Small Housing Sites Update
To receive a report from the Executive Director of Regeneration and Environment on the small housing sites. (Report No: 24) (Key Decision reference number: 4298)
Please note that this report should be considered in conjunction with report no 21 on the Part 1 agenda.
Cabinet is due to consider this report on 13 July 2017. If the recommendations in the report are approved, Council will be asked to agree an addition to the Council’s Capital Programme.
The Cabinet decision will be reported to Council on the Council update sheet tabled at the meeting.
(This document contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Schedule 12A to the Local Government Act 1972 as amended).
Minutes:
Councillor Oykener moved and Councillor Lemonides seconded the part 2 report of the Director of Regeneration and Environment updating members on the small housing sites. (Report No: 24)
NOTED
1. That because of the private sector failure the costs had increased and to ensure the financial viability of the project and preserve the numbers of affordable council homes, the properties that were to have been rented privately will now have to be sold according the original scheme.
2. The project had suffered serious problems and because of the cuts to local government it was difficult to provide new council homes. However these problems had now been overcome and the Council would now be able to build 37 new affordable homes (20 to be rented and 17 for shared ownership) and also maintain Enfield Innovations Limited as a going concern.
3. The concerns of the Opposition in relation to the increased costs of the schemes including the extra costs due to weather damage, the limited information provided in the report, and the 18 month delay in taking action to remedy the situation. They felt that the administration had more questions to answer.
Following the debate Council voted to approve the recommendations in the report with the following result:
For: 29
Against: 17
Abstentions: 0
AGREED
1. To note the overall positive financial viability of the project as detailed in Paragraph 6.13 of the part 2 report.
2. To note that Cabinet (13 July 2017) agreed to delegate authority to the Director of Regeneration and Environment and the Director of Finance, Resources and Customer and Services to negotiate a commercial settlement to vary the Development Agreement (DA) and conclude a revised fixed contract sum for partial completion of the Development Agreement to complete 47 homes at the Parsonage Lane, St Georges and Tudor Crescent sites only, to be called Phase 1, at a cost set out in detail in the part 2 report.
3. To note that subject to the revised agreement being entered into with Kier (as per recommendation 2.2) to approve as recommended by Cabinet (13 July 2017) a direct contract award to complete the construction works at the four remaining sites as set out in the part 2 report.
4. To approve, as recommended by Cabinet (13 July 2017) the additional budget required to complete 47 homes (Phase 1), plus the funds to enable completions of the 47 homes in Phase 2.
5. To note that Cabinet (13 July 2017) agreed to delegate authority to the Director Regeneration and Environment, and the Director of Finance, Resources and Customer and Services to renegotiate the terms of the Facility Letter (funding agreement) as set out in the part 2 report.