Agenda item

Bold Street Housing Regeneration

(Cabinet Member with Special Responsibility Councillor Hanson)

Report of the Chief Officer (Regeneration & Planning)

Minutes:

(Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Chief Officer (Regeneration & Planning) to consider the options for making further progress on the unfinished Bold Street housing regeneration scheme in the West End. The report considered the opportunities to make positive progress and the financial implications for the Council.

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

	Option 1: Do Nothing	Option 2:Seek capital growth to achieve cleared site through adding the project to the capital programme.
Advantages	No further acquisition costs.	Aims to achieve positive (cleared site) outcome in the medium to long-term. Allows for the greatest range of housing tenures as final redevelopment of site can be marketed for private, social or council housing. Supports completed regeneration of surrounding properties.
Disadvantages	Negates any benefit arising from investment made to date in site. Ongoing revenue liability for rates, dilapidations, security, insurance etc. Poor condition properties and vacant site continue to detract from regeneration investment on surrounding streets.	Uncertainty/delays in the acquisition of the privately owned properties lead to ongoing revenue liability for rates, dilapidations, security and insurance. Ongoing poor condition of properties and vacant lots continue to detract from regeneration investment on surrounding streets. There is also uncertainty over the future receipt of the cleared site. Requires an increase in either the need to borrow or the use of reserves to finance the project, which may have an impact on other future priorities (see Financial Implications).
Risks	Ongoing and increasing management costs and staff resources from properties in poor condition that will dilapidate further. Complaints from remaining private owners due to change in project, possibly leading to claims. Adverse impacts likely to be caused resulting in negative regeneration effect. Open ended risk as no telling when sufficient external funding will be secured.	Ongoing and increasing management costs and staff resources from properties in poor condition that will dilapidate further. Subject to Council approval as part of budget process. Delays and other factors may result in increased capital costs of acquisition, demolition and site reinstatement – there are risks attached to gaining possession of the whole site.

Option 1 ‘Do nothing’ is discounted for the reasons set out in the table and because:

· Members have to date given consistent policy and financial support for continued positive intervention in Bold Street.

· There is a lack of a viable exit strategy in a ‘do nothing’ option: there is unlikely to be a buyer for the properties in their current condition and they are not suitable for refurbishment, so the council cannot easily withdraw from its interest in the site.

· There are increasing issues with vandalism and anti-social behaviour in and around the properties.

· There are ongoing revenue costs associated with these properties such as council tax and security and dilapidations.

Option 2 is the officer preferred option and is based around the potential for the Council to apply its own finances to the issue, through the budget process. This allows consideration of relative priorities and affordability, and is therefore the preferred option. Officers advise that greater certainty of outcome can only be achieved by adding the total costs to deliver a cleared site for housing development to the capital programme.

Councillor Hanson proposed, seconded by Councillor Leytham:-

“That the recommendations, as set out the in report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1) That Cabinet includes capital growth of £391K within its proposed General Fund Capital Programme, in order to fund further property acquisitions, demolition and temporary re-surfacing on Bold Street, to deliver a cleared site for marketing.

(2) That subject to capital funding approval, Officers are authorised to conduct a new preferred developer tender exercise to test all private and Registered Social Landlord interest in the site, with the outcome being reported to Cabinet for decision.

Officers responsible for effecting the decision:

Chief Officer (Regeneration & Planning)

Chief Officer (Resources)

Reasons for making the decision:

Regenerating the West End of Morecambe is a long-standing corporate priority, subject to funding being identified, and is central to the Council’s health and well being and economic growth aspirations as set out in the Corporate Plan and Local Development Framework. There is an immediate and pressing need for further positive action on Bold Street. Adding this project to the Capital Programme enables further progress to be made.

Supporting documents: