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Waverley Borough Council Committee System - Committee Document

Meeting of the Community Overview and Scrutiny Committee held on 10/09/2002
Kilnfields Redevelopment Scheme - Contract Report



The purpose of this report is to update members on the preparations for the scheme and to seek approval for the relevant actions to enable the scheme to be progressed.

The report is divided into the following sections:-

(1) Overview of the position to date and the parties involved

(2) The finalised layout

(3) The planning permission

(4) The Guaranteed Maximum Price

(5) Risk analysis

(6) The resale covenant

(7) Scheme Funding

(8) Capital Receipts

(9) Contracts and Agreements


A scheme appraisal prepared by the Council’s project advisor, the Airey Miller Partnership, is enclosed as a separate document and sets out the following: -

(a) Proposals for the estate

(b) Current position

(c) Risk assessments

(d) Capital receipts and Options appraisal

(e) The Financial Appraisal

(f) Summary and Recommendations

As the Council’s Project Advisor on this scheme, it is Airey Miller’s responsibility to advise your officers on the overall financial viability and the associated risks to the Council of the proposed regeneration. Where necessary, reference will be made to Airey Miller’s report. This document is marked ‘Confidential’.

The scheme as proposed meets Housing, Leisure and Planning Strategic Objectives.

There are significant financial, environmental, crime and disorder, safety and equal opportunities implications detailed in this report.
APPENDIX K

WAVERLEY BOROUGH COUNCIL

COMMUNITY OVERVIEW AND SCRUTINY COMMITTEE
10TH SEPTEMBER 2002



Title:
KILNFIELDS REDEVELOPMENT SCHEME-CONTRACT REPORT
[Ward Affected: Haslemere North and Grayswood]


Note pursuant to Section 100B(5) of the Local Government Act 1972

The attached Annexes, including the separate Airey Miller document, contain exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 9 of Part I of Schedule 12A to the Local Government Act 1972 viz:-

Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services.



Summary and Purpose

The purpose of this report is to update members on the preparations for the scheme and to seek approval for the relevant actions to enable the scheme to be progressed.

The report is divided into the following sections:-

(1) Overview of the position to date and the parties involved

(2) The finalised layout

(3) The planning permission

(4) The Guaranteed Maximum Price

(5) Risk analysis

(6) The resale covenant

(7) Scheme Funding

(8) Capital Receipts

(9) Contracts and Agreements


A scheme appraisal prepared by the Council’s project advisor, the Airey Miller Partnership, is enclosed as a separate document and sets out the following: -

(a) Proposals for the estate

(b) Current position

(c) Risk assessments

(d) Capital receipts and Options appraisal

(e) The Financial Appraisal

(f) Summary and Recommendations

As the Council’s Project Advisor on this scheme, it is Airey Miller’s responsibility to advise your officers on the overall financial viability and the associated risks to the Council of the proposed regeneration. Where necessary, reference will be made to Airey Miller’s report. This document is marked ‘Confidential’.

The scheme as proposed meets Housing, Leisure and Planning Strategic Objectives.

There are significant financial, environmental, crime and disorder, safety and equal opportunities implications detailed in this report.



Introduction

This section provides an overview of the position to date and the parties involved in developing these regeneration proposals.

The original proposal to redevelop the Kilnfields Estate was formulated and agreed by the Council in August 1998 after it was discovered that the costs of a much needed refurbishment of the properties, which included asbestos removal, were likely to be as much as the equivalent cost of rebuilding the properties as new.

It was clear also that the actual space on the estate was underused and there was an opportunity available to not only build new properties for the existing residents, but to provide more affordable housing to meet the local need in Haslemere.

PRP Architects were engaged in late 1998 to carry out a feasibility study and subsequently an exhibition and consultation exercise was held in December 1999 to enable residents of Kilnfields and the wider High Lane estate area to comment on their preferred options.

Taking all the ideas that were put forward, a layout was devised which made provision for 81 new houses, a new pavilion and a refurbished and landscaped recreation area.

In subsequent discussion the principle of the layout was welcomed by residents, Haslemere Town Council and this Council and, in February 2001, the Executive gave approval for the detailed preparations to begin, having agreed a preliminary financial model.


It was agreed that there would be a replacement of all of the Council’s current rented properties, the re-provision of units for the owner-occupiers, the provision of 20 units for shared ownership by Thames Valley Housing Association and the balance to be for open market sale.

To enable funding of the scheme to be as economic as possible, the concept of a mixed development was conceived where parts of the site and the associated vacant site at Weycombe Road would be developed for private sale. The receipts generated would then be used to offset the costs of providing social housing and area regeneration.

The concept of providing a mix of houses for rent, shared ownership and for sale is complex and it was considered that if the scheme was to run smoothly then a specialist team needed to be assembled to run the project in accordance with the Council's Contract Strategy.

The appointment of the Airey Miller Partnership as Project Advisor and Employers Agent in September 2001, provided the basis for building a team which included PRP Architects, Thames Valley Housing Association, a housing management consultant to be appointed and representatives of the Housing and Environment and Leisure Departments as well as representatives from the Legal Services Section and Finance Department.

An important ingredient was to appoint the contractor partner at an early stage so that co-operation on economical design would be an integral part of the preparation process. The appointed contractor, Lovell’s, was selected by the Executive on 4th December 2001 and has now been working in close co-operation with the core working group since mid-December 2001.

Consultation with and co-operation from the residents on the estate is the key to enabling the project to smoothly progress. To supplement the technical team, a housing management consultant was appointed early in January 2002.

Planning Permission

The planning application was submitted in May 2002.

Full planning permission was granted by the Southern Area Development Control Sub-Committee on 21st August 2002.

Housing, Planning and Regeneration Issues

The Council agreed in August 1998 to pursue the redevelopment of Kilnfields and the adjacent recreational facilities rather than simply refurbish the existing Council houses as additional housing could be provided, as long as there was a minimal cost to the Council.

As outlined earlier in the report, the Council proposals agreed to date increase the total housing provision of 81 homes with nearly double the existing 47 homes.

The provision of social affordable housing by means of 20 additional shared ownership homes by Thames Valley exceeds the 30% affordable housing provision in the Local Plan.

The current housing position in Haslemere is as follows:-

The family housing stock in Haslemere comprises 15% of the Borough’s total of family housing. In 2001/02, however, only 10% of the family housing lettings were in Haslemere. There are two homeless hostels in Haslemere and current waiting periods for a move from temporary accommodation exceed 2 years.

The Regeneration Scheme, as proposed, has been subject to extensive consultation, particularly with residents, and has now been approved by the Southern Area Development Control Sub-Committee as mentioned above. The scheme would create a mixed and balanced community capable of meeting current and future needs, with opportunity for further asset enhancement.

All other details (including the recommendations) are contained in the (Exempt) section of the report as these are mainly of a financial and contractual nature.



CONTACT OFFICERS:

Name: Mr D January Telephone: 01483 523361
E-mail: djanuary@waverley.gov.uk

Name: Mr D Simmons Telephone: 01483 523374
E-mail: dsimmons@waverley.gov.uk


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