Decision details

1.1         That approval is given to authorise the Director of Regeneration and Growth to seek investment opportunities to deliver affordable housing provision working in partnership with Black Country Housing Group and Octopus Real Estate.

1.2         That the Director of Regeneration and Growth is authorised to progress a scheme at the former Rolfe St Baths site in partnership with Black Country Housing Group comprising sufficient information to enable the submission of an Initial Business Case for consideration by Octopus Real Estate.

1.3         That, in the event that the Initial Business Case is approved by Octopus Real Estate, the Director of Regeneration and Growth, in consultation with the Cabinet Member for Growth and WMCA and the Director of Law and Governance and Monitoring Officer, is authorised to enter into a formal agreement with Black Country Housing Group to enable them to progress the delivery of the scheme, specifically including the following areas of responsibility:

Black Country Housing Group

·      Obtaining all necessary consents (including planning, network rail consents and other permits/licences deemed necessary) to enable the scheme to proceed;

·      Procurement of contractors;

·      The Construction Contract and its implementation

·      Financial control of the project overall

·      The Development Agreement with Octopus Real Estate

·      Reimbursement of SMBC costs incurred at the Initial Feasibility stage

·      The Management Agreement with Octopus Real Estate

·      Providing SMBC with appropriate nomination rights for future occupants

·      Underwriting of any cost overrun after contingency allowances on a 50/50 basis, subject to a maximum sum.

SMBC

·      Progress the disposal of the Rolfe St Baths site to Octopus Real Estate, subject to further Cabinet approval.

·      Underwriting of any cost overrun after contingency allowances on a 50/50 basis subject to a maximum sum.

·      Obtain 100% nomination rights

1.4         That the Director of Regeneration and Growth is authorised  to progress detailed negotiations on the disposal of the former Rolfe St Baths site, and to present a further report on those negotiations to Cabinet prior to disposal.

1.5         That a sum of £800,000 is allocated from the s106 contributions for Affordable Housing to under-write any potential construction cost overruns, subject to confirmation that a matching amount is provided from Black Country Housing Group.

1.6         That the Director of Regeneration and Growth is authorised to allocate resources from the Regeneration and Growth budget to support the progression of 1.1 – 1.5 above.