Agenda item

The Commission considered a joint report of the Director of Corporate Resources and Chief Executive concerning the outcome of work undertaken to identify the Council’s objectives for the East of Lutterworth Strategic Development Area (SDA) and assess the potential options available for the delivery of the scheme which could also be applied to other development projects on County Council sites. A copy of the report marked ‘Agenda Item 7’ is filed with these minutes.

 

The Chairman welcomed to the meeting Mr N J Rushton CC, Leader of the Council, Jon Bennett Head of Strategic Property, Simon Lawrence Head of the Growth Unit and Major Programmes along with Andy Pack and Saheeda Bowmer for 31ten Consulting and Matthew Watters for Bevan Brittan.

 

The Leader and Jon Bennett introduced the report and advised members that the County Council had now acquired all of the land. The aim was to ensure that the County Council could have a major influence on the type of development, the aim being to have an exemplar development which was aspirational in terms of housing type and design whilst still delivering a return on investment.

 

Andy Pack of 31ten Consulting updated members on the work his team had undertaken both in terms of defining the objectives of the development but also considering the best means of delivering. He and his team had assisted a number of other authorities with similar schemes and stated given that the County Council was the sole owner of all the land it put the Council in a strong position in terms of engaging with the market and retaining a significant influence of the design of the development.

 

With regard to the delivery options appraisal, members were advised that the preferred model was a 50/50 Joint Venture partnership with a strategic partner.  This partnership would operate the development over the long term. A 50/50 partnership was suggested so that the Council could ensure, through its involvement, that the development had regard to the aims and objectives, which were in line with the Council’s strategic objectives, over the life of the development.

 

In response to questions members were advised:

 

    (i)          The 40% affordable housing would be of mixed tenure. Through the Joint Venture Partnership, the Council would be able to ensure that this objective was continued through the life of the Scheme. As part of the procurement and delivery approach, consideration would be given to a range of housing options and to the establishment of a housing company to manage the social housing to overcome issues with right to buy.

 

   (ii)          The need for social care housing was being looked at in terms of sheltered housing and designing homes for life, as well as other initiatives.

 

 (iii)          The Local Authority Accelerated (LAAC) Fund had provided £8million for the development and a part of the conditions for this fund was that the first 650 houses had to be built using new design and construction methods. As part of this there would be an exploration of modular builds and other design and construction techniques.

 

 (iv)          Community engagement had been a key consideration and there had been extensive consultation with the parish council and local groups in the area. There was no requirement to build a new secondary school in the development.  This would strengthen the interaction between the new Strategic Development Area and the existing town.

 

   (v)          The location of warehousing close to the M1 had been determined at the Local Plan stage and was was aimed at ensuring that logistics freight would not adversely impact on the development or the existing town centre.

 

 (vi)          Green infrastructure would be owned and maintained by the Joint Venture and this could involve use of Community Land Trusts. With regard to low carbon living there would be no mains gas to the site and options such as solar energy and ground source heating were being explored.

 

(vii)          The Council was still waiting to hear the outcome of the HIF bid which, if successful, would contribute £31 million towards the cost of the spine road. The announcement on this was not expected until January/February 2020. Even without the HIF money the development would be viable but there would be a lower return and could necessitate some changes in the weighting of the objectives. The development would also take longer to complete.

 

(viii)          The Council would need to use the OJEU procurement process. As part of this process there would be a dialogue with potential partners when their track record to deliver would be explored.

 

RESOLVED:

 

That the report be noted and the Cabinet be advised that the Commission:

 

a)    Supports the proposed approach now outlined;

 

b)    Welcomes the proposals for 40% affordable housing and for the ambition of the development being carbon friendly;

 

c)     Supports the outcome of the Options Appraisal and Soft Market Testing which had concluded that a Joint Venture with a strategic partner to enable, develop and operate the site offered the best chance of delivering to the objectives of the Scheme;

 

d)    Notes that the proposed approach is a departure from previous practice and therefore carries additional financial risks but is of the view that these additional risks will be outweighed by the rewards particularly to the reputation of the Council from delivering a successful exemplar project.