Issue - meetings

The purpose of this report is to seek formal approval to enter into a legal agreements with the developer for the acquisition of the land and delivery of 12 new homes in Catteshall Lane, Godalming.

Members already considered and approved the business cases for and delivery of these homes and full project budget at a meeting of Full Council on 13 December 2022. However, due to the time delay in securing the planning consent for the development the developer has sought an additional sum to reflect build cost inflation and market conditions since the Council expressed an interest in this opportunity. Due to this an additional budget is required to ensure that the contingency is in place when we enter into legal agreement for the land and build of the 12 new homes. The scheme remains financially viable.

Recommendation to Overview and Scrutiny Committee (Resources)

It is recommended that the Overview and Scrutiny Committee;                  

-        Considers the report and information within the exempt annexes and the recommendations (2.2 (i-v) set out in the report; and

-        Resolves whether to make any recommendations to the Executive.

55.1     The Housing Services Manager introduced the report, noting that it was updated after approval at December 2022 Council, and that planning approval is still awaited. It was clarified that the uplift request is counter to build cost inflation that occurred after the expression of interest.

55.2     The Chair stated that he felt that a 9.7% increase in one year is very high. The Housing Services Manager noted that the expression of interest was over 12 months ago. The report to Council on 13 December 2022 included some financial contingency, though since then inflation has equalled 10.6% when checked against government build cost inflation figures, so this benchmarked to ensure that it is appropriate.

55.3     Cllr Hyman expressed concern about agreeing a project in principle without assessment of mitigation to potential environmental harm from development. He reiterated that the authority must demonstrate how mitigation will be effective for development to be lawful.

The Committee resolved to note the report and recommendations.