Agenda item

Report number DRS22 by the Director of Regulatory Services.  (attached)            

DECISION: 

(1)          That as the scheme for the redevelopment of Aire Road, Grantham previously agreed under Non Key Decision PRO309 taken by the Portfolio Holder on 31^st August 2004 would not attract Housing Corporation grant funding without reducing the size of the affordable housing units and the garages, the Cabinet now approves Option 4 as detailed in report DRS22;

(2)          To approve the transfer of land to Nottingham Community Housing Association (NCHA) at the District Valuer’s valuation, subject to full nomination rights in favour of the Council, with the Council granting financial assistance in respect of the whole purchase price in accordance with Section25 of the Local Government Act 1998 and the General Disposal Consent 2005;

(3)          To provide a capital contribution of up to £192,916 for the cost of additional floor area to meet the specification defined by South Kesteven, but with integral garages where provided.  The capital contribution being funded from Section 106 reserves and future commitments.  The contribution to be negotiated with NCHA by the Director of Regulatory Services and Director of Finance and Strategic Resources in consultation with the Community Safety Portfolio Holder.

Considerations/Reasons for Decision:

(1)              Report number DRS22 by the Director of Regulatory Services summarising progress with the Aire Road development project and presenting proposals for working jointly with Nottingham Community Housing Association (NCHA) in procuring the construction of 34 timber framed houses based upon a formal negotiated partnering contract with Westleigh Homes Ltd of Leicester;

(2)              NCHA are now committed to the project and have included the work in its own delivery programme.  Working with this preferred RSL has presented the opportunity to procure the construction work on a full partnership contract basis, making use of the organisation’s expertise, experience and cost management database in support of the Government’s Modern Procurement Programme.  NCHA has approached the Housing Corporation for funding the scheme on the basis of that previously proposed.  However, the Housing Corporation is unlikely to grant the funding unless the size of the units is reduced and the garages deleted;

(3)              In the light of changed circumstances, Option 4 (to work in partnership with NCHA to deliver 34 affordable housing units only on the site and to transfer the land to the RSL at District Valuer’s valuation with the Council granting capital subsidy for the units) presents the most viable option to provide additional affordable housing units without any further delay.  Start on site can be commenced within the current financial year, subject to Housing Corporation funding, and completion would be scheduled for December 2006/January 2007.  SKDC capital funding of £192,916 could be secured from Section 106 reserves;

(4)              Since the decision in August 2004, the Council has undertaken the Stock Option Appraisal and been subject to the Audit Commission Strategic Housing inspection. The Aire Road proposals to deliver 34 units have been subject to consultation with residents who have indicated their agreement to the revised scheme.

Alternative Options considered and rejected:

Report DRS22 lists four options to deliver the redevelopment in partnership with NCHA (full details contained within the report).  Options, one, two and three are discount as Option four represents the most appropriate way forward to deliver the units and to take the funding opportunity available within the current year.