To receive a report from the Director of Regeneration and Environment and Director of Finance, Resources and Customer Services providing additional details in support of the update provided on both schemes. (Report No.227A)
(Key Decision – Reference Number 3967)
Please note Report No.225A on the Part 1 agenda also refers
Members are asked to note that the report was approved by Cabinet on 29th April 2015. Council is therefore being asked to note the additional information provided as part of the approval being sought for inclusion of the funding on the Capital Programme.
(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 Stafford seconded the report of the Director of Regeneration and Environment and Director of Finance, Resources and Customer Services (No.227) providing an update on the Alma Estate, including Dujardin Mews, regeneration scheme.
1. The report had been submitted for consideration in conjunction with Report 225A on the Part 1 Agenda. (Min.44 refers) following its approval by Cabinet on 29th April 2015.
2. The progress made in relation to delivery of both the Alma and Dujardin Mews schemes, as detailed within the Part 1 and Part 2 reports. This had included the Council entering into a Development Agreement for the scheme to redevelop the Alma Estate and into a construction contract with a building contractor for Dujardin Mews.
3. The size and complexity of the regeneration schemes, which were now being treated as two separate projects, with Cabinet having agreed a number of changes (subject to approval of the necessary funding by Council) designed to bring forward both developments and delivery of associated Council housing. Key changes requiring additional financial approval had included:
a. the need to increase funding to the developer in relation to the Alma Estate scheme as a result of changes in the phasing, numbers and sizes of housing now being delivered in earlier phases of the scheme and to cover an increase in build costs;
b. an increase in the costs associated with the need to obtain vacant possession of properties on the Alma Estate due to an increase in property prices since the scheme had originally been approved;
c. an increase in project and staffing costs to reflect the increase in size and complexity of the scheme and the inclusion of additional facilities such as Welcome Point within the scheme.
4. Whilst supportive of both schemes, concerns were raised by the Opposition Group in relation to the overall % increase in costs and what they felt to be the limited detail within the report to justify the reasons for these. It was felt these issues supported more general concerns expressed about the oversight and project management arrangements for major schemes of this type and need to ensure that the Housing Board was fully engaged in this process.
5. In response to the concerns highlighted in 4. above members attention was drawn to the fact that the additional costs identified were partly due to be offset through additional capital receipts with the schemes combined currently projecting an improved financial position and the HRA Business Plan remaining affordable. The wider oversight issue raised in relation to the role of the Housing Board had, however, been recognised by the Cabinet Member for Housing & Housing Regeneration with consideration already being given as to how the role of the Board could be developed in this respect.
The recommendations in the report were then put to the vote and agreed as follows:
AGREED
(1) To note progress being made in obtaining vacant possession on the Alma Estate and approve (as recommended by Cabinet) an increase in the budget to the total amount detailed within para 6.1.1 of the report from the HRA to obtain vacant possession of the homes.
(2) To note the increase agreed by Cabinet in number of Council homes included in Phase 1 of the proposed redevelopment of the Alma Estate from 80 to approximately 98, subject to planning, along with the cash flow effect of implementing the change on the HRA Business Plan, as detailed in para 6.1.2 of the report.
(3) To note (as agreed by Cabinet) the cost of constructing the retail element to be included in Phase 1 and Phase 2 of the proposed redevelopment of the Alma Estate, as detailed within para 6.1.3 of the report.
(4) To note the decision by Cabinet to bring forward the development of Phase 1 of the proposed redevelopment of the Alma Estate and authorise an undertaking for the amount detailed at para 6.1.4 of the report, to Countryside to underwrite the costs of demolition.
(5) To approve, as recommended by Cabinet, the increase in budget for payments to the developer and staffing and project costs on the Alma Estate scheme as detailed in para 6.1.5 and 6.1.6 of the report, noting that this increase could be offset by a reduction in the costs of the Dujardin Mews scheme.
(6) To note the progress being made in the construction of new homes on Dujardin Mews and approve (as recommended by Cabinet) an increase in the budget to the total amount, as detailed within para 6.1.9 of the report from the HRA to cover increased build costs and the inclusion of an in-house lift in one of the new homes.
(7) To approve (as recommended by Cabinet) the budget for staffing and project costs on the Dujardin Mews scheme in the amounts detailed in para 6.1.10 of the report, noting that this increase could be offset by a reduction in costs identified elsewhere within the scheme.
(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).
For: 34
Against: 0
Abstentions: 19
Supporting documents: