Agenda item - New Homes for Neighbourhoods - Brooke Mead Extra Care Housing Development Update

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

(1)            That it be noted that the final contract costs for the Brooke Mead Extra Care Housing scheme are within the approved £12m budget.

(2)            That the risks associated with this project are noted.

14.1    The Committee considered the report of the Executive Director Environment, Development and Housing which updated Members on the development of the Brooke Mead Extra Care Housing scheme.  A report was approved at Policy & Resources Committee in February which agreed to increase the scheme capital programme budget, in order to cover a rise in costs primarily associated with build cost inflation forecasts, to a maximum of £12m.  Members gave their formal approval for this increase in the capital programme budget. The Council entered into a contract for the construction of the building with Willmott Dixon Housing Ltd in May 2015 and the scheme was due to start on site before the end of June.

14.2    Councillor Atkinson praised the development and stressed that it would allow older people to remain at home.  There was need for more of this type of housing.

14.3    Councillor Mears supported the project but expressed concern that the report was being submitted to Housing & New Homes Committee after having been submitted to Policy & Resources Committee.  She was concerned about at the funding of the development and reminded Members that Housing Committee in November 2013 had recommended that Policy & Resources Committee approve a capital programme budget up to a maximum of £8.3m for the delivery of the Brooke Mead project funded through unsupported borrowing in the housing revenue account, HCA Grant and a contribution from Adult Social Care.  In 2015 the scheme was costing another £4m.  Councillor Mears wanted reassurance that there would not be more reports coming back to the committee stating that the scheme would cost more money.

14.4    The Housing Programme Manager explained that Brooke Mead was a fixed priced project but there were still financial risks for example that there could be contamination on the site once the building is demolished.  The project was starting in a week’s time.

14.5    The Executive Director, Environment, Development & Housing explained that in 2013 the committee were looking at an outline scheme with indicative costs.  Following planning consent the final scheme was costed by cost consultants, it is being delivered by Willmot Dixon.  The scheme had been increased in scale and had  been re-designed as it went through the planning process.    A great effort had been made to be transparent and there had been an update to the Member Board.  Extra Care was very costly and there would be lessons learnt from the scheme.  Officers might look at other schemes in the future.

14.6    Councillor Mears expressed concerns about the traffic plan in place.  The Circus Street scheme would be happening soon and there was great pressure on the Lewes Road.  She wanted to be reassured that the schemes were considered together.   

14.7    The Housing Programme Manager replied that officers were liaising and working together with residents and businesses.  They would be looking at the relationship between projects.   The Project Manager reported that part of the planning process was the requirement for an Environment & Transport Plan.  Officers are working with Circus Street project officers.

14.8    Councillor Gibson supported the scheme but suggested that in terms of costs it might be helpful to have been given estimate scheme costs per metre. He stressed that it would cost more to house the residents in the private sector. 

14.9    Councillor Miller asked about the number of bedrooms per unit.  The Project Manager replied that the units had one bedroom.  There were six wheelchair accessible units. 

14.10  Councillor Miller considered the cost of the units to be high and supported the idea of giving estimate scheme costs per metre.  He stressed that if costs were lower there would be no need for a subsidy. 

14.11  The Housing Programme Manager replied that one of the reasons for the high costs was that almost the whole of the ground floor was not flats.  A workshop could be arranged for members to explain development finance.  The Executive Director agreed that a financial workshop would be helpful.  Officers wanted to be transparent about the process.

14.12  RESOLVED -

(1)  That it be noted that the final contract costs for the Brooke Mead Extra Care Housing scheme are within the approved £12m budget.

(2)  That the risks associated with this project are noted.