Issue - meetings

A report from the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services is attached. This seeks approval for the Council to use its powers to appropriate the land required for the Small Housing Sites development for planning purposes. (Key decision – reference number 3780)

(Report No.206)

(8.35 – 8.40 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing) introduced the report of the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.206) seeking approval for the Council to use its powers to appropriate the land required for the Small Housing Sites development for planning purposes.

NOTED

1.               That an addendum to the report had been circulated for Members’ consideration on grounds of urgency, as set out in Minute No.3 above.

2.               That this report marked an important stage in the Council’s plans to bring these 7 sites back into use and provide much needed additional housing in the local area.

3.               In addition to recommending that the land be appropriated for planning purposes, to avoid any undue delay an addendum had been produced to reflect the improved financial terms that had been secured following robust due diligence and examination of the original bids.

4.               That the addendum recommended improved financial terms and sought Council approval for the borrowing to be allocated from within the £100m previously agreed by Council for housing purposes. This approach would enable a prompt start on site, help to secure just under £700k of external funding, provide an asset backed investment that would deliver much needed local housing and longer term gains for the General Fund.

Alternative Options Considered: NOTED the following alternative options which had been considered:

1.              Regarding procurement of land for planning purposes none.

2.              To progress a lease and lease-back option with another third party funder. Public Works Loans Board (PWLB)/European Investment Bank (EIB) borrowing was cheaper than an income strip from other private funders.

DECISION: The Cabinet agreed

1.               that in accordance with section 122 of the Local Government Act 1972 the sites required for the completion of the Small Housing Sites development (set out in appendix one of the report) should be appropriated from their present holding purpose to planning purposes and in particular the purposes of section 237 of the Town and Country Planning Act 1990.

2.               To note that the appointment of the preferred developer would be subject to a separate portfolio decision by the Cabinet Members for Housing and Finance and Property, in accordance with the original Cabinet decision in July 2012.

3.               To note that specific finance and legal comments were included within the main body of the addendum to the report.

4.               To note that a more comprehensive report, regarding the funding detailed in the recommendation to Council below, would be presented to full Council on 2 April 2014.

5.               To establish a separate Special Purchase Vehicle to take a lease of the 57 private rented properties, the details of which would be presented to Cabinet in June 2014.

RECOMMENDED TO COUNCIL an update to the General Fund Capital Programme in 2014-16 to allocate £17.3m from the Investment in Private Rented Sector Homes to the Small Housing Sites project.

Reasons: 1. All the bidders requested that any Development Agreement entered into with the Council included a requirement, as  ...  view the full minutes text for item 9