Agenda item

Decision:

1.    To approve the Strategic Outline Business Case for the Guildford Park Road Redevelopment, attached as Appendix 1 to the report submitted to the Executive, and to endorse the recommended delivery strategy outlined within.

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.

The report sat within the lead councillor portfolios for Communities and Housing and Regeneration. The Leader of the Council began the introduction of the report as she held the Communities and Housing portfolio.

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 this regard, especially when hoping to attract tenders from potential business partners.

Overall, the Executive was in favour of progressing the development and consequently,

RESOLVED:

1.    To approve the Strategic Outline Business Case for the Guildford Park Road Redevelopment, attached as Appendix 1 to the report submitted to the Executive, and to endorse the recommended delivery strategy outlined within.

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.