Agenda item

To approve the allocation of the site at Vicarage Road, Oldbury for the development of new affordable rent council housing, subject to planning permission being obtained.

Agreed-

(1)     That approval be given to allocate the site at Vicarage Road, Oldbury for the development of new affordable rent council housing, subject to planning permission being obtained.

(2)     That approval be given to allocate funding from the Council’s Housing Revenue Account to demolish the existing buildings/structures at Vicarage Road, Oldbury as a pre-requisite for site investigation to facilitate compliance with the Homes England funding timescales.

(3)     That in connection with (1) above, 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 any relevant Homes England Strategic Partnerships, to assist with the delivery of the project.

(4)     That subject to receiving the necessary Strategic Investment Unit appraisal approval mark of 65 or above, 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 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.

(5)     That subject to 1.3 and 1.4 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 on terms and conditions to be agreed by the Director of Regeneration and Growth.

(6)     That the Director of Regeneration and Growth in consultation with the Director of Finance and subject to confirmation of the funding rules applicable, to submit an application for funding to the WMCA and any other relevant funding sources and, in the event the funding bid is successful, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to accept the funding and execute under seal any financial agreement in relation to the WMCA and any other relevant funding sources grant on terms and conditions to be agreed by the Director of Finance.

(7)     That following practical completion of each property at the site of Vicarage Road, Oldbury, the Director of Housing be authorised to manage and let the properties built in accordance with the Council’s housing allocation policy.

(8)     That the Director of Finance be authorised to make any necessary adjustment required to appropriate the site at Vicarage Road, Oldbury, for housing purposes

(9)     That the Director of Regeneration and Growth in consultation with the Director of Housing and Director of Finance be authorised to amend funding sources available from the balance of 1-4-1 replacement receipts or Homes England to ensure the most appropriate use of funding for the scheme to ensure expenditure of Homes England funding within the contracted timescales and ensure the use of the time limited receipts generated from the sale of properties within the specified time periods.

Approval was sought to authorise the allocation of the site at Vicarage Road, Oldbury for the development of new affordable rent council housing, subject to planning permission being obtained.

The Cabinet Member for Regeneration and Growth moved the following amendments to the recommendation:

That the Director Regeneration and Growth in consultation with the Director of Housing and Director of Finance be authorised to amend funding sources available from the balance of 1-4-1 replacement receipts or Homes England to ensure the most appropriate use of funding for the scheme to ensure expenditure of Homes England funding within the contracted timescales and ensure the use of the time limited receipts generated from the sale of properties within the specified time periods.

The Vice Chair of the Economy, Skills, Transport and Environment Scrutiny Board, on behalf of the Chair of the Budget and Corporate Scrutiny Management Board, sought clarification on what consultation had taken place with ward members from the affected wards.

The Cabinet Member for Regeneration and Growth highlighted that at a meeting of Cabinet on 31 January 2018, a decision was taken to close Langley Swimming Centre once leisure provision was transferred to the Sandwell Aquatic Centre.  Therefore, local ward members were aware that this site would become vacant and requiring a review to its future use.  The proposal to look at a scheme for council housing for this site, and the proposals for the Smethwick Swimming Centre which would also become vacant, were outlined to Langley and Abbey Ward Members at the end of February 2023 by the Director for Regeneration and Growth.  At that time, members were asked to raise any concerns or issues they may have although no major concerns were received for this site.

                  Reasons for decision

Following the Cabinet decision made on 31 January 2018 (Minute No. 18/18 refers) Langley Swimming Centre was due to close in summer 2023 when the leisure provision would be located at the new Sandwell Aquatics Centre, Smethwick. Following the opening of the new Aquatics Centre the Council had the opportunity to develop the site at Vicarage Road, Oldbury with circa 27 homes (subject to planning consent), as part of the new strategic approach to provide more and better housing in the borough.

Alternative options considered

Option 1 – Disposal of the site on the open market

The Council could have disposed of the site on the open market. This would have resulted in the loss of a Council asset that could have been used for the Council build programme. The Council would have had minimal control over the future use of the building. This option increased the risk of ASB should the building become vacant.

Option 2 – Clear the site and disposal on the open market

Clearing the site and disposal of the site on the open market would have reduced ASB issues but as identified in Option 1, would result in the loss of a Council asset that could be used for the Council build programme.

Resolved:-

(1)          that approval be given to allocate the site at Vicarage Road, Oldbury for the development of new affordable rent council housing, subject to planning permission being obtained;

(2)          that approval be given to allocate funding from the Council’s Housing Revenue Account to demolish the existing buildings/structures at Vicarage Road, Oldbury as a pre-requisite for site investigation to facilitate compliance with the Homes England funding timescales;

(3)          that in connection with Resolution (1) above, 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 any relevant Homes England Strategic Partnerships, to assist with the delivery of the project;

(4)          that subject to receiving the necessary Strategic Investment Unit appraisal approval mark of 65 or above, 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 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;

(5)          that subject to Resolution (3) and (4) 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 on terms and conditions to be agreed by the Director of Regeneration and Growth;

(6)          that the Director of Regeneration and Growth in consultation with the Director of Finance and subject to confirmation of the funding rules applicable, to submit an application for funding to the West Midlands Combined Authority (WMCA) and any other relevant funding sources and, in the event the funding bid is successful, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to accept the funding and execute under seal any financial agreement in relation to the WMCA and any other relevant funding sources grant on terms and conditions to be agreed by the Director of Finance;

(7)          that following practical completion of each property at the site of Vicarage Road, Oldbury, the Director of Housing be authorised to manage and let the properties built in accordance with the Council’s housing allocation policy;

(8)          that the Director of Finance be authorised to make any necessary adjustment required to appropriate the site at Vicarage Road, Oldbury, for housing purposes;

(9)          that the Director Regeneration and Growth in consultation with the Director of Housing and Director of Finance be authorised to amend funding sources available from the balance of 1-4-1 replacement receipts or Homes England to ensure the most appropriate use of funding for the scheme to ensure expenditure of Homes England funding within the contracted timescales and ensure the use of the time limited receipts generated from the sale of properties within the specified time periods.