Issue - items at meetings - New Homes for Neighbourhoods - Developing new homes on General Fund sites

Extract from the proceeding of the Housing Committee on 12 November 2014 (copy attached) together with a report of the Executive Director for Environment, Development & Housing (copy attached).

That the Committee:

(1)          Note the initial design and viability modelling and agree in principle that each of the following sites is appropriated to the Housing Revenue Account for the development of new housing, subject to Housing and Policy & Resources Committees agreeing a further report detailing the final feasibility and design and associated financial implications:

(i)        Former library site, Whitehawk Road, Whitehawk, Brighton and,

(ii)       Wellsbourne site, Whitehawk Road, Whitehawk, Brighton.

(2)          Agree that the Estate Regeneration team, in conjunction with the council’s Sustainable Futures strategic construction partnership, undertake final feasibility studies, design and development of new housing on sites (i) and (ii).

(3)          Agree to initial feasibility/viability studies, consultation, analysis and research to identify potential wider regeneration opportunities in the vicinity of site (i).

(4)          Approve the transfer of a sum of £1.3M from the HRA to the General Fund for sites (i) and (ii) for best consideration for the land value (as detailed in paragraph 3.8-3.9) as and when the final scheme is approved by Policy & Resources and the land appropriated to the Housing Revenue Account.

(5)          Agree that the Estate Regeneration team explore opportunities and options for the delivery of new housing on the car parking site at 7-9 Frederick Street with a view to seeking agreement to appropriate the land for housing purposes if suitable housing development is su

97.1       The Committee considered a report of the Executive Director for Environment, Development & Housing in relation to New Homes for Neighbourhoods – Development of New Homes on General Fund Land. The report included the findings of two business case studies of potential development sites on General Fund land for the programme, and sought approval for agreement in principle for the transfer of these sites to the HRA and their development for new housing through the Council’s Sustainable Futures strategic construction partnership. The report also requested the transfer of the car parking site at Frederick Street to the HRA.

97.2       Councillor Randall thanked the other Members on the Estates Regeneration Board, and noted that the two sites in Whitehawk had been the largest the Board had considered so far; Councillor Randall thanked the Officers for the work they had undertaken. Similar work was being undertaken by other local authorities, and it was important the Council used all of its land assets to their full potential.

97.3       Councillor Morgan noted that it was important that schemes were well thought through to give assurance to residents on estates. It was also important to ensure that contractors worked to high standards, and that all wards be considered to ensure there was a mix of tenure across the city to include private, affordable and social housing. Councillor Morgan suggested some stronger wording at paragraph 3.23 in the report to ensure more was achieved at the site.

97.4       Councillor Peltzer Dunn welcomed the roundtable approach of the Board with Officers, and noted how Officers had ensured the work stayed focused.

97.5       The Chair put the recommendations to the vote.

97.6       RESOLVED – That the Committee:

(1)   Note the initial design and viability modelling and agree in principle that each of the following sites is appropriated to the Housing Revenue Account for the development of new housing, subject to Housing and Policy & Resources Committees agreeing a further report detailing the final feasibility and design and associated financial implications:

(i)        Former library site, Whitehawk Road, Whitehawk, Brighton and,

(ii)       Wellsbourne site, Whitehawk Road, Whitehawk, Brighton.

(2)       Agree that the Estate Regeneration team, in conjunction with the council’s Sustainable Futures strategic construction partnership, undertake final feasibility studies, design and development of new housing on sites (i) and (ii).

(3)       Agree to initial feasibility/viability studies, consultation, analysis and research to identify potential wider regeneration opportunities in the vicinity of site (i).

(4)       Approve the transfer of a sum of £1.3M from the HRA to the General Fund for sites (i) and (ii) for best consideration for the land value (as detailed in paragraph 3.8-3.9) as and when the final scheme is approved by Policy & Resources and the land appropriated to the Housing Revenue Account.

(5)       Agree that the Estate Regeneration team explore opportunities and options for the delivery of new housing on the car parking site at 7-9 Frederick Street with a view to seeking agreement to appropriate the land for housing purposes if suitable housing development is subsequently agreed by Housing Committee and Policy & Resources Committee.

Report of Executive Director of Environment, Development & Housing (copy attached).

42.1    The Committee considered the report of the Executive Director  Environment, Development and Housing which informed Members that the Estate Regeneration Team had continued to explore opportunities to build much needed new homes on council land and to commission initial feasibility and design studies for sites which have potential for council development.  The report included the findings of two business case studies of potential development sites on General Fund land for the New Homes for Neighbourhoods Estates Regeneration Programme at the former library site, Whitehawk Road, and the Wellsbourne site, Whitehawk Road.  

42.2    The report also discussed the possibility of delivering new housing on the car parking site at 7-9 Frederick Street, Brighton.    The report was presented by the Housing Programme Manager.

42.3    The Housing Programme Manager reminded members that revised recommendations had been circulated before the meeting. 

42.4    Councillor Mears referred to money being moved from the general fund a few years ago.  The new library in Whitehawk had been financed from a grant but there had been a shortfall.  Two pieces of land had been put up for sale.  The old library site and the Greenhouse.  £2.5m had been borrowed from the general fund.  Councillor Mears referred to the financial implications and asked if the £1.3m (money needed to be paid to the general fund) was a contribution towards the money borrowed.   If this was not the case, Councillor Mears asked what happened with regard to the money that had been borrowed and which needed to be repaid to the general fund.

42.5    Councillor Mears stated that she did not see any parking on the old library site and asked how this would be brought forward.

42.6    Councillor Mears was concerned about the financial implications.  She stressed the need to understand the finances and what happened to clear the debt in the general fund.

42.7    The Executive Director  Environment, Development and Housing replied that the General Fund had to achieve best consideration for the site.  He would have to investigate the history of the site and advise Councillor Mears in due course.        

42.8    The Housing Programme Manager referred to paragraph 3.8 in the report which reported that the total capital receipt from both sites was required to be in excess of £1m as this had been identified to help fund part of the construction of the co-location building in a report agreed by the former Cabinet on 14 January  2010.  The money was forward funded from the education capital programme and needed to be repaid.   Meanwhile, there would be car parking on the former library site.  He would inform Councillor Mears of the exact figure following the meeting.  There were a considerable number of spaces. 

42.9    Councillor Meadows questioned whether planning were being too cautious about the design of the schemes.  She stressed the severe need for housing and considered that the blocks at the former library site, and the Wellsbourne site, could have been a couple of storeys higher. 

42.10  Councillor Wilson referred to community engagement and consultation and asked if there had been feedback to date.  The Housing Programme Manager replied that the general feeling was that people want to see housing on those sites.  There was a desire for more affordable housing in the city.

42.11  RESOLVED -  (1)      That the initial design and viability modelling be noted and that it be recommended to Policy & Resources Committee that they agree in principle that each of the following sites is appropriated to the Housing Revenue Account for the development of new housing, subject to Housing and Policy & Resources Committees agreeing a further report detailing the final feasibility and design and associated financial implications:

(i) Former library site, Whitehawk Road, Whitehawk, Brighton and

(ii) Wellsbourne site, Whitehawk Road, Whitehawk, Brighton.

(2) That it is agreed that the Estate Regeneration team, in conjunction with the council’s Sustainable Futures strategic construction partnership, undertake final feasibility studies, design and development of new housing on sites (i) and (ii).

(3) That initial feasibility/viability studies, consultation, analysis and research to identify potential wider regeneration opportunities in the vicinity of site (i) be agreed.

(4) That Policy & Resources is recommended to approve the transfer of a sum of £1.3M from the HRA to the General Fund for sites (i) and (ii) for best consideration for the land value (as detailed in paragraph 3.8-3.9) as and when the final scheme is approved by Policy & Resources.

(5)  That it is agreed that the Estate Regeneration team explore opportunities and options for the delivery of new housing on the car parking site at 7-9 Frederick Street with a view to seeking agreement to appropriate the land for housing purposes if suitable housing development is subsequently agreed by Housing Committee and Policy & resources Committee.