Decision Maker: Mid Suffolk Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
It was RESOLVED: -
That Cabinet: -
1.1 Approved option 1 namely to appoint Mid Suffolk Growth Limited (MSGL) to deliver the scheme on behalf of the Council for the market and affordable units
1.2 Delegated the negotiation and conclusion of the Development and Funding Agreements to the Deputy CEO, the Section 151 Officer, and Portfolio Holder for Asset and Investment
1.3 Approved delivery of the affordable housing on site in accordance with the Affordable Housing Strategy and in consultation with the Housing Portfolio
1.4 Approved the use of the capital funding within the MTFS for the delivery of the market homes.
REASON FOR DECISION
To enable and support the delivery of housing within the district and support the Councils aspiration to deliver low carbon homes to meet the targets set out in the Carbon Reduction Management Plan
Alternative Options Considered and Rejected:
1.1 Option 1 – Appoint Mid Suffolk Growth Limited (MSGL) to deliver a market and affordable housing scheme.
Initial design and feasibility work has been undertaken by the design team within MSGL to establish whether an exemplar low carbon scheme could be delivered on the site at Church Road in Elmswell. MSGL were provided with a brief from Housing seeking an updated view on a previous masterplan for the site, to bring the design in line with the Council’s aspirations for exemplar low carbon homes and sustainable place making through the Council’s own developments.
The initial design work has concluded that an exemplar scheme of circa 50 homes is achievable and would deliver new affordable and market housing that showcases the Councils new design guide and specification, providing high quality sustainable new homes for residents. There is need for affordable homes within Elmswell, this is a large site, so it is appropriate to have a balance of tenures, using affordable rented, affordable home ownership properties and market homes to deliver a sustainable scheme and community.
By entering into a Development Agreement with MSGL to deliver the scheme the Council will have access to the technical and professional design team required to progress the scheme through design, planning and ultimately to delivery.
The scheme will be funded partly through the General Fund (GF) and partly though the Housing Revenue Account (HRA).
There is £7m within the GF MTFS capital programme for the market housing element of the scheme, and £7m within the HRA capital programme for the affordable homes.
The market homes will be profit generating which will enable those funds to be reinvested across the district, it is anticipated the market homes will deliver circa 5% profit overall.
The affordable homes will be delivered in line with the updated Affordable Housing Strategy.
MSGL was set up to enable the Council to deliver more new housing in line with the aspirations of the Council on the type of new homes they wish to deliver, in this case an exemplar low carbons scheme. Other partners may not wish to develop this scheme to this high standard, favouring a higher profit margin, so MSGL is the preferred delivery option for this scheme.
Appendix A shows the site location
Appendix B shows the artist impression of how the site could look once completed
1.2 Option 2 – Disposal of the Land
This land is owned by the Housing Revenue Account (HRA) and therefore it has a primary function to deliver new homes.
In some circumstances HRA land can be disposed of on the open market, this would have to be approved by the Secretary of State.
Land would have to be defined as being “surplus” meaning that it is not required to deliver more homes or is not capable of delivering homes.
As the land is suitable for housing, and in an area that has demand for new homes, the land is not deemed to be surplus, and therefore it is not appropriate to dispose of the land to be used for other purposes.
Elmswell is a sustainable location for both market and affordable homes with good transport links and local amenities. Part of the design work will be to establish with Strategic Housing an appropriate mix of tenure based on current data available at that time.
1.3 Option 3 – Do Nothing
This is not a viable option. The land can support a low carbon exemplar scheme that will enhance the local area and provide much needed homes as well as offering a unique offer to the market in terms of high-quality low carbon homes with special attention to place making design and integration into the existing settlement
The recommended option to enable housing delivery is Option 1. This will deliver high quality low carbon homes and support the delivery of Mid Suffolk’s newly adopted design guide and support further housing delivery within the district
Any Declarations of Interests Declared:Councillor Richardson declared an Other Registrable Interest due to being a Director of Mid Suffolk Growth Limited for which he had received dispensation and was therefore able to debate and vote on the item.
Any Dispensation Granted: None
Publication date: 08/11/2022
Date of decision: 07/11/2022
Decided at meeting: 07/11/2022 - Mid Suffolk Cabinet
Effective from: 16/11/2022
Accompanying Documents: