Issue - meetings

Purpose of this report:

·       Is to provide members with an overview of the proposed new build housing schemes which are in a position to deliver through entry into a build contract with a contractor.

·       Seek member approval to the recommendations made for each project as set out in business cases within Annexe 1 using the financial strategy as set out in the Housing Revenue Account Business Plan Strategic Review Report and Annexes 1-3.

·       Seek member approval of the revised budgets as set out in Annexe 2.

Recommendation

1.     It is recommended that the Council, consider this report and information within the Annexes and approve recommendations as set out in business cases in Annexe 1 of this report and summarised Annexe 2.

·       Annexe 1a - Site C Ockford Ridge, Godalming – members previously approved budgets for the scheme in annual Budget Council Meeting for the delivery of 30 new homes and retrospective approval is sought for transparency of the total scheme cost (full cost not previously reported) supported by the viability assessment and net revenue impact in the business case

·       Annexe 1b - Aarons Hill, Godalming – members approve the delivery of 4 new homes and scheme costs

·       Annexe 1c - Hartsgrove, Chiddingfold – members approve the delivery of 5 new homes and scheme costs

·       Annexe 1d - Pathfield, Chiddingfold – members approve the delivery of 11 new homes and scheme costs

·       Annexe 1e - Queens Mead, Chiddingfold – members approve the delivery of 8 new homes and scheme costs

·       Annexe 1f -Turners Mead, Chiddingfold – members approve the delivery of 2 new homes and scheme costs

·       Annexe 1g - Riverside Court, Farnham – members approve the delivery of 2 new homes and the scheme cost

·       Annexe 1h – Woodside Park, Cattershall Lane – members approve the delivery of 12 new homes and scheme costs

2.     It is recommended that Council approve the budgets for each scheme totalling £21,252,208m as set out in Annexe 2.

64.1     The Mayor noted that there had been a considerable amount of commercially sensitive information provided to Members to support their decision-making. He did not propose to move into exempt session unless absolutely necessary, and asked Members to take care over what they referred to in their speeches.

64.2     The Leader of the Council moved the recommendations, which were duly seconded by Cllr Nick Palmer, Co-Portfolio Holder for Housing (Delivery). The report provided an overview of the Council’s proposed new build affordable housing schemes which were in a position to be delivered through entering into a build contract with a contractor. The business case for each of the eight proposed schemes, delivering a total of 74 new homes, was set out in Exempt Annexe 1, and the budgets were detailed in Annexe 2. An independent value for money review had been carried for each business case and confirmed that the Council was using robust development assumptions.

64.3     Cllr David Munro spoke to commend the proposals and the ambition of the Council in its affordable housing development programme. Cllr Richard Seaborne spoke and noted that in terms of the number of new units delivered, the number of bedrooms and the number of new occupants that would be housed, the Turners Mead, Riverside Court and Aarons Hill projects added relatively little compared to the other projects but would take the same amount of staff time and resources to progress. Given the limited resources available he wondered whether these schemes presented value for money. Cllr Seaborne also noted that the delivery cost per unit of Turners Mead and Aarons Hill were much higher than for other schemes and, when combined with the lack of materiality, he struggled to support these two particular schemes. Cllr Anna James echoed these comments in relation to Turners Mead, which was in her ward.

64.4     Cllr Stephen Mulliner welcomed the report and noted that the actual number of new homes being delivered was 56 as 18 homes had been demolished to enable the Site C development at Ockford Ridge. He echoed concerns about the materiality and value for money of some of the smaller schemes.

64.5     Cllr Palmer responded to Members’ comments and concerns, noting that there was a need to spread new homes across the borough, where there was demand, but smaller schemes would always be more expensive due to the lack of economies of scale. The independent review provided reassurance that the budgets provided value for money in the context. The Leader also noted that the next phase of the development programme was being prepared and would come forward in due course.

64.6     The Mayor moved to a vote, taking all of the sites detailed in Annexe 1 as a block, and it was

RESOLVED

1.         that the recommendations set out in the business cases in Annexe 1 to the report be approved, as follows:

·         Annexe 1a - Site C Ockford Ridge, Godalming – delivery of 30 new homes and total scheme cost (retrospective approval)

·         Annexe  ...  view the full minutes text for item 64

Purpose of this report:

·       Is to provide members with an overview of the proposed new build housing schemes which are in a position to deliver through entry into a build contract with a contractor.

·       Seek member approval to the recommendations made for each project as set out in business cases within Annexe 1 using the financial strategy as set out in the Housing Revenue Account Business Plan Strategic Review Report and Annexes 1-3.

·       Seek member approval of the revised budgets as set out in Annexe 2.

Recommendation

2.1      It is recommended that the Executive, consider this report and information within the Annexes and make the following recommendations to Council as set out in business cases in Annexe 1 of this report and summarised Annexe 2.

