Agenda item

The report of the Executive Manager – Transformation

The Chairman provided a brief outline of the Councils ambition to relocate the depot to a more suitable site, bringing the land at Abbey Road forward for housing development. He continued to explain to the Group what is required from them by way of scrutiny, to ensure the project is delivered as expected. The Chairman highlighted the aspirations of Cabinet and Council for the delivery of a showcase development of new high quality housing that would be an example to other developers in the market of what can be achieved.

The Executive Manager – Transformation delivered a presentation that provided the Group with information on the Cabinet recommendations, the Council’s objectives, design code and the progress to date.

The Executive Manager - Transformation reported the progress made in respect of the Cabinet recommendations on 9 October 2018 as follows:

a)    Agrees that officers undertake the necessary work to submit an outline planning application for housing on the Abbey Road site, accompanied by a design code.

b)    Dependant on an appropriate planning permission for the site being secured, authorises the Deputy Chief Executive to undertake a marketing exercise for the disposal of the site with the benefit of planning permission for housing.

c)    Requests a follow up report with the results of the marketing exercise and detailing any other options for the Council to consider with regards to the future development of the site.

And subsequent Cabinet recommendation on 9 July 2019 as follows:

a)    Authorises the Chief Executive to shortlist the developer bids and undertake appropriate due diligence to arrive at a preferred bidder.

b)    Requests a follow up report providing details of the preferred bid for further consideration with regard to the future development of the site.

The Executive Manager – Transformation continued to advise the Group that Cabinet supported appointing an architect to prepare a housing scheme with focus on high quality design, including 30% affordable housing. In appendices attached to the report the Executive Manager – Transformation  provided the Group with a Masterplan, which included specific design standards and illustrative examples of how the housing may look. These included:

·         Minimum house sizes

·         Building for Life Standards

·         Off road parking and cycle storage

·         Roof top gardens

·         Level access

·         Central open space

·         Non-standard house type, using different elevations styles and materials

The Executive Manager – Transformation informed the Group that these documents formed part of the outline planning application and that planning permission was granted in June 2019. The site was marketed and 17 offers were received, 9 that mostly met the criteria of the Design Code and Masterplan with the highest offers were shortlisted. The shortlisted developers were asked to prepare a second bid based on revised Design Codes to include a list of energy efficiencies, which was provided for the Group to view in a separate appendix with the report. The Executive Manager – Transformation advised that from the 9 shortlisted, 4 developers, who met the additional criteria have been selected for interview and the preferred bidder will be referred to Cabinet for consideration.

The Executive Manager – Transformation explained some of the risks and uncertainties associated with the development of the site, these include:

·         Contamination

·         Control of Design Code and Masterplan

·         Surrender of Waste Transfer License – Environment Agency

·         Land exchange by March 2020 – Land Release funding

The Group were advised that the contamination found is contained, is not a gas or leeching into the waterways and therefore can be controlled. Professional advice is to leave it in situ and cap it with a membrane and clean topsoil.

In respect of the Design Code, legal advice will be sought to ensure that the contract protects the Council’s interests. In addition the chosen bidder will be asked to demonstrate they share the Council’s aspirations for the development. In addition the group were advised that a significant amount of officer time  has been spent to ‘de-risk’ the site, undertaking surveys and designing services and infrastructure to limit the ‘unknowns’ for the developer and, therefore reducing the conditions imposed on the sale.

In concluding the Executive Manager – Transformation advised that following Cabinet approval in November, the shortlisted bidder will be subject to the usual due diligence, and as such there is a risk the sale may not complete. To mitigate this risk, it is intended that the other shortlisted bidders will be kept in reserve.

The Group welcomed the development of the site and were excited to see the ambitious proposals within the Masterplan and Design Code. The Group asked specific questions in relation to the contamination on site and whether the assessments provide adequate mitigation across the whole site. The Executive Manager – Transformation advised that testing for contamination is still ongoing and that there would be various solutions across the site. In addition, the Executive Manager – Transformation referred the group to the illustrative schemes explaining that some of the housing in the Masterplan are designed to incorporate roof gardens instead of standard garden spaces.

The Group asked further questions in relation to the devised Design Code and list of energy efficiencies and construction costs. The Executive Manager – Transformation advised the Group that each bidder had based their offer on the Masterplan and Design Code. It will be for the developer (working with the Council) to choose which solutions they opt for in respect of energy efficiencies, but these will need to reflect the standards laid out in the Design Code. In addition, we would look to control the development and future changes to the properties through the sale contract.

Members of the Group raised their concerns in respect of electric charging points and whether the scheme provide adequate capacity for each dwelling and visitor parking. They also commented on how these would be managed in respect of apartments with multiple occupancy. The Executive Manager – Transformation explained that each property wold be fitted with charging points for up to two vehicles on a trickle charge system, adding that as technology advances it would be upto the homeowner to upgrade in future. In respect of the apartments, the Executive Manager – Transformation advised that there would be a pay as you go system installed.

The Chairman asked if ‘water harvesting’ could be considered as a specification, referring to the illustrative designs and the use of various hard services within the landscaping and the opportunity to harvest the run off rain water. The executive Manger – Transformation offered to look into how this could be incorporated within the scheme.

The Group raised further questions in relation to whether the Council is expected to make a profit from the sale or will there be any income generated from the site in future. The Executive Manager – Transformation explained that financial income and expenditure is to be determined further into the process. 

It was RESOLVED that:

a)    The Group notes the content of the report

b)    The Group endorses the actions taken to meet the recommendations of Cabinet

c)    Subject to ongoing site reports, Officers to investigate harvesting rainwater to be included within the Masterplan

d)    The chosen developers are invited to the Scrutiny Group meeting on 17 March 2020