Decision details

To ratify the reappraised financial projection of the project.

The Executive

RESOLVED: That the Managing Director be authorised, in consultation with the Leader of the Council, to sign and complete the Grant Agreement with Homes England to implement the infrastructure works and draw down the grant expenditure.

The Executive further

RECOMMEND (to Council):

(1)        That an additional capital supplementary estimate of £274.057 million be approved to allow a total capital budget of £359.504 million to enable the Council to deliver the infrastructure phase of the Weyside Urban Village Development.

(2)        That £5.781 million of the additional capital budget be placed on the approved capital programme to progress the allotment relocation and funding of the Thames Water agreement costs during 2019-20.

(3)        That the Council acts as Infrastructure Developer until completion of the Thames Water Infrastructure in 2026.

Reasons:

There are financial, economic and social benefits:

The budget would enable the Council to deliver the infrastructure for the development ensuring deliverability and control.

The land value would be increased by the infrastructure phase being delivered upfront and ahead of Land Parcel Sales.

The project would also deliver:

·       1500 new homes including 600 Affordable Homes

·       2000 square metres of community space

·       6500 square metres of employment space

·       A new relocated fit for purpose Thames Water Sewage Treatment Works

·       Extensive infrastructure improvements

·       This scheme contributes to the delivery of the adopted Local Plan

·       This scheme contributes £233 million in economic impacts for Guildford

The project has significant infrastructure to be put in place to enable the above critical success factors to be delivered. Allocating the capital budget would enable all of the infrastructure phase to be delivered and would de-risk the site in readiness for the next stage to facilitate the delivery of homes.

Alternative options considered and rejected by the Executive:

To cease the project retaining the site in its existing state.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None