Agenda item

To approve the appropriation of approximately 4770.3 m2 (0.48 hectares) of land at Garratts Lane, Cradley Heath from the General Fund to the Housing Revenue Account for housing purposes with the accounts being adjusted accordingly and to develop the site with new council housing for affordable rent, subject to planning permission

Agreed:-

(1)     that approval be given to appropriate approximately 4770.3 m2 (0.48 hectares) of land at Garratts Lane, Cradley Heath from the General Fund to the Housing Revenue Account for housing purposes with the accounts being adjusted accordingly and to develop the site with new council housing for affordable rent, subject to planning permission, as shown for identification purposes only at Appendix 1

(2)     that approval be given to acquire the access land, as shown for identification purposes only at Appendix 3 from Green Square Accord on terms and conditions to be agreed by the Director of Regeneration and Growth.

(3)     That approval be given to make a direct award to Green Square Accord (or their subsidiary within the group structure) and an exemption be made to the Council’s Contract Procedure Rules.

(4)     That the Director of Finance be authorised to allocate adequate resources from the Council’s Housing Revenue Account, subject to being satisfied that the proposal provides value for money, 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.

(5)     In connection with 1, 3 and 4 above, approval be given to authorise the necessary steps for the delivery of the proposed project, including:

a) that subject to receiving the necessary Strategic Investment Unit appraisal approval mark of 65 or above for this site, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to accept the Financial closure offer for the construction of Council new build properties, in accordance with any statutory regulations and the Council’s the Director – Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract for the development of this site and/or development/partnership agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the schemes and any other agreements with the procured contractor(s),as may be deemed necessary to facilitate development of the site with housing a scheme on terms and conditions to be agreed and implemented by the Director of Regeneration and Growth;

b) the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to make a direct award to Green Square Accord (or their subsidiary within the group structure) and enter into a Design and Build agreement to develop and deliver a new housing scheme on behalf of the council.

c) 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;

d) 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;

e) 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.

Approval was sought to appropriate land at Garratts Lane, Cradley Heath from the General Fund to the Housing Revenue Account for housing purposes with the accounts being adjusted accordingly and to develop the site with new council housing, subject to planning permission.

Reasons for recommendations

The Council is able to develop this site with circa 20 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

The site would not be suitable for private sector residential development in isolation as the Council’s access to the site is not deemed suitable to serve a housing development and would not obtain planning permission.

This option would also offer nil contribution to the Council’s new build programme.

Option B – Work in partnership with a Registered Provider Partner with the assistance of Homes England to build new affordable homes for rent. The site would not be suitable for residential development in isolation as the Council’s access to the site is not deemed suitable to serve a housing development and would not obtain planning permission.

This option would also offer nil contribution to the Council’s new build programme.

Option C – Leave the site undeveloped.

An option to consider would be not to build out the site and to leave it as it is. There are ongoing maintenance costs to the Council around litter picking and grounds maintenance. These are difficult to quantify as they are carried out as part of larger services, although we anticipate costs would be significantly reduced if the site were developed for housing.

This option would offer nil contribution to the Council’s new build programme and result in an under-utilised Council asset.

Agreed:-

(1)          that approval be given to appropriate approximately 4770.3 m2 (0.48 hectares) of land at Garratts Lane, Cradley Heath from the General Fund to the Housing Revenue Account for housing purposes with the accounts being adjusted accordingly and to develop the site with new council housing for affordable rent, subject to planning permission, as shown for identification purposes only at Appendix 1, as now submitted;

(2)          that approval be given to acquire the access land, as shown for identification purposes only at Appendix 3, as now submitted, from Green Square Accord on terms and conditions to be agreed by the Director of Regeneration and Growth;

(3)          that approval be given to make a direct award to Green Square Accord (or their subsidiary within the group structure) and an exemption be made to the Council’s Contract Procedure Rules;

(4)          that the Director of Finance be authorised to allocate adequate resources from the Council’s Housing Revenue Account, subject to being satisfied that the proposal provides value for money, 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;

(5)          that in connection with Resolution (3) and (4) above, approval be given to authorise the necessary steps for the delivery of the proposed project, including:

a) that subject to receiving the necessary Strategic Investment Unit appraisal approval mark of 65 or above for this site, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to accept the Financial closure offer for the construction of Council new build properties, in accordance with any statutory regulations and the Council’s the Director – Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract for the development of this site and/or development/partnership agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the schemes and any other agreements with the procured contractor(s),as may be deemed necessary to facilitate development of the site with housing a scheme on terms and conditions to be agreed and implemented by the Director of Regeneration and Growth;

b) the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to make a direct award to Green Square Accord (or their subsidiary within the group structure) and enter into a Design and Build agreement to develop and deliver a new housing scheme on behalf of the council.

c) 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;

d) 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;

e) 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.