MIDDLESBROUGH COUNCIL

EXECUTIVE REPORT

Regeneration Department – Major Projects – progress update

Executive Member for Regeneration and Economic Development – Councillor Charles Rooney

Director of Regeneration: Kevin Parkes

Date: 14 April 2011

PURPOSE OF THE REPORT

  1. The purpose of the report is to provide the Executive Member for Regeneration and Economic Development with an update of the progress on the major regeneration projects within Middlesbrough.This report will outline the current status of each scheme andactivity scheduledfor2011/12.
SUMMARY OF RECOMMENDATIONS
  1. It is recommended that the Executive Member for Regeneration and Economic Development notes the progress made on the major regeneration schemesand agrees the future activities for the 2011/12financial year.

IF THIS IS A KEY DECISION WHICH KEY DECISION TEST APPLIES?

It is over the financial threshold (£75,000)
It has a significant impact on 2 or more wards / x
Non Key

DECISION IMPLEMENTATION DEADLINE

  1. For the purposes of the scrutiny call in procedure this report is

Non-urgent / x
Urgent report

If urgent please give full reasons

BACKGROUND AND EXTERNAL CONSULTATION

  1. In spite of the economic downturn and unprecedented pressure on public finances, Middlesbrough continues to take forward a number of major regeneration schemes. Although reduced, there is still a strong and demonstrable appetite for private sector development.The cessation of several key funding programmes will provide further challenges; however, this report outlines considerable progress being made within the town. The projects are:

a)Greater Middlehaven;

b)Older Housing Vision;

c)Grove Hill;

d)Hemlington Grange;

e)Cannon Park/Town Centre West;

f)Cultural Quarter;

g)Acklam Hall;

h)Linthorpe Centre and University; and

i)Accommodating future housing needs.

  1. Appendix A sets out the future actions from the previous Major Projects Update, their status and the reasons behind any delays.

Greater Middlehaven

  1. Since the last report, the Tees Valley Unlimited Delivery Team has been abolished due to budget cuts. This has resulted in the management of the Middlehaven scheme being passed over to the Council. A separate report on this matter is to be presented to the Executive Member for Regeneration and Economic Development.
  1. Middlehaven continues to make significant progress,which is particularly impressive given the wider economic challenges.A snapshot of key developments is set out below:
  1. Temenos – the scheme was completed and officially opened in June 2010;
  1. Boho 2 – In August 2010 Erimus completed the 20 Live Work units on the junction of Bridge Street West and Sussex Street. Occupancy rates have been positive with half of the units being currently let;
  1. Riverside One – construction of CIAC (Community in a Cube), an 80 apartment residential block has begun and will complete in September 2011;
  1. MiddlesbroughCollege– MiddlesbroughCollege has secured planning permission to build a £7m sixth form centre and sports facilities;
  1. Gosford Street – Fabrick Housing Group has expressed an interest to relocate itsnew Headquarters on land adjacent to Gibson House (formally the Cleveland Club). Private sector developers have also approached the Council expressing an interest in the Gosford Street area. In light of these approaches, an OJEU procurement exercise has commenced for a commercial office development on Gosford Street;
  1. Jomast – MBC is in discussions with local developer Jomast Properties to develop their land holding within Queens Square;
  1. MyPlace – a £4.5m refurbishment of the vacant Grade II Listed Customs House into a state of the art youth centre is progressing. The refurbishment is due for completion in Winter 2011;
  1. Regional Growth Fund Bid (RGF) – a £2.5m RGF bid for connectivity improvements, car parking and the acquisition of 12 remaining properties at St Hilda’s has been submitted, with a decision expected in Spring 2011.
  1. Crown House and Zetland Square–Supreme Properties has started a refurbishment of Crown House to provide new office and retail space. The Councilhavealso commenced complementary enhancement of Zetland Square. Both will complete by December 2011.

Future Actions

  1. A review is necessary to identify key actions and responsibilities following the demise of Tees Valley Unlimited Delivery Team. This will inform the allocation of a work programme and ensure that essential work does not lose momentum and schemes continue to progress. This will require a new joint venture agreement for managing disposals in Middlehaven. This will be set in place by June 2011.
  1. A revised masterplan is being prepared for completion during. The masterplan will include consultation and inform a revised delivery framework. Public consultation on the revised plan will commence by June 2011.
  1. The Council is working in partnership to provide a £6m sub-regional rehabilitation centre. The centre will provide specialist, high-quality support for people with braininjuries and complex neurological conditions. A planning application is being prepared for submission in Spring 2011 with an anticipated start on site for Autumn 2011.
  1. Green Lane Capital, owner of the Grade II Listed Gibson House, is converting the building into a prestigious office development, with a start on site planned for Spring 2011.Over £200,000 of gap funding has been recently secured from One North East, in support of the development.
  1. Heads of terms are set to be agreed for the disposal of land to Fabrick for the relocation of their Headquarters, by Spring 2011.
  1. MiddlesbroughCollege are currently agreeing the heads of terms before finalising the purchase of the land bounded by Dock Street, Commercial Street and Gray Street. Following this, development should commence as planning permission has already been granted for a new sixth form centre with sporting facilities.
  1. In line with its completion, the My Space scheme is to implement public realm andlandscape improvements to the strip of land east of Custom House, by Autumn 2011.

OLDER HOUSING VISION

  1. In response to funding pressures, in August 2010 the Executive agreed to take Phase 3 (635 properties) out of the clearance programme. Significant progress has been made decanting the remaining residents and the demolitionof 153 properties has commenced, and will be completed by the end of March 2011.
  1. Phase 3 is now no longer to be cleared and redeveloped.Owner-occupiers have been offered up to £4,000 of improvement grants to enhance their properties. There has been a positive take up by the owners with 144 applications for this grant.
  1. Single Housing Investment Pot (SHIP) and Housing Market Renewal (HMR) funding will cease in March 2011. A Round 1 Regional Growth Fund (RGF) bid for £8mto continue acquisitions in Phase 2A has been submitted.
  1. Following discussions, £2.2m of HCA funds has been recently awarded to fund further Phase 1 acquisition and clearance works.
  1. The Council is refurbishing the residential properties it currently owns in Phase 3, in order to offer them as part of a “Home-swap” scheme with the remaining Phase 1 owners. This will help facilitate the acquisition of the remaining properties in Phase 1 and enable the full clearance of those streets. The first Home-swap property will open shortly as a show-house so that Phase 1 owners can view the property and see if the package will suit their individual requirements.

Future Actions

  1. When the outcome of the RGF bid is known, a report will be taken to Executive setting out the steps to complete the scheme.
  1. Preparatory work is underway, with Endeavour Housing Association, to develop a bid to bring long term vacant homes back into use. The bid to the national Empty Homes fund will focus on those in Gresham as a priority and is part of ongoing work with the HCA.
  1. Similarly, negotiations will progress with residents of Wentworth / Waverley Streetwith regards exchanging some of their Phase 1 Properties with some Council-owned properties in Phase 3.
  1. A report on community buildings is being prepared which aims to provide a more integrated network of community facilities and support service delivery in localities. The findings of this report will inform the future direction of these facilities.

Grove Hill

  1. Continued progress has been demonstrated on the programme of relocations and acquisitions. From the 334 properties proposed for clearance, there are 44 tenants and27 home owners to be relocated. The Council has been acquiring private properties via its Growth Point funding allocation (£792,000).
  1. A funding application has recently been submitted to the Regional Growth Fund for £4.2m. If successful, the RGF monies will assist the Councilto acquire the remaining privately owned properties, decant the remaining tenants and clear the site.

Future Actions

  1. Erimus Housing will continue its relocation programme with the Council supporting wherever possible.
  1. When the outcome of the RGF application is known, a report will be taken to the Executive setting out steps to complete the scheme.Once the funding gap is resolved, Erimus and the developer will be able to sign the development agreement, which will, in turn, enable the planning application to be submitted and a subsequent start on site for the main development.
  1. To complement the physical regeneration of Grove Hill, work is underway to develop a localised regeneration programme which will build on the principles of the Total Place and Community Budgets. RIEP Support funding has been secured corporately, to develop a pilot and action plan to take this work forward.
  1. With respect to the proposed park area, the original scale and cost of the scheme is being reduced and a bid for £150k Environment Agency funding is being developed.
  1. The capital receipt from Erimus’ Roworth Road site has been identified as potential funding to cross-subsidise the clearance of Grove Hill. Pre-planning application discussions will commence with the aim to progress the disposal of this site and release capital for Grove Hill.
  1. Feasibility work into a private sector funded retail development in the existing shopping precinct is to be undertaken.
  1. A report on community buildings will review proposals to consolidate and relocate facilities in the Grove Hill area. This will report to the Executive in June 2011.

Hemlington Grange

  1. Cleveland Police have submitted two planning applications for the relocation of the Headquarters to Hemlington Grange, subject to the disposal of their current Ladgate Lane Headquarters for housing.

Future Actions

  1. The current draft master plan is being reviewed in response to the proposed relocation of the Cleveland Police Authority from their headquarters at Ladgate Lane to Hemlington Grange.This will involve consulting developers on the commercial viability of the revised masterplan, elements of soft market testing and addressing junction arrangements, access, general layout and land use issues. A preferred masterplan is scheduled for Summer 2011.
  1. A disposal strategy is now being developed. The options highlighted, and a proposed way forward, will be presented to the Executive for approval, before going out to market for a private sector developer partner in Summer 2011.

CANNONPARK/TOWN CENTRE WEST

  1. Changes to the Cannon Park Indicative Masterplan have been necessary, with a view to the masterplan being adopted as a Supplementary Planning Document (SPD). The SPD will provide the basis for determining the contributions that the Council would require towards the road infrastructure, public realm, pedestrian linkages and any off-site car parking provision.

Future Actions

  1. Consultation continues with land owners which includes investigating improved connectivity with the town centre, feasibility studies into potential highway solutions and overall improvements in terms of urban design. A preferred option will be put through a six-week statutory consultation period in Summer 2011, with a view to adoption as SPD by Autumn 2011.

CULTURAL QUARTER

  1. Planning approval remains in place to build a new hotel and multi-storey car park on the former Dunning Road Police Station site.
  1. The Town Hall project is on track to submit a Stage 1 application to the Heritage Lottery Fund in November. Architects have been commissioned to identify the vision for the development of the Town Hall and the funding required to deliver the improvements. Completion of this work is scheduled for June 2011 and will be reported to the Executive. The increasingly competitive funding environment may require a more modest redevelopment than first anticipated.

Future Actions

  1. A report will follow the completion of the surveys and plans for the Town Hall redevelopment.

ACKLAM HALL

  1. The proposed development at Acklam Hall comprises new Doctor’s surgeries, other care facilities and executive housing to secure the restoration and long term future of this Grade I listed building and associated parkland.
  1. The project has been slightly delayed for the following main reasons:

a)revision of the scheme by the developer as a result of reduced PCT investment and downsizing of the health facilities; and,

b)discussion between the Council, English Heritage and developers to achieve a scheme that meets the required conservation and design quality standards.

Future Actions

  1. Contracts have been signed between the joint vendors, MiddlesbroughCollege and the Council, to sell the land to the developer; subject to planning permission being secured.
  1. The developer anticipates making a submission for planning application in Spring 2011. This will be subject to Executive consultation.

LINTHORPE CENTRAL AND THE UNIVERSITY

  1. Approval has recently been given to proceed with a combination of projects that will draw on the Council’s £1.1m capital allocation.This will include business support grants, public realm upgrades and a review of parking options. Investment will also include property in LinthorpeVillage to complement traffic safety work currently underway. Works are scheduled to start in Q4 with the majority of expenditure occurring in 2011/12.
  1. The development of retail and student accommodation on the former Kwik Save sitestalled briefly when the builder (Rok) went into administration. An alternative builder is now in place and construction continues.

Future Actions

  1. Work is continuing to prepare detailed schemes in anticipation of additional funding. They include the design and implementation of improved access links to the University; connectivity improvements to the town centre bridge area; de-clutter, sign rationalisation, parking and lighting to enhance the night-time economy; and, improvements to the shop fronts on Linthorpe Road. A package of business support grants will be launched in the new financial year to support this.The retail and student accommodation development on the former Kwik Save site is scheduled for completion in Winter 2011.
  1. The proposed access improvements into the university campus form part of the overall Linthorpe Roaddevelopment in 2011/12.

ACCOMMODATING FUTURE HOUSING NEEDS

  1. A report approved by the Executive ‘Programme of Release of Council Owned Sites’ (19th January 2011) identifies Council owned sites to be released for development. The report considered the mix of sites that are coming to the market to ensure they do not compete with each other andit is anticipated that these sites will be marketed for sale next financial year. This policy shift will inform a review of the Local Development Famework and the Regeneration Development Plan Document (DPD).
  1. Taylor Wimpey continues to progress the developments on the Prissick, KirbyCollege and Longlands sites.Residential developments have also been completed in Middlehaven with the Boho 2 Live Work opportunities and the opening of the new Wellington Street Hostel.
  1. Progress at site 44 – Longridge continues with the developers who expressed an interest in the original OJEU procurement exercise. Short listing and a report to the Executive on the preferred provider is expected in June / July.
  1. Negotiations are progressing to relocate the Cleveland Police Authority Headquarters, from its existing location at Ladgate Lane, to the northwest corner of Hemlington Grange. Planning applications have been submitted for both the new Police headquarters and for residential development at the Ladgate Lane site of approximately 370 units.

Future Actions

  1. Two planning applications have been recently received which propose the development of 110 houses at Rose Cottage Farm, Stainton; and up to 295 dwellings at GreyTowers, Nunthorpe. A decision is anticipated by June.
  1. The HCA has confirmed a £1.14m grant to support the development of 20 apartments for older people, and respite provision for adults with learning difficulties, on the former Levick House site. This is a partnership between Middlesbrough Council, the HCA and the Levick Trust, costing around £5.4 million. It is the first Council house building scheme for several years and is scheduled to start on site by the end of this financial year.
  1. Middlesbrough is working with local Registered Providers to develop a bid to the National Affordable Housing Programme (NAHP). This would involve providing additional affordable housing through the disposal of a number of small Council-owned sites. A report outlining Middlesbrough’s proposal is being prepared for Executive Member approval and is due imminently.
  1. A review has started in to Middlesbrough’s Strategic Land Availability Assessment (SHLAA). The purpose of the review is to identify sites with potential to meet the Borough’s future housing requirements. A report to seek approval to consult on the review will be tabled at the Executive in June 2011.
  1. The introduction of the national New Homes Bonus (NHB) programme, in the new financial year will, reward net gains to the housing stock with funding incentives.

OTHER STRATEGIC PROGRESS MATTERS

  1. Local authorities have until 27th May 2011 to submit their entries as applicants for City Status. Initial consultation with key partners and stakeholders in the town and TeesValley has been developed. A City Status Steering Group has also been established to drive forward the campaign and bid. This is chaired by the Mayor and includes input from key partner organisations such as TeessideUniversity and private businesses.Middlesbrough’s bid was officially launched when the Mayor visited schools on 2 March 2011.
  1. On the South West Ironmasters site,consultants have now been commissioned to complete site investigation works. In parallel, a feasibility study is being undertaken to assess the site’s suitability to base a wind validation centre; linking in with the emerging renewable energies market.
  1. Following a competitive process in winter 2010, two parties have expressed an interest in developing a large casino. A final decision on the preferred submission will be made by the Licensing Committeein Autumn 2011.

OPTION APPRAISAL/RISK ASSESSMENT