Issue - meetings

To receive an update on Estate Buildings and give consideration to the proposed delivery approach with a development partner.

Contact: Liz Jefferson, Housing Growth

RESOLVED –

1) That approval be given to the proposed delivery approach for Estate Buildings.

2) That approval be given to the disposal of the site at ‘less than best consideration’ to the preferred partner when appointed in accordance with the General Disposal Consent (England) 2003.

3) That authority be delegated to the Executive Director (Place), in consultation with the Service Director (Legal, Governance and Commissioning) and the Cabinet Member (Finance and Regeneration) to negotiate and agree the terms of disposal for the site with the preferred development partner and determine the appropriate level of discount for the site following a comprehensive assessment of the appointed partner’s development viability appraisal reflecting the housing mix which receives planning consent (which may likely be market housing but could include some affordable housing).

4) That authority be delegated to the Service Director (Legal, Governance and Commissioning) to enter into and execute any agreement and other ancillary documents necessary to dispose of the site to the preferred partner for housing, reflecting the housing mix which receives planning consent.

(Under the provision of Council Procedure Rule 36(1), Cabinet received a representