Agenda item

To consider proposals to to develop land at West End Avenue Smethwick with new council housing for affordable rent, subject to planning permission.

Resolved:-

(1) That approval be given to develop approximately 3002.3 m2 of land at West End Avenue Smethwick with new council housing for affordable rent, subject to planning permission, as shown for identification purposes only at Appendix 1.

(2) That the Director of Finance be authorised to allocate adequate

resources from the Council’s Housing Revenue Account to deliver the scheme and to utilise grant funding offered by Homes England, under the extended Homes England Strategic Partnership 1 Programme 2016 to 2021 to assist with the delivery of the project.

1.3 In connection with 1.1 and 1.2 above, approval be given to authorise the necessary steps for the delivery of the proposed project, including:

a) the Director of Regeneration and Growth in consultation with the

Director of Finance and the Director of Housing be authorised to prepare tendering documentation and subsequently procure, in

accordance with any statutory regulations and the Council’s

Procurement and Financial Regulations;

b) execute any requirements in accordance with the Homes England Delivery Partner Dynamic Purchasing System (DPS) framework including appointing a contractor/contractors to develop, on behalf of the Council, the proposed housing scheme; to enter into or execute under seal any financial agreement in relation to the Homes England grant on terms and conditions to be agreed by the Director of Finance;

c) that any necessary exemptions are made to the Council’s

Procurement and Contract Procedure Rules to enable the course

of action referred to b above to proceed;

d) subject to a, b and c above, the Director – Monitoring Officer be

authorised to enter into or execute under seal any documentation

in relation to award of the contract and/or development/partnership

agreement, Homes England developer status, licence,

undertaking, framework joining agreement, any consents or

applications required for Planning or Highways appertaining to the

delivery of the scheme and any other agreements with the

procured contractor(s) and with the Homes England, as may be

deemed necessary to facilitate development of the site with a

housing scheme as described in below on terms and conditions to

be agreed by the Director of Regeneration and Growth;

e) the Director of Regeneration and Growth in consultation with the

Director of Housing and the Director of Finance be authorised to

accept a tender of up to 10% above the approved estimated costs

as a contingency to mitigate uncertain market conditions and

inflationary cost uplifts.

f) Subject to the practical completion of each property, the Director of Housing be authorised to manage and let the properties built in

accordance with the Council’s housing allocation policy.

g) That the following action points identified within the financial

appraisal of the funding application by Strategic Finance, be

implemented to reduce the risk to the Council:

·      That Cabinet consider the alternatives and are satisfied that the

·      proposal to construct the new build homes will meet the Council’s

·      objectives in the most appropriate manner.

·      That a process is developed to prioritise the development of sites

·      against pre-determined criteria and alternative options for

·      achieving the Council’s housing objectives within each locality.

                  Approval was sought to develop land at West End Avenue, Smethwick with new council housing for affordable rent, subject to planning permission.

                  Reasons for recommendations

The site was located within the West Smethwick area on land off West End Avenue, Smethwick, approximately 1km to the North West of Smethwick town centre.

                  The Council was able to develop this site with circa 11 homes, subject to planning permission, as part of the new strategic approach to provide more and better housing in the borough.

                  Alternative options considered

                  Option A – Dispose of the site on the open market.

                  Option B – Work in partnership with a Registered Provider Partner with the assistance of Homes England to build new affordable home for rent.

                  Option C – Leave the site undeveloped.

Agreed:-

(1)     that approval be given to develop approximately 3002.3 m2 of land at West End Avenue Smethwick with new council housing for affordable rent, subject to planning permission, as shown for identification purposes only at Appendix E as now submitted;

(2)     that the Director of Finance be authorised to allocate adequate resources from the Council’s Housing Revenue Account to deliver the scheme and to utilise grant funding offered by Homes England, under the extended Homes England Strategic Partnership 1 Programme 2016 to 2021 to assist with the delivery of the project;

(3)     that in connection with Resolution (1) and (2) above, approval be given to authorise the necessary steps for the delivery of the proposed project, including:

(a)     the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to prepare tendering documentation and subsequently procure, in accordance with any statutory regulations and the Council’s Procurement and Financial Regulations;

(b)     execute any requirements in accordance with the Homes England Delivery Partner Dynamic Purchasing System (DPS) framework including appointing a contractor(s) to develop, on behalf of the Council, the proposed housing scheme; to enter into or execute under seal any financial agreement in relation to the Homes England grant on terms and conditions to be agreed by the Director of Finance;

(c)     that any necessary exemptions are made to the Council’s Procurement and Contract Procedure Rules to enable the course of action referred to b above to proceed;

(d)     subject to a, b and c above, the Director – Law and Governance and Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract and/or development/partnership agreement, Homes England developer status, licence, undertaking, framework joining agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the scheme and any other agreements with the procured contractor(s) and with the Homes England, as may be deemed necessary to facilitate development of the site with a housing scheme as described in below on terms and conditions to be agreed by the Director of Regeneration and Growth;

(e)     the Director of Regeneration and Growth in consultation with the Director of Housing and the Director of Finance be authorised to accept a tender of up to 10% above the approved estimated costs as a contingency to mitigate uncertain market conditions and inflationary cost uplifts.

(f)      subject to the practical completion of each property, the Director of Housing be authorised to manage and let the properties built in accordance with the Council’s housing allocation policy.

(g)     that the following action points identified within the financial appraisal of the funding application by Strategic Finance, be implemented to reduce the risk to the Council:

·               that Cabinet consider the alternatives and are satisfied that the proposal to construct the new build homes will meet the Council’s objectives in the most appropriate manner.

·               that a process is developed to prioritise the development of sites against pre-determined criteria and alternative options for achieving the Council’s housing objectives within each locality.