Issue - decisions

Townhill Park Regeneration Framework: Further consideration of the financial model and approval of the capital expenditure for the implementation of Phase 1.

21/08/2012 - Townhill Park Regeneration Framework: Further consideration of the financial model and approval of the capital expenditure for the implementation of Phase 1.

(i)  To approve the vision and themes of the Townhill Park Regeneration Framework based on the modified Central Park option and to delegate authority to the Director of Environment and Economy to finalise the Townhill Park Regeneration Framework following consultation with Head of Finance and IT (CFO) and the Cabinet Member for Housing and Leisure and Leader of the Council.

Note: A number of proposals contained in the Framework documents require further study and consultation and these studies and consultation may necessitate some changes to be made to the Framework.

(ii)  To approve in principle the redevelopment of Townhill Park in three phases with the following zones in each phase:

·  Phase 1 comprising zones 1, 33, 34, and 35

·  Phase 2 comprising zones 9, 11 (redevelopment), 12,19 20, 27 and  28

·  Phase 3 comprising zones 13, 14, 17, 24, 29, 30, and 25

including additional associated open space and highways improvements incorporated in the proposals and to delegate authority to the Director of Environment and Economy, following consultation with the Head of Finance and IT (CFO) and the Cabinet Member for Housing and Leisure, to amend Phases, to move or amend zones within phases, to decide the extent of improvements and when to implement the additional open spaces and highways improvements incorporated in the proposals.

Note Zone 33 is now proposed in Phase 1 and Zone 25 in Phase 3

Further public consultation is planned in the next couple of months with residents of Phase 1, prior to a firm decision on proposals for this site.

(iii)  To note that further consultation will be carried out, starting in August 2012, with residents affected in phase 1 , and residents affected by the proposed new road, and reported back to Cabinet

(iv)  To agree to recommend to Council that the HRA capital programme will fund the site preparation costs set out in this report, currently estimated at £11.8M, and to recommend that Council approve a virement of £10.5M from the uncommitted provision for Estate Regeneration, which exists in the HRA capital programme and business plan, and £1.3M from the uncommitted funding for affordable housing in the Housing GF capital programme to establish a specific budget of £11.8M for Townhill Park, the phasing for which is set out in Appendix 1.

(v)  To note that the HRA will be required to incur further capital expenditure to acquire the 450 units of social housing, provision for which has been included in the 30 year HRA Business Plan projections for these proposals, but with the timing dependent on the final details of the development agreement and subject to future Cabinet/Council approvals.

(vi)  To note that the General Fund capital programme will be required to fund highways infrastructure, open space improvements and replacement community facilities where appropriate, at an estimated cost of £2.8M with the method of funding this being agreed once the use of the Community Infrastructure Levy and the value of the GF capital receipts are known.

(vii)  To agree that the preferred approach for the provision of the new social housing is for this housing to be supplied by the Council, as part of the HRA, and that this new social housing provision will be provided for letting at affordable rents, subject to approval from the Department for Communities and Local Government / Homes and Communities Agency.

(viii)  To agree to recommend to Council that:

a)  £23.9M of the 30 year HRA revenue surplus is utilised to meet the long term revenue costs of the regeneration of Townhill Park, which includes the requirement to repay the debt on the dwellings that have been disposed of from the general HRA revenue balance as there is no net capital receipt to fund this repayment.

b)  The General Fund capital programme funds the highways infrastructure, open space improvements and replacement community facilities where appropriate, at an estimated cost of £2.8M with the method of funding this being agreed once the use of the Community Infrastructure Levy and the value of the GF capital receipts are known.