Agenda item

7.6

AGENDA ITEM 14:FOX HILL REDEVELOPMENT

7.6.1

The Executive Director, Place, submitted on the progress of work being undertaken in connection with the Fox Hill Redevelopment.

7.6.2

RESOLVED: That Cabinet:-

(a)

authorises the Director of Property and Facilities Management and the Director of Housing, Enterprise and Regeneration to negotiate any new terms of the lease as are considered necessary for the provision good quality housing at Fox Hill;

(b)

delegates to the Cabinet Members for Homes and Neighbourhoods and Business, Skills and Development, authority to consider the developers final proposals and whether they meet the City Council’s requirements and make a decision as to whether or not  to proceed with those proposals; and

 (c)

subject to the decision being  made to proceed with the proposals, authorises the Director of Property and Facilities Management to instruct the Director of Legal Services to complete the necessary legal documentation.

7.6.3

Reasons for Recommendations

The City Council wants to ensure that a new developer is secured who can deliver high quality housing for Fox Hill and is working with KPMG, who have been testing the market to identify developer interest.

This report requests that officers are authorised to continue with the negotiations and agree a variation of the lease to allow a new scheme of development which will still maintain the high quality standards required.

7.6.4

Alternatives Considered and Rejected

The City Council (CC) has been cooperating with KPMG to allow them to secure a new developer. They have carried out some extensive market testing but interest in the site with the present obligations under the lease has been weak, resulting in only one positive expression of interest.

If Artisan H Ltd remains in breach of the terms of the lease the CC could require that the lease is assigned to the CC for £1 and could seek to identify another developer. However, following the market testing already carried out, this is unlikely to result in any further interest.

 In the mean time the CC would be responsible for all security and health and safety costs and no funding is available for this.

There is a reputational risk to the CC if this project is not taken forwards in a timely manner. Currently, the CC is cooperating with KPMG in order to get best value and high quality design for the site. The potential developer is willing to work at risk, but requires reassurance from the CC that we will not start negotiations with any other developer in the short term (6 months from June). This report allows officers to negotiate the best deal for the CC to allow the development to progress.