Agenda item

11.1

The Executive Director, Place submitted a report seeking authority to dispose of two cleared sites at Arbourthorne, referred to in the report as Errington Sites B and C, to Sanctuary Housing Association (SHA) for the development of affordable housing. The new homes would offer a relocation option for those households affected by the demolition scheme in the area (as approved by Cabinet on 8 May 2013).

11.2

RESOLVED: That Cabinet:-

(a)

approves that the land, shown at Appendix A of the report as Errington Site B, be declared surplus to the requirements of the City Council and disposed to Sanctuary Affordable Housing Limited for use as social housing;

(b)

approves that the land now shown as Appendix A as Errington Site C be declared surplus to the requirements of the City Council and subject to the availability of further grant funding and the submission to the City Council of an acceptable scheme disposed to Sanctuary Affordable Housing Limited for use as social housing;

(c)

authorises the Director of Capital and Major Projects, in consultation with the Director of Regeneration and Development Services, to agree an acceptable scheme for Errington C; and

(d)

authorises the Director of Capital and Major Projects, in consultation with the Director of Regeneration and Development Services, to negotiate and agree terms for the disposal of the land for the purposes set out in the report including the variation of any boundaries as required and the Director of Capital and Major Projects be authorised to instruct the Director of Legal Services to complete the necessary legal documentation.

12.3

Reasons for Decision

12.3.1

The development of housing on these sites would benefit the local economy, provide opportunities for local labour and contribute to the physical regeneration of Arbourthorne. The Council would also benefit from funds generated through the New Homes Bonus scheme, which includes additional financial incentives for providing affordable homes.

12.3.2

The provision of affordable housing would provide additional relocation options for Arbourthorne residents affected by demolition and help meet the identified shortfall of affordable housing in the City.

12.4

Alternatives Considered and Rejected

12.4.1

The Housing Revenue Benefit Account Business Plan includes a proposal to build 75 new Council houses over the next three years, so the Council could look to develop Errington B and C itself. However, this would require more prepatory work, which would delay the development process and mean that relocation options were not in place as quickly for residents affected by demolition. It would also mean that the HCA grant being made available via SHA would be lost to the City and that the Council would not be able to pursue new Council housing in any other areas.

12.4.2

A private housing development would not be a viable proposition in the current housing market, so the alternative is to retain the site for future disposal. Whilst this might eventually yield a capital receipt for the Council, the site would be left vacant for the foreseeable future. This would be detrimental to the regeneration of Arbourthorne and would hinder the rehousing process for those residents affected by demolition.

12.5

Any Interest Declared or Dispensation Granted

None

12.6

Reason for Exemption if Public/Press Excluded During Consideration

None

12.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

12.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Safer and Stronger Communities

11.1

The Executive Director, Place submitted a report seeking authority to dispose of two cleared sites at Arbourthorne, referred to in the report as Errington Sites B and C, to Sanctuary Housing Association (SHA) for the development of affordable housing. The new homes would offer a relocation option for those households affected by the demolition scheme in the area (as approved by Cabinet on 8 May 2013).

11.2

RESOLVED: That Cabinet:-

(a)

approves that the land, shown at Appendix A of the report as Errington Site B, be declared surplus to the requirements of the City Council and disposed to Sanctuary Affordable Housing Limited for use as social housing;

(b)

approves that the land now shown as Appendix A as Errington Site C be declared surplus to the requirements of the City Council and subject to the availability of further grant funding and the submission to the City Council of an acceptable scheme disposed to Sanctuary Affordable Housing Limited for use as social housing;

(c)

authorises the Director of Capital and Major Projects, in consultation with the Director of Regeneration and Development Services, to agree an acceptable scheme for Errington C; and

(d)

authorises the Director of Capital and Major Projects, in consultation with the Director of Regeneration and Development Services, to negotiate and agree terms for the disposal of the land for the purposes set out in the report including the variation of any boundaries as required and the Director of Capital and Major Projects be authorised to instruct the Director of Legal Services to complete the necessary legal documentation.

12.3

Reasons for Decision

12.3.1

The development of housing on these sites would benefit the local economy, provide opportunities for local labour and contribute to the physical regeneration of Arbourthorne. The Council would also benefit from funds generated through the New Homes Bonus scheme, which includes additional financial incentives for providing affordable homes.

12.3.2

The provision of affordable housing would provide additional relocation options for Arbourthorne residents affected by demolition and help meet the identified shortfall of affordable housing in the City.

12.4

Alternatives Considered and Rejected

12.4.1

The Housing Revenue Benefit Account Business Plan includes a proposal to build 75 new Council houses over the next three years, so the Council could look to develop Errington B and C itself. However, this would require more prepatory work, which would delay the development process and mean that relocation options were not in place as quickly for residents affected by demolition. It would also mean that the HCA grant being made available via SHA would be lost to the City and that the Council would not be able to pursue new Council housing in any other areas.

12.4.2

A private housing development would not be a viable proposition in the current housing market, so the alternative is to retain the site for future disposal. Whilst this might eventually yield a capital receipt for the Council, the site would be left vacant for the foreseeable future. This would be detrimental to the regeneration of Arbourthorne and would hinder the rehousing process for those residents affected by demolition.

12.5

Any Interest Declared or Dispensation Granted

None

12.6

Reason for Exemption if Public/Press Excluded During Consideration

None

12.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

12.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Safer and Stronger Communities