Agenda item

The Portfolio Holder for Corporate Finance and Resources to submit a report setting out a proposal for the disposal of a small section of access road to the Council’s waste collection depot site at Lake Terrace, in order to enable a development of 90 affordable homes by Nottingham Community Housing Association (NCHA).

Cabinet:

 

1)    APPROVED the disposal of land (the access road at lake terrace);

 

2)    NOTED the draft heads of terms;

 

3)    DELEGATED authority to:

·         the Director for Growth and Regeneration to make minor amendments to the draft heads of terms;

·         the Director for Growth and Regeneration to complete the sale;

·         the Director for Housing and Communities in consultation with the Portfolio Holder for Housing and Communities to finalise the draft Local Lettings Policy.

Pranali Parikh, Director for Growth and Regeneration introduced the report, the purpose of which was to set out a proposal for the disposal of a small section of access road to the Council’s waste collection depot site at Lake Terrace, in order to enable a development of 90 affordable homes by Nottingham Community Housing Association (NCHA).

 

Ms. Parikh advised that the Council’s Property team had agreed a commercial deal with developers, which would generate a capital receipt, meet the Council’s obligation to achieve best value and mitigate against any risk or concerns identified.

 

Ms. Parikh confirmed that the disposal was in line with the Council’s Asset Disposal Policy and met a key objective of the Council’s Corporate Plan (using Council assets to enable housing growth and development within the borough).

 

Ms. Parikh highlighted the benefits of disposal:

 

·         Developing value

·         Generating a capital receipt

·         Reducing the Council’s maintenance liability

·         Generating a range of social and economic regeneration benefits

·         Community benefits through the provision of affordable housing at the site.

·         disposal would be simultaneous with Section 38 and Section 278 Agreements with Leicestershire County Council (LCC), meaning that the developer would undertake improvement work on the road and LCC, as Highway’s Authority would adopt it a s a public highway, maintaining public access and ownership of the road.

 

Ms. Parikh advised that in consultation with Members, a range of issues had been considered (the concentration of affordable housing on the site, future proofing the Council’s waste collection depot site, the Council’s commercial interest etc.)  The actions for mitigation against these were detailed at section 5 of the report.

 

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources thanked Ms. Parikh and her team, noting the considerable work undertaken.  The disposal would:

 

·         Secure the transfer of the land to LCC (as Highways Authority) saving the Council expenditure for maintenance and ensuring public access would be retained.

·         Generate significant revenue, which would help to support essential services.

·         Provide access for the development of 90 properties, 42 of which were affordable homes.  This would potentially produce additional income from council tax and deliver the Council’s aspirations to provide more affordable homes close to the town centre.

 

During discussion the following points were noted:

 

·         Members thanked Ms. Parikh and Councillor de Burle for their work.

·         The Environment Agency report had provided reassurance in relation to flooding concerns.

·         Members noted that the development represented a £17m investment in the Borough.

·         Members welcomed the prospect of building Melton’s economy and community through job creation and housing delivery, particularly affordable housing, which would help local people onto the ‘housing ladder’ and also noted the potential for additional outdoor public space.

·         Concerning the overage clause within exempt appendix D, members noted that the obligation referred to in the first paragraph was not applicable to the second paragraph.

·         Initial concerns regarding the amount of traffic generated by the site and access to the Council's waste disposal site and allotments had been mitigated (by the road being subject to a maximum speed level and by the road remaining in public ownership).

 

Cabinet:

 

1)    APPROVED the disposal of land (the access road at lake terrace);

 

2)    NOTED the draft heads of terms;

 

3)    DELEGATED authority to:

·         the Director for Growth and Regeneration to make minor amendments to the draft heads of terms;

·         the Director for Growth and Regeneration to complete the sale;

·         the Director for Housing and Communities in consultation with the Portfolio Holder for Housing and Communities to finalise the draft Local Lettings Policy.

 

Reason for the decision

To increase housing supply both by supporting private development and private landlords, and using council assets to build more homes is a key focus area under priority three of the Council’s Corporate Strategy (2020-24).

 

This proposal will enable the development of 90 affordable homes by providing land for access. The Council has not identified any other use for the access road.

 

The recommendation of this disposal is in line with the Council’s approved Disposal Policy.