Agenda item

(The Director of Housing) To consider the attached report (CHB-004-2013/14).

(1)        That the Phase 1 development feasibility studies, consisting of the site of the former Red Cross Hall and three further garage sites in Roundhills, Waltham Abbey together with the garage site at Harveyfields, Waltham Abbey be approved to progress to the detailed planning stage, and if planning permission is received, that invitation of tenders be issued;

(2)        That the feasibility study for the conversion of the former sheltered accommodation at Marden Close, Chigwell Row be approved to progress to the detailed planning stage and, if planning permission is received, that invitation of tenders be issued;

(3)        That the estimated combined capital investment required to deliver all 25 new affordable rented Council properties in Phase 1, together with the conversion at Marden Close, creating 10 new self contained 1-bed flats for general needs housing with social rents in the sum of £4,442,285 including fees and works, (broken down as £3,948,421 for Phase 1 and £493,864 for Marden Close) be noted;

(4)        That an estimated subsidy of £425,000 be set aside for Phase 1 of the developments in order to achieve a pay-back period of 30 years with a positive Net Present Value (NPV);

(5)        That the Housing Portfolio Holder be authorised to submit the detailed planning applications for each of the Phase 1 development sites and for Marden Close; and

(6)        That provision be made within the Housing Revenue Account Capital Programme to fund the developments in Phase 1 of the Housebuilding Programme and at Marden Close, Chigwell Row.

The Assistant Director of Housing presented a report on the Feasibility Reports for the proposed Phase 1 of the Housebuilding Programme.

The Assistant Director reported that taking account of the Draft Development Strategy, Design Standards and Employers Requirements, East Thames had prepared individual feasibility study reports for: the former Red Cross Hall site and 3 further garage sites on Roundhills, Waltham Abbey; a garage site in Harveyfields, Waltham Abbey; and the former sheltered accommodation units at Marden Close, Chigwell Row.

Members noted that a financial viability assessment had been undertaken for each site individually and collectively as a package. In total, across all 3 proposed development sites, the package would deliver 25 affordable Council dwellings and a further 10 x 1 bedroom flats for social rent at a total estimated cost of around £4,442,285, using £425,000 subsidy to achieve a 30-year pay-back and a positive Net Present Value.

All of the ward members for the 3 proposed development sites, and Marden Close, had been invited to attend the Cabinet Committee meeting and those present were invited to provide their comments on the proposals. All ward members present were generally supportive of the development proposals.

Decision:

(1)        That the Phase 1 development feasibility studies, consisting of the site of the former Red Cross Hall and three further garage sites in Roundhills, Waltham Abbey together with the garage site at Harveyfields, Waltham Abbey be approved to progress to the detailed planning stage, and if planning permission is received, that invitation of tenders be issued;

(2)        That the feasibility study for the conversion of the former sheltered accommodation at Marden Close, Chigwell Row be approved to progress to the detailed planning stage and, if planning permission is received, that invitation of tenders be issued;

(3)        That the estimated combined capital investment required to deliver all 25 new affordable rented Council properties in Phase 1, together with the conversion at Marden Close, creating 10 new self contained 1-bed flats for general needs housing with social rents in the sum of £4,442,285 including fees and works, (broken down as £3,948,421 for Phase 1 and £493,864 for Marden Close) be noted;

(4)        That an estimated subsidy of £425,000 be set aside for Phase 1 of the developments in order to achieve a pay-back period of 30 years with a positive Net Present Value (NPV);

(5)        That the Housing Portfolio Holder be authorised to submit the detailed planning applications for each of the Phase 1 development sites and for Marden Close; and

(6)        That provision be made within the Housing Revenue Account Capital Programme to fund the developments in Phase 1 of the Housebuilding Programme and at Marden Close, Chigwell Row.

Reasons for Decision:

It was a requirement that the House-Building Cabinet Committee considered and approved the package of feasibility studies and financial viability reports for each phase of works and for Marden Close, taking into account the views of the local Ward Members who represented 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 one or more of the schemes and develop a smaller number of sites.

(2)        To amend the property sizes and types on any or all of the schemes.