Issue - meetings

Chatsworth Gardens - Outcome of Developer Competition and Consideration of Private Sector Led Proposal

 

 

Meeting: 05/11/2013 - Cabinet (Item 50)

50 Chatsworth Gardens - Outcome of Developer Competition and Consideration of the Private Sector Led Proposal pdf icon PDF 189 KB

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Report of Chief Officer (Regeneration & Planning) - (Appendix 2 to follow)

Additional documents:

Minutes:

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Cabinet received a report from the Chief Officer (Regeneration & Planning) to consider the outcome of the recent developer competition for Chatsworth Gardens, the PlaceFirst proposal and the draft heads of terms for a detailed agreement.  The options for the way forward were compared, including the previously agreed council-led scheme to deliver refurbished homes for sale.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

 

Option 1: Implement previously approved city council led scheme for refurbishment of council owned properties on Chatsworth Gardens to deliver homes for sale

Option 2: Secure an agreement with PlaceFirst for refurbishment of council owned properties on Chatsworth Gardens to deliver homes for market rent (Preferred Option)

A

D

V

A

N

T

A

G

E

S

Provides a positive and quality solution to the desired Chatsworth Gardens regeneration objectives / outcomes.

Utilises existing Clusters of Empty Homes Funding (CEHF).

Brings empty homes back into use.

Clearly sets out council’s commitment to local residents and owners in the area.

Demonstrates delivery to HCA (Homes and Communities Agency) boosting chances for future funding.

 

Provides all advantages of Option 1 with a number of additional benefits:

Funding model and tenure allows greater capital investment/value to be generated out of almost double the individual housing unit outcome.

Current appraisal, even with high level of sensitivity applied, appears to give a greater certainty on the extent of intervention. At the current assessment all the council’s empty properties on Chatsworth Gardens are refurbished (in 2 phases) and a surplus is generated on the initial public grant investment which can be recycled back into the project or further housing/regeneration investment.

In terms of architectural approach the scheme provides a greater impact – moves the project more towards ‘exemplar’ features originally envisaged in West End Masterplan.

Developer has specialism in, and seeks to deliver, higher environmental standards.   

Developer has commitment to, and a commercial interest in good long term management of the development and improving the wider area and context for their investment. Place First see themselves as a potential council partner on future projects/developments.

 “Open book” accounting allows council to accurately assess reasonableness of the developer’s costs, returns etc.

Transfers construction and delivery risk to private sector. Moves from sales risk to a relatively less risky rental model.

More control over and greater amount of private sector investment to enable draw down of all CEHF.

 

D

I

S

A

D

V

A

N

T

A

G

E

S

Ideally requires co-operation from owner occupiers & landlords to implement facelift element and deliver a cohesive scheme

Uncertainty of delivery outcome for Regent Road and extent of progress is subject to the achievement of projected sales values

Misses out on potential to transfer development risk away from the council.

Tenure model of sales to owner occupiers is high risk in current market and location, even with the new Government Help to Buy scheme.

Ongoing  ...  view the full minutes text for item 50