Decision details

The East of Otley development scheme was previously awarded Housing Infrastructure Funding (HIF) to support initial design and feasibility as well as supporting scheme viability given the level of infrastructure required to facilitate development.  The scheme viability has been reassessed and the Brownfield Infrastructure and Land (BIL) Fund has been identified as a potentially more suitable funding approach.  A decision is therefore required to withdraw from HIF and to enter into a new agreement with Homes England for BIL funding.  A decision is also required to inject the Council’s land holdings which form part of the development into the Capital Receipt Programme.

Further to Minute No. 140, 12^th February 2020, the Director of City Development submitted a report providing an update on the delivery of the East of Otley Relief Road and housing allocation project. The report set out an alternative funding approach in response to the challenges which have been faced over recent years to support the delivery of the relief road and the delivery of new housing working with Homes England, the Government’s National Housing and Regeneration Agency.

The Executive Member introduced the report providing an overview of the challenges which had been faced in reaching the current position and how, through significant collaboration between the Council and key stakeholders, a position had been reached where there was now an opportunity to take advantage of alternative funding through the Brownfield Infrastructure and Land (BIL) fund. An overview of the benefits arising from this position were highlighted. 

Responding to a Member’s enquiry, it was confirmed that the proposals within the submitted report related to the proposed change in funding streams for the delivery of the project, and that any planning related representations would form part of any due planning processes which would be undertaken at the appropriate time.

Following consideration of Appendices 1 and 2 to the submitted report designated as being exempt from publication under the provisions of Access to Information Procedure Rule 10.4(3), which were considered in private at the conclusion of the public part of the meeting, it was

RESOLVED –

(a)  That the changes to the project’s viability position since 2019, as contained within exempt Appendix 1 to the submitted report, be noted, and that approval be given for the Council to request a mutual withdrawal from the Housing Infrastructure Fund (HIF) Grant Agreement;

(b)  That the positive progress being made with Homes England in relation to the potential for an increase in grant investment through the Brownfield, Infrastructure and Land (BIL) fund, be noted; and that agreement in principle be given to the Council entering into a Grant Funding Agreement with Homes England, with the details of this being delegated to the Director of City Development;

(c)  That it be noted that the recovery mechanism for Council funds expended through the Capital Programme to date will be via the drawdown of BIL Grant, where eligible under the BIL programme and where directly related to Planning costs; and via the Council’s land receipt where related to legal, land, and project co-ordination related expenditure;

(d)  That the injection of the Council land within the East of Otley (EOO) site into the Capital Receipts Programme, be approved, noting the receipt to net off associated Leeds City Council costs of development of the site aligned to the Homes England funding parameter;

(e)  That the progress made relating to the disposal of the Council’s land within the East of Otley allocation, be noted, with the responsibility for the detailed terms of the land transaction being delegated to the Director of City Development.

Member briefings

Executive Member for Economy, Transport and Sustainable Development, the Executive Member for Housing, the Executive Member for Resources, and local ward members.