The above report is on the Cabinet Forward Decision List for 31 March 2015 and has been identified by the Chairman for consideration by the Panel.
The Panel are requested to consider the report and make any appropriate recommendations to Cabinet.
Minutes:
The Corporate Project Officer presented the Cabinet report which updated Members on progress made on the NORA Housing project and requested Members to authorise the signing of contracts to enable the start of works for Phase 2.
He reminded the Panel that on 29th July 2014 Cabinet had authorised the Chief Executive and Deputy Chief Executive, in consultation with the Portfolio Holder for Regeneration, subject to a trigger point of 20 sales on phase 1, to authorise the signing of contracts and the start of works for phase 2. The latter was subject to the business case not requiring an additional contribution for phase 2 of more than £400,000.
The Corporate Project Officer explained that this position had not quite been reached, even though sales had gone well with 42 out of 54 units having been sold, of which nine had been exchanged, eleven were due to be exchanged in the coming weeks and 22 had been reserved.
The Corporate Project Officer outlined the options available to Cabinet as set out in the report at point 3. Option 3 was the preferred option which would be recommended to Cabinet and would include the provision of affordable housing units. The Corporate Project Officer provided the Panel with details of the other options available.
The Panel was informed that under the initial agreement each party had invested £1 million into the project, the Council’s investment being in the form of land value. Norfolk County Council had now increased their contribution to £1.2 million.
The Corporate Project Officer referred to the financial implications and risk management implications as set out in the report.
The Chairman thanked the Corporate Project Officer for the report and invited questions and comments from the Panel, some of which are summarised below.
The Portfolio Holder for Regeneration and Industrial Assets, Councillor Beales reminded the Panel how the NORA site used to be and the significant amount of work involved to make it into a developable site. He felt that the end result was very pleasing and units were selling well. He encouraged members of the Panel to visit the site to see the quality properties which had been provided.
The Portfolio Holder for Regeneration and Industrial Assets explained that the key issue was the provision of affordable housing. The Council could have put a case together that the provision of affordable housing was unviable, but he felt the provision of affordable housing was important.
Councillor Moriarty sought assurance that no further funds would be required following the current request and asked if the commencement of phase 2 could wait until the remaining units on phase 1 had been sold. The Portfolio Holder for Regeneration and Industrial Assets explained that funds were required for the completion of phase 1. The completion of phase 2 would result in further capital receipts which could be used on other capital projects. The Portfolio Holder reminded those present that the project was a regeneration project and would not be consuming capital it would be generating it at a level cost to the tax payer.
The Corporate Project Officer explained that it was hoped that the remaining units would be sold shortly. An event would be held on site to promote the Help to Buy scheme. The Corporate Project Officer explained that this site was the only site available in King’s Lynn which offered the Help to Buy scheme. The Panel was informed that there was already a demand for phase 2 properties and by starting work on phase 2 there would hopefully be a continuous product available.
Councillor Bubb requested clarification on the qualifications for affordable housing. The Portfolio Holder for Housing and Community agreed to circulate details of the criteria to the Panel for information.
Councillor Mrs Collingham expressed support for the scheme and felt that it was an excellent way to make use of Capital Funds, especially considering the need for housing in King’s Lynn. She referred to the New Homes Bonus and the Council Tax which would be received by the Council. Councillor Mrs Collingham commended the scheme.
The Portfolio Holder for Regeneration and Industrial Assets thanked Councillor Mrs Collingham for her positive comments and referred to point 6.4 of the report which explained that it was estimated that the Borough Council would receive £1,072,350 and Norfolk County Council would receive £1,177,389 in New Homes Bonus, subject to the continuation of the scheme.
The Chief Executive reminded those present that a number of years ago the Council had made a decision to regenerate the NORA site. It was a very difficult site to get involved with and required significant investment. The Chief Executive explained that it was now important to ensure that development continued. He informed the Panel that the units provided on the site were very high quality and recommended that Members conduct a visit to the site. The Chief Executive reminded those present that alongside receiving capital receipts, the Council would still be retaining an asset in equity shares.
RESOLVED: That the Regeneration, Environment and Community Panel support the recommendations to Cabinet as follows:
1. To authorise the signing of contracts to enable the start of works for Phase 2.
2. To fund additional contributions from a reduction in the overall land receipt using option 3 paragraph 3.3 of the Cabinet report.