·       Annexe 1a - Site C Ockford Ridge, Godalming – members previously approved budgets for the scheme in annual Budget Council Meeting for the delivery of 30 new homes and retrospective approval is sought for transparency of the total scheme cost (full cost not previously reported) supported by the viability assessment and net revenue impact in the business case

·       Annexe 1b - Aarons Hill, Godalming – members approve the delivery of 4 new homes and scheme costs

·       Annexe 1c - Hartsgrove, Chiddingfold – members approve the delivery of 5 new homes and scheme costs

·       Annexe 1d - Pathfield, Chiddingfold – members approve the delivery of 11 new homes and scheme costs

·       Annexe 1e - Queens Mead, Chiddingfold – members approve the delivery of 8 new homes and scheme costs

·       Annexe 1f -Turners Mead, Chiddingfold – members approve the delivery of 2 new homes and scheme costs

·       Annexe 1g - Riverside Court, Farnham – members approve the delivery of 2 new homes and the scheme cost

·       Annexe 1h – Woodside Park, Cattershall Lane – members approve the delivery of 12 new homes and scheme costs

2.2      It is recommended that Executive approve the budgets for each scheme totalling £21,252,208m as set out in Annexe 2.

RESOLVED that the Executive recommends to Council

1.     the following be approved as set out in business cases in Annexe 1 of the report and summarised in Annexe 2:

·       Annexe 1a - Site C Ockford Ridge, Godalming – members previously approved budgets for the scheme in annual Budget Council Meeting for the delivery of 30 new homes and retrospective approval is sought for transparency of the total scheme cost (full cost not previously reported) supported by the viability assessment and net revenue impact in the business case

·       Annexe 1b - Aarons Hill, Godalming – members approve the delivery of 4 new homes and scheme costs

·       Annexe 1c - Hartsgrove, Chiddingfold – members approve the delivery of 5 new homes and scheme costs

·       Annexe 1d - Pathfield, Chiddingfold – members approve the delivery of 11 new homes and scheme costs

·       Annexe 1e - Queens Mead, Chiddingfold – members approve the delivery of 8 new homes and scheme costs

·       Annexe 1f -Turners Mead, Chiddingfold – members approve the delivery of 2 new homes and scheme costs

·       Annexe 1g - Riverside Court, Farnham – members approve the delivery of 2 new homes and the scheme cost

·       Annexe 1h – Woodside Park, Cattershall Lane – members approve the delivery of 12 new homes and scheme costs.

2.     the budgets for each scheme totalling £21,252,208m be approved as set out in Annexe 2.

Reason:

To seek Full Council approval for the development projects described in this report and Annexe 1 a–h as part of the council’s new affordable homes programme financed in compliance with the HRA Business Plan Strategic Review report.

[This is a recommendation to Council and therefore not subject to call-in]

Councillor Palmer, Co-Portfolio Holder for Housing (Delivery) presented the report which set out detailed proposals for a number of new build housing schemes.  A number of assumptions had been made, including that right to buy would reduce the long term assets created by the construction.  All proposals were financially viable and met the Council’s strategic priority to provide affordable homes.

Councillor Mulliner spoke on this item, including the way in which these projects were presented and wondered whether the assumptions were sufficiently cautious.

In response, Councillor Palmer advised that a balance had to be struck between what could realistically be achieved and the reserves which would be retained.  It was felt that the assumptions were appropriate and he welcomed future monitoring of the position.

Councillor Williams welcomed the proposals which would provide genuinely affordable and energy efficient homes for those in need.  The Leader echoed the comments and welcomed the proposals.

RESOLVED that the Executive recommends to Council

1.     the following be approved as set out in business cases in Annexe 1 of the report and summarised in Annexe 2:

·       Annexe 1a - Site C Ockford Ridge, Godalming – members previously approved budgets for the scheme in annual Budget Council Meeting for the delivery of 30 new homes and retrospective approval is sought for transparency of the total scheme cost (full cost not previously reported) supported by the viability assessment and net revenue impact in the business case

·       Annexe 1b - Aarons Hill, Godalming – members approve the delivery of 4 new homes and scheme costs

·       Annexe 1c - Hartsgrove, Chiddingfold – members approve the delivery of 5 new homes and scheme costs

·       Annexe 1d - Pathfield, Chiddingfold – members approve the delivery of 11 new homes and scheme costs

·       Annexe 1e - Queens Mead, Chiddingfold – members approve the delivery of 8 new homes and scheme costs

·       Annexe 1f -Turners Mead, Chiddingfold – members approve the delivery of 2 new homes and scheme costs

·       Annexe 1g - Riverside Court, Farnham – members approve the delivery of 2 new homes and the scheme cost

·       Annexe 1h – Woodside Park, Cattershall Lane – members approve the delivery of 12 new homes and scheme costs.

2.     the budgets for each scheme totalling £21,252,208m be approved as set out in Annexe 2.

Reason:

To seek Full Council approval for the development projects described in this report and Annexe 1 a–h as part of the council’s new affordable homes programme financed in compliance with the HRA Business Plan Strategic Review report.