Agenda item - Redevelopment Scheme - Marden Close, Chigwell Row

(Housing Portfolio Holder) To consider the attached report (C-021-2009/10).

(1) That, subject to appropriate terms being agreed with the City Parochial Foundation (CPF) and the Secretary of State’s consent, the Council‘s lease for land at Marden Close, Chigwell Row be surrendered;

(2) That competitive tenders be sought from the Council’s five Preferred Registered Social Landlord (housing association) Partners to enter into a long lease with the CPF for the land at Marden Close (on similar terms, but with the period to be agreed with the CPF), and to convert the 20 existing bedsits into 10 self-contained one bedroom flats, to let on assured tenancies to non-elderly couples registered on the Council’s Housing Register;

(3) That the selected housing association be required to submit a capital funding bid to the Homes and Communities Agency to assist with the capital costs;

(4) That the existing tenants of Marden Close be required to transfer to alternative suitable Council or housing association accommodation, with an option to return to the converted flats once completed;

(5) That the Council meets the reasonable removal costs of the existing tenants;

(6) That, if the highest tender received results in a positive net present value (NPV) valuation then:

(a) the Housing Portfolio Holder be authorised to accept the tender and approve the proposed refurbishment scheme without any further reference to the Cabinet; and

(b) the resultant capital receipt be utilised as Social Housing Grant, to be allocated to a housing association to assist with the cost of providing affordable housing at a development elsewhere in the District;

(7) That if the highest tender valuation received results in a negative NPV valuation then a report by the Housing Portfolio Holder to seek appropriate capital funding be submitted to the Cabinet;

(8) That, if Chigwell Parish Council did express an interest, Faversham Hall be leased to the Parish Council for a period of 99 years for letting to local community groups, subject to the lease being completed within six weeks of the negotiated valuation being agreed by the Housing and Legal & Estates Portfolio Holders, unless there were delays outside of the control of the District or Parish Councils;

(9) That the following key terms be included within the lease:

(a) the Parish Council would be charged the agreed negotiated value of the premium and annual rental;

(b) the District Council would use the income received from the premium and annual rental (less the cost of insurances) to fund community development/activities on the Limes Farm Estate, Chigwell;

(c) the District Council would be responsible for insuring the Hall;

(d) existing fixtures, fittings and furniture in the Hall would be included within the lease;

(e) the Parish Council would be prohibited from letting the Hall for parties and the playing of music after 9pm; and

(f) the District Council would retain the freehold of the building, including the retention of the first floor flat;

(10) That, if Chigwell Parish Council did not express an interest in leasing Faversham Hall, or failed to complete the lease within six weeks of the negotiated valuation being agreed by the Housing and Legal & Estates Portfolio Holders (unless there were delays outside of the control of the District or Parish Councils) then the conversion of the Hall into 2 self contained flats be included within the tender arrangements and subsequent refurbishment scheme at Marden Close, with the Hall being leased to the selected housing association for the same period as the lease with the CPF for Marden Close;

(11) That the premium for the proposed lease of the ground floor of Faversham Hall to Chigwell Parish Council be based on the negotiated value agreed by the Housing and Legal & Estates Portfolio Holders;

(12) That, when inviting the Council’s Preferred RSL Partners to submit tenders for the proposed redevelopment scheme for Marden Close, they also be asked to provide an optional purchase price for having a 99 year lease of the ground floor of Faversham Hall and converting the existing hall into two self-contained flats, let on assured tenancies at affordable rents to nominees from the Council’s Housing Register;

(13) That the provision for external repairs and the arrangement of building insurance for Faversham Hall within the proposed lease be undertaken by the District Council, with the associated cost shared between the District Council and Parish Council on a floor area basis of the ground and first floor; and

(14) That the District Council be reimbursed by the Parish Council for its share of the costs by way of a service charge under the terms of the lease.

In the absence of the Housing Portfolio Holder, the Director of Housing presented a report concerning the proposed redevelopment scheme at Marden Close in Chigwell Row. An addendum report had also been circulated regarding the possible terms of a lease for Faversham Hall, following advice from the Principal Valuer & Estates Manager.

The Director of Housing reported that the Council currently leased land at Marden Close, Chigwell Row, from the City Parochial Foundation, on which 20 Council bedsits were built circa 1960. The flats were of poor quality and were difficult to let. A refurbishment scheme by a housing association had been proposed to convert the bedsits into 10 self contained flats. In addition, Chigwell Parish Council had been asked if it would like to lease Faversham Hall, adjacent to Marden Close, to let to community groups, with the District Council using the income to fund community development and activities on the Limes Farm Estate in Chigwell. If the Parish Council was not interested then it was proposed that Faversham Hall should be included within the proposed refurbishment scheme.

The member for Chigwell Row, who was also the Chairman of Chigwell Parish Council, was in favour of the scheme and the Parish Council was very interested in leasing Faversham Hall. The Parish Council would utilise the facility for the benefit of Chigwell residents, both young and old, but was not happy with the current valuation of the Hall. It had been valued as two flats at full market value instead of its existing use as a community hall. It was pointed out that no great profit was ever made from any hall put to community use. The County Council member for Chigwell added that the area had a greater need for a community facility than an additional two flats.

The Portfolio Holder for Finance & Economic Development acknowledged that the Parish Council wanted Faversham Hall to be a focus for the community in Chigwell Row, whilst at the same time the District Council naturally wanted to maximise its income for the benefits of residents in Chigwell and the rest of the District. It was suggested that negotiations with the Parish Council take place after further valuations for Faversham Hall and its current use had been received. It was proposed that the lease would be signed within six weeks of the valuation of Faversham Hall being agreed by the Housing and Legal & Estates Portfolio Holders. All the other recommendations were agreed as per the reports.

Decision: