Decision details

A decision to redevelop the second phase of St Paul’s was taken earlier this year. A further decision as to whether the affordable units are to be owned by CBC or CBH is still to be formally agreed. Cabinet will also be asked to approve entering into a development agreement with the approved contractor.

The Cabinet Member Housing and Safety introduced the report which established the approvals required from Cabinet in order that a contract could be entered into for the construction of 24 affordable homes alongside 32 homes for outright sale.

The Head of Legal Services was invited to address members in respect of the contract and the Chief Executive, CBH, also addressed the Cabinet in respect of deliverability of the scheme.

Members considered the issues and agreed that the recommendation was a sensible way forward.

RESOLVED THAT

(1)     the transfer of land to CBH for nil consideration be approved and that authority be delegated to the Head of Property and Asset Management in consultation with the Borough Solicitor to agree the terms of the disposal and to agree any necessary changes to the areas of land to be transferred.

(2)     the Authority and CBH be authorised to enter into all necessary agreements and other legal documentation required to facilitate the development of 56 units. 24 of which will be affordable units, and 32 units will be for private sale and that authority be delegated to the Head of Property and Asset Management in consultation with the Borough Solicitor to agree the terms thereof.

(3)   the Head of Property and Asset Management in consultation with the Borough Solicitor be authorised to apply to the Secretary of State for Communities and Local Government for any consents necessary to facilitate St Paul’s Phase two development.

Council be recommended that:

(4)     in addition to the previously approved £450,000 budget for site assembly costs for the St Pauls Phase 2 development, Council approve a further capital subsidy payment of £100,000 to CBH to be used towards the cost of developing the affordable housing. The total capital support of £550,000 will be financed from usable capital receipts arising from HRA asset disposals that the Council has previously resolved to apply to the provision of affordable housing.

(5)     the Authority enter into a loan agreement with CBH to a maximum of £2.3 million, repayable from the net rental stream from the affordable housing properties.

(6)    it delegates authority to the Director of Resources in consultation with the Borough Solicitor to agree the terms of the loan agreement between the Authority and CBH.

CBH Board