Agenda item

(The Director of Housing) To consider the attached report (CHB-009-2013/14).

(1)        That the Package Two development feasibility, consisting of the former Council Depot, two garage sites and grassed area previously identified for possible housing development in the Broadway Regeneration Masterplan at Burton Road, Loughton and including the area of land to the south west, as shown on the plan attached to the supplementary agenda to provide a minimum of 31 affordable rented homes, be approved to progress to detailed planning stage and if planning permission is received the invitation of tenders as Year 2 and part of year 3, of the Council’s Housebuilding Programme, subject to the officers first seeking to increase the number of properties that can be provided on the site;

(2)        That it be noted that the estimated capital investment required to deliver a minimum of 31 new affordable rented Council properties in Package Two, is around £5,118,164 including fees and works;

(3)        That an appropriate level of subsidy be set aside for Package Two for the works and fees in order to achieve a pay-back of 30 years as required by the Council’s Development Strategy with a positive Net Present Value (NPV);

(4)        That the Housing Portfolio Holder be authorised to submit the detailed planning application for the Burton Road development site;

(5)        That a report be submitted to the next meeting of the Cabinet Committee regarding options for the funding and programming of this development; and

(6)        That, while noting that the proposed homes at Burton Road, Loughton will be built to Code for Sustainable Homes Level 3 and have been costed on this basis - and not delaying bringing this development to fruition - taking account of the Council’s commitment to energy efficiency as well as East Thames’s wish to set ambitious targets for delivering the Code for Sustainable Homes at higher levels, a report be submitted to a future meeting of the Cabinet Committee considering the option of achieving a higher code level for future developments in the Programme.

The two local ward members had been invited to attend the Cabinet Committee meeting for this item. However, Councillor Ms J Hart gave apologies for the other ward member, Councillor L Girling advising that he was unable to attend due to work commitments.

The Assistant Director of Housing presented a report following undertaking of a feasibility study by East Thames, and their consultants, Pellings, for the redevelopment of the Council’s former depot, garages and amenity land in Burton Road, Loughton.

He advised the Cabinet Committee that at the time of preparing the report, the Director of Housing had been in discussions with a representative of the Bishop of Barking regarding the possibility of land adjacent to the Burton Road development being used to provide a small Church with associated community facilities. In return for this land the Church would provide Church land elsewhere in Loughton for the development of affordable housing.

Members noted that the Director of Housing had recently been advised that, following further discussions between the Anglican Parish of Loughton and the Methodist Church in Loughton (which had a Local Ecumenical Partnership), the Partnership had been unable to agree amongst its membership to such a proposal.  Therefore, this proposal was no longer being pursued.

The Cabinet Committee was advised that since the site that was subject to these discussions was in Burton Road and adjacent to the original Phase 2 proposal being considered, East Thames had been asked to consider a feasibility study to extend the development site to incorporate this additional piece of land. As a result, a potential layout for this additional land and a summary financial appraisal had been circulated to all members of the Cabinet Committee and the ward members in advance of the meeting, which showed that the proposed development of 25 affordable Council dwellings could now be increased to a minimum of 31 affordable Council dwellings.

The Cabinet Committee was advised that in accordance with Section 100B(4)(b) of the Local Government Act 1972, together with paragraphs 6 and 25 of the Council Procedure Rules contained in the Constitution, the permission of the Chairman had been obtained, after prior notice to the Chief Executive, to this urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) being transacted.

Decision:

(1)        That the Package Two development feasibility, consisting of the former Council Depot, two garage sites and grassed area previously identified for possible housing development in the Broadway Regeneration Masterplan at Burton Road, Loughton and including the area of land to the south west, as shown on the plan attached to the supplementary agenda to provide a minimum of 31 affordable rented homes, be approved to progress to detailed planning stage and, if planning permission is received, the invitation of tenders for Year 2 and part of Year 3 of the Council’s Housebuilding Programme, subject to the officers first seeking to increase the number of properties that could be provided on the site;

(2)        That it be noted that the estimated capital investment required to deliver a minimum of 31 new affordable rented Council properties in Package Two, is around £5,118,164 including fees and works;

(3)        That an appropriate level of subsidy be set aside for Package Two for the works and fees in order to achieve a pay-back of 30 years as required by the Council’s Development Strategy with a positive Net Present Value (NPV);

(4)        That the Housing Portfolio Holder be authorised to submit the detailed planning application for the Burton Road development site;

(5)        That a report be submitted to the next meeting of the Cabinet Committee regarding options for the funding and programming of this development; and

(6)        That, while noting that the proposed homes at Burton Road, Loughton will be built to Code for Sustainable Homes Level 3 and have been costed on this basis - and not delaying bringing this development to fruition - taking account of the Council’s commitment to energy efficiency as well as East Thames’s wish to set ambitious targets for delivering the Code for Sustainable Homes at higher levels, a report be submitted to a future meeting of the Cabinet Committee considering the option of achieving a higher code level for future developments in the Programme.

Reasons for Decision:

The Housebuilding Cabinet Committee is required to consider and approve the package of feasibility studies and financial viability reports for each phase of the works, taking account of the views of the local ward members who represent each site, in order for each phase to progress to planning stage and the invitation of tenders.

Other Options Considered and Rejected:

(1)        Not to progress with the schemes and develop alternative sites.

(2)        To amend the property sizes and types.