99 Guildford Park Road Redevelopment - Approval to Proceed to Next Stage PDF 110 KB
Additional documents:
Decision:
2. To endorse the revised planning strategy for the project.
3. To approve commencement of the procurement of a development partner to support the delivery of the Guildford Park Road housing project.
4. To approve the spend of up to £700,000, already allocated for the scheme within the Housing Revenue Account approved capital programme, to deliver the procurement activity.
5. To delegate to the Strategic Director of Place, in consultation with the Lead Councillor for Housing and Community and Lead Councillor for Regeneration, authority to enter into such other contracts and legal agreements connected with the Guildford Park Road housing project as may be necessary in compliance with Procurement Procedure Rules and within the approved budget.
Reason(s):
1. The Guildford Park Road redevelopment is a key scheme within the Housing Revenue Account Business Plan that will deliver a significant number of additional homes in the town centre. Officers currently have no authority to initiate the delivery phase of the scheme, and this authority is now sought from the Executive.
2. The recommendation will support the delivery of the Council’s Corporate Plan (2021-2025) priorities by providing and facilitating housing that people can afford.
Other options considered and rejected by the Executive:
1. Do Minimum – Sell the site with no conditions attached
3. Do Most – The Council builds out the scheme directly and takes on all development risks
Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:
None.
Minutes:
For many years, the Council had aspired to redevelop the surface car park at Guildford Park Road to make better use of the asset. Various schemes had been considered, but in 2021 a new Mandate and Strategic Outline Business Case (SOBC) were considered and approved by the Executive. This enabled the Council to re-initiate the project, to develop a new detailed planning application for the site and develop a wider business case for the post-planning delivery of the scheme.
The Executive considered the report that set out an updated SOBC including a proposed delivery strategy. The report sought Executive authorisation to commence implementation of the recommended delivery strategy and, specifically, to initiate a procurement exercise to select a Development Partner to deliver the scheme on behalf of the Council. The provision of new homes, particularly for those on the housing waiting list, was a priority for the Council.
The Lead Councillor for Regeneration endorsed the Leader’s introduction and further explained that the recommendations in the report would reduce the Council’s exposure by allowing a commercial private sector partner to undertake the risks involved in the development of the site. This was expected to be an agreeable arrangement for both parties since the majority of the development would be sold on the open market and the Council would buy back its allocation of Affordable stock. It was expected that there would still be a degree of risk with regard to the eventual price of the Affordable stock given the wider prevailing economic uncertainties.
The Executive noted a further risk in that the project may not attract a suitable Development Partner whilst it was in the pre-planning stages, however it was explained that pre-application advice had been received and that a dedicated Planning Officer had been employed. It was expected that a ‘pre-app note’ would be finalised within the coming two weeks.
It was emphasised that the Council desired 40% of the development to be designated Affordable and that construction and design should exceed the sustainability requirements necessary for Planning approval. In terms of massing and height, it was suggested that the ward councillors for Onslow be actively involved with consultation to be alert to any issues arising well before Planning Committee stage. When appointed, the Development Partner would be contractually obliged to undertake extensive consultation with the local community and matters of height and massing should be discussed and resolved at this stage.
It was argued that the current design for Guildford Park Road included heights on a par with the North Street application that had recently been refused planning permission. Whilst some members felt that the Planning Committee should be free to judge each application on its merits, others suggested that it was imperative the Council have clear policy guidance on what it considered acceptable in ... view the full minutes text for item 99
Additional documents:
Decision:
(1) To authorise immediate payment of £70,106.89 to UK Power Networks (UKPN) to establish the capacity for, and cost of, the electrical connections that will be required for the Guildford Park Road Redevelopment scheme.
(2) To authorise the Strategic Director: Place, in consultation with the Lead Councillor for Resources, to enter into such agreements as are necessary with UKPN.
(3) To agree that funding for this payment be brought forward into this financial year from the approved HRA capital programme budget for 2023/24 in respect of this project.
(4) To agree that the call-in provisions of Overview and Scrutiny Procedure Rule 16 (h) should not apply in respect of the decision in respect of this matter due to its urgency.
Reason(s)
Officers consider that authorising this payment now will be of significant benefit to this project in the future. Making the payment will secure electrical capacity for the scheme and shield it from unquantified but potentially significant cost, programme and deliverability risk.
Other options considered and rejected by the Executive:
Option (b) To not authorise officers to make payment to UKPN now.
Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:
None.
Minutes:
It had been established that there were electrical distribution network capacity issues in Guildford that could have significant consequences for the cost and deliverability of the redevelopment scheme in the future. The Council had the opportunity to act now to secure capacity for its development through early funding of the future electrical connections required for the scheme. The cost was £360,000 based upon the quotation received from UK Power Networks (UKPN). This cost had been budgeted for but was not expected to be incurred at this early stage of the project. Officers had no existing delegation to authorise payment in respect of this cost at this stage.
Given the urgency of the decision which, in compliance with the UKPN contractual arrangement, was to be taken no later than 15 December 2022 the special meeting of the Executive had been convened.
The Leader of the Council introduced the report and thanked the Chairman of the Overview and Scrutiny Committee for waiving the call-in procedure and the requirement to wait the 28-day period for a key decision.
It was explained that since the agenda had been published, legal advice had been received which considered that instructing UKPN to undertake all works, including those that were contestable, would not comply with procurement regulations unless an appropriate exemption was sought. Contestable works were the elements of the connections work which could be undertaken by others.
For the purposes of securing the capacity it was acceptable to instruct UKPN to undertake non-contestable works only. This work had been costed at £70,106.89. Non-contestable works were the elements of the connections work which must be completed by UKPN.
There was scope to instruct UKPN to undertake the contestable works at a later stage if it could be determined that this would provide best value for the project and an appropriate procurement exemption was sought. This information was set out in the Supplementary Information Sheet circulated at the meeting.
The UKPN quotation for the contestable works set out terms and conditions regarding timescales for take up but these were negotiable given the Council had entered into the agreement. If, in future, either the Council as developer or another party as developer required negotiations for contestable works this could be agreed alongside the non-contestable works.
UKPN would reimburse the Council should the work to develop the site not proceed, but the level of reimbursement would be subject to deductions dependent upon how much advance preparatory work had been undertaken by UKPN. Consequently, the Executive,
RESOLVED:
(1) To authorise immediate payment of £70,106.89 to UK Power Networks (UKPN) to establish the capacity for, and cost of, the electrical connections that will be required for the Guildford Park Road Redevelopment scheme.
(2) To authorise ... view the full minutes text for item 64