Agenda item

To consider the report of the Director of Environment and Neighbourhoods on a proposal to release monies, to dispose of land at nil consideration and to appoint builders to for the provision of 25, two bed properties for the over 55s.

Appendix 1 to the report is designated as exempt under Access to Information Procedure Rule 10.4(3)

The Director of Environment and Neighbourhoods submitted a report outlining a proposal to release monies, dispose of land at nil consideration and appoint builders for the provision of 25 two bed properties for the over 55s.

The report detailed the following options available to progress the development of the sites involved, with option 3 being recommended as the preferred option:

Option 1 - Sell the land at Waterloo on the open market for £500,000 which would deliver 20 open market units and 9 affordable units.  The land at Silver Royd  and Evelyn Place could be sold on the open market for £210,000 which would deliver 17 units and no affordable units as the size of the sites would be below the threshold for affordable housing.  This option would result in a capital receipt of £710,000 and 9 units of affordable housing. However this would rely on an open market sale which would not be likely due to present market conditions, and so would instead, leave all three sites undeveloped for the foreseeable future and no new council properties.

Option 2 - As the Waterloo Site was already in the remit of the Strategic Affordable Housing Partnership Board this could be sold to a Registered Social Landlord (RSL) for a capital receipt of £ £145,000.  Subject to receiving a grant from the Homes and Community Agency (HCA) this could result in 29 affordable units being delivered by an RSL.  The sites at Silver Royd and Evelyn Place being sold on the open market for £210,000 and no affordable housing on those two sites.  This option would result in a capital receipt of £355,000 and 29 units of affordable housing would be delivered via an RSL on the Waterloo Road site.  This would be dependant on a grant being secured from the HCA and would leave the other two sites undeveloped for the foreseeable future and would result in no new council properties.

Option 3 - Sell the land at Waterloo Road for nil consideration to Keepmoat PLC and issue a licence to allow Keepmoat PLC to build on the Councils behalf, at Evelyn Place and Silver Royd.  Use £1,516,424, Section 106 monies to purchase 25 completed units across the 3 sites.  This option would result in no capital receipt for the Council but retained ownership of land at Silver Royd and Evelyn Place and 25 new council properties to be owned by the Council and managed by West North West Homes. This option would also ensure that all three sites were developed, bringing additional work and confidence to these areas. Across the three sites this would equate to 55% new council housing. 

Following consideration of Appendix 1 to the report designated as exempt under Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the meeting it was

RESOLVED –

(a)  That the appointment of Keepmoat PLC to build the new properties on behalf of the Council be authorised.

(b)  That £1,516,424 of Section 106 funding be injected into the Capital Programme.

(c)  That expenditure of £1,516,424 be authorised to acquire 25 x 2 bed properties for the over 55s funded through Section 106 resources.

(d)  That land at Waterloo Road, as detailed within the submitted report, be disposed of at nil consideration.