outlined below namely:
1. To approve the disposal of the residential site at Bancroft Park to Newfield Jones on the basis of the winning scheme, without an element of shared ownership.
2. That Council is recommended to consider setting aside provision when it considers the 2009/10 Capital Programme, in the sum of £723,000 to fund the private sector housing regeneration initiative in the Central Corridor.
3.3 The scheme was recommended for referral to Audit Committee for further comment prior to final consideration by Full Council.
3.4 The Audit Committee met on 11th November 2008 to consider the scheme and recommended to Council that they would support Recommendation 2 (as above). The Committee also agreed that should the figure required from the 2009/10 Capital Programme exceed the agreed level of £723,000, that the Executive be recommended to withdraw the site from development at the current time and the scheme halted until market conditions improved.
3.5 It was reported that the developer remained committed to the scheme at that current time despite the worsening market conditions. However, negotiations were ongoing regarding the capital receipt for the site.
4.0 Position Statement
4.1 The Assistant Director Built Environment advises that since the Executive considered the matter in September 2008, the financial climate for housing developments has worsened to a significant degree. ReBlackpool has continued negotiations with the preferred bidder and while these discussions are not finally concluded, it is clear that if the scheme is to progress as the Executive had anticipated, it will require significantly greater subsidy from the Council than originally anticipated. Under these changed circumstances the proposal could not be considered good value for money. Therefore it is proposed that the Executive be recommended that unless the developer can meet the original terms of the bid, that the site be withdrawn and re marketed when market conditions are more favourable.
5.0 Financial considerations
5.1 As stated in the Executive decision notice attached at Appendix 7(a).
6.0 Legal considerations
6.1 Section 233 of The Town and Country Planning Act 1990 permits the Council to dispose of land acquired or appropriated for planning purposes subject to obtaining best consideration.
5.2 The transaction is subject to formalisation through legal conveyance and planning processes and Section 106 considerations. The disposal will be subject to a building agreement to ensure that title is not transferred until the development is completed satisfactorily.
Relevant officer:
John Donnellon, Assistant Director Built Environment
Tel: (01253) 476131, e-mail
Appendices attached:
Appendix 7(a): EX 60/2008 Private Housing Regeneration Initiative – Central Corridor
Background papers:
None
Websites and e-mail links for further information:
None
Glossary:
None