Issue details

The Mainway project represents a once in a generation opportunity to shape the development of our District in way that fully involves our community.

The significance of this project is the contribution that it potentially makes to the delivery of the Council’s priorities.

This particular report updates Cabinet on progress made on the Mainway Project, highlights some key issues and opportunities, and seeks agreement to allow use of reserves from the Housing Revenue Account to provide fully formed investment options for the Council to consider.

Mainway is a social housing estate comprising 257 properties which, except for a small number of right-to-buy properties (19), is almost wholly in Council ownership.

The estate was built in the 1960s. The expected lifespan of the buildings has been met and structural surveys show that the buildings either require significant refurbishment or rebuilding. The cost of rebuilding is estimated at £37,000,000 which will provide at least an 80-100 year life expectancy. The cost of refurbishment is estimated to be £23.5 million which will provide an extra 25-30 years life.

Much detailed work planning has already taken place and can be found within the appendices of the report. However, in order to seek an investment decision from the Council, further information is needed to provide the necessary financial assessments and due diligence for a project of this scale.

To get to this point, the project now requires further work including- commissioning detailed site investigations, appraising different options for redevelopment, bringing forward a tenant management plan and establishing a detailed business plan (including financing the redevelopment of the site and project plan for delivering it). This business plan will enable the Council to understand its options, their implications for the Council’s budget and agree any onward capital, borrowing and revenue implications.

An extensive consultation exercise has taken place to seek Tenant views through a range of events and other activities, with a clear picture emerging of a desire to retain a cohesive community at the Mainway location, to continue social housing at the location to achieve that, and therefore to support a significant renewal of the housing stock. 70% of the Tenants were in favour of change.

It is recognised that in order to provide certainty to residents, ensure that Council has needed information on which to base such a significant investment decision and maintain the safety of the existing building considerable capacity will be required to maintain the momentum of this project.