Agenda item

To receive a report from the Director - Regeneration & Environment & Director of Finance, Resources and Customer Services providing an update on the development of both schemes.         (Report No.225A)

(Key Decision – Reference Number 3967)

Please note Item 1 (Report No.227A) on the Part 2 agenda also refers.

Members are asked to note the report was approved by Cabinet on 29^th April 2015.  Council is only being asked to approve the increase of funding within the Capital Programme to cover the additional costs of the schemes.

RECEIVED the report of the Director of Regeneration and Environment and Director of Finance, Resources and Customer Services (No.225A) providing a programme update on development of the Alma Estate and Dujardin Mews schemes.

NOTED the report had been submitted for consideration in conjunction with Report 227A on the Part 2 Agenda. (Min.39 refers) following its approval by Cabinet on 29^th April 2015.

AGREED to note the following decisions taken by Cabinet on 29^th April 2015, in support of the decision already taken  under the Part 2 agenda (Min.39 refers) regarding the inclusion of funding within the Capital Programme:

(1)       To note in relation to both schemes, that all of the recommendations could be achieved without exceeding the combined budget for the two schemes.

(2)     In relation to the Alma Estate:

(a)       Cabinet had noted the progress being made in obtaining vacant possession on the Alma Estate as detailed in para 3.11 and 3.12 of the report and approved the budget detailed in the part 2 report from the Housing Revenue Account to obtain vacant possession of the homes.

(b)      Cabinet had agreed the proposal at para 3.27 of the report to increase the number of Council homes included in Phase 1 of the proposed redevelopment of the Alma Estate from 80 to approximately 98, subject to planning.

(c)     Cabinet had noted that, based on current predictions of tenants indicating they would like to remain on the Estate, there was a risk that the Council might be required to purchase additional new Council homes. A report to acquire further properties from Countryside would be submitted to Cabinet for approval once numbers and budget requirements had been finalised.

(d)     Cabinet had agreed the proposal at para 3.33 of the report to construct the retail element detailed in the part 2 report for inclusion in Phase 1 and Phase 2 of the proposed redevelopment of the Alma Estate.

(e)     Cabinet had agreed the proposal at para 3.36 of the report to bring forward the development of Phase 1 of the proposed redevelopment of the Alma Estate and authorised the Council to give an undertaking for the amount detailed in the part 2 report to Countryside to underwrite the costs of demolition.

(f)      Cabinet had agreed the proposal at para 3.41 of the report to include homes for older people within the proposed redevelopment of the Alma Estate and to delegate authority to the Director of Regeneration and Environment, acting in consultation with the Director of Finance, Resources and Customer Services, to agree terms for a Deed of Variation to facilitate the inclusion of the extra care homes.

(g)     Cabinet had agreed to delegate authority to the Director of Regeneration and Environment, acting in consultation with the Director of Finance, Resources and Customer Services, to agree whether or not to exercise the Council’s option to purchase the right to receive the ground rental income stream from Countryside on the terms contained in the Development Agreement.

(h)     Cabinet had agreed to delegate authority to the Director of Regeneration and Environment, acting in consultation with the Director of Finance, Resources and Customer Services to agree the terms for the disposal of the right to receive the ground rental income stream on the open market in return for a capital sum.

(i)        Cabinet had agreed (subject to approval by Council) to increases in the budget for the Alma Estate for project and staffing costs and payments to the contractor as detailed in the Part 2 report.

(j)      Cabinet had agreed to delegate authority to the Director of Regeneration and Environment, acting in consultation with the Director of Finance, Resources and Customer Services to agree the terms of such further variations to the Development Agreement as required to implement the development scheme within the development boundary agreed at the December 2014 meeting of Cabinet (Key decision no.4003).

(3)     In relation to the Dujardin Mews scheme:

(a)     Cabinet had noted the progress at para 3.47 of the report being made in the construction of new homes on Dujardin Mews and approved the budget detailed in the Part 2 report  from the Housing Revenue Account to provide for the inclusion of one in-house lift in one of the new homes and for the increase in costs due to on site delays.

(b)     Cabinet had agreed to recommend to the Council an increase in the Capital Programme to cover the extra costs of Alma Estate and Dujardin schemes with the additional costs funded from the receipts detailed in the Part 2 report.

(c)     Cabinet had agreed to delegate authority to the Director of Regeneration and Environment, acting in consultation with the Director of Finance, Resources and Customer Services to agree the terms of such further variations to the building contract as required to implement the above.

(d)     Cabinet had agreed to delegate authority to the Assistant Director Legal and Governance Services to complete such deeds necessary arising from the above recommendations.