Consideration was given to the report of the Executive Director that set out the background and options for the Council’s landholding at Blackfriars, Battle.  The site, which measured approximately 16 hectares (40 acres), had been identified in the Council’s local planning documents and Corporate Plan as a site for residential development for some years.  The Council owned just over 50% of the land with the remaining comprising three areas in separate private ownership.

The Council’s Planning Core Strategy (2014) identified a need for 475-500 new homes to be delivered in Battle over the plan period until 2028, assuming that a proportion of these homes would be delivered on the Blackfriars site.  Complex ground conditions and costly infrastructure issues had stalled development of the site.

In February 2018, the Council was provisionally awarded £3.24m Housing Infrastructure Funding (HIF) grant from Homes England (HE).  The HIF grant was integral to progressing the site.  In December 2018, the Council received formal confirmation of the grant, which was subject to specific conditions.  Many of the conditions were unacceptable and were likely to further stall development.  Following further dialogue, HE had provided an alternative offer which stated that any surplus made over an agreed developer’s profit margin must be recovered by the Council.  This money would be ring-fenced and used to facilitate additional housing development within the district.  These conditions were now acceptable and highlighted in HE’s offer at Appendix 2 to the report.  It was therefore recommended that the Council accepted the grant funding award.

To progress planning permission for the new road infrastructure, a masterplanning exercise had been undertaken including site investigation, surveys, utilities and service enquires.  This had allowed the Council to outline its regeneration ambitions and development priorities including the provision of affordable housing etc.  Members were advised that a planning application had been submitted and awaited determination. 

Part of the HIF grant stipulated that all landowners sign-up to a collaboration agreement, committing to joint working to utilise the new road infrastructure for unlocking their sites.  Alternatively, the Council could seek to acquire these parcels of land to ensure delivery.  Discussions with landowners were ongoing. The site owned by Rother had capacity of delivering 120 to 130 homes, or a larger scheme up to 220 homes should additional land be acquisitioned.  This would make a significant contribution towards the Council’s strategic housing requirement for the district.

The report outlined two options for delivery including details of the benefits and risks, as follows:

·        Option One: Joint Venture (JV) with development partner, likely to be a Registered Provider (RP).

·        Option Two: Direct delivery through the procurement by the Council of a main Contractor and professional team with delivery via Design and Build (D&B) Contract.

It was recommended that the Council pursue the first option as it was considered the safest, mitigated concerns regarding project funding and risk, as well as allowed partnership opportunities with an established RP.  Legal advice would be sought to establish whether a public procurement exercise was required.

A lengthy discussion ensued on the advantages, disadvantages, risks and rewards of the Council pursuing both options.  Mixed views were expressed and during the discussion the following salient points were noted:

·        Should Option 1 be agreed, it would be extremely important that the Council retained 50/50 control with the RP to develop the site and that clear aims and objectives were established.

·        Planning permission not being granted was considered a significant risk.

·        Rejecting the HIF funding would stall development.

·        Option 2 provided an innovative opportunity for the Council to take control build high quality houses/flats for the district.

·        Residents would expect the Council to take an active role in progressing/developing the site.

·        A suggestion was proposed that the Council sold individual plots for self-build development/opportunities.

·        The Council currently did not have the capacity, expertise or resources to develop this size of project without the assistance of a development partner.  In future, it was felt that consideration should be given to the Council bringing forward development of smaller projects.  Options would be explored by the Overview and Scrutiny Committee, as part of their Work Programme for 2019/20.

·        Important that affordable and social housing was delivered, including a mixture of shared rented / ownership properties.

·        High quality design standards were considered imperative and that consideration be given to the emerging High Weald Design Guide.

·        Officers were congratulated on securing the £3.24m HIF funding.

Cabinet agreed that the HIF grant be accepted and that a JV model with an RP be developed but that further information on the joint venture’s Terms of Reference, aims, objectives and design standards be referred back to Cabinet before appointing a partner.  The Executive Director agreed that a detailed report would be presented to a future Cabinet meeting. 

RECOMMENDED: That development of a Joint Venture model with a Registered Provider to deliver residential units be approved, subject to agreement of the Terms of Reference, aims, objectives and design standards be referred back to Cabinet before appointing a partner.

AND

*RESOLVED: That the funding offer from Homes England as attached at Appendix 2 to the report be accepted.

*The RESOLVED parts of this minute are subject to the call-in procedure under Rule 16 of the Overview and Scrutiny Procedure Rules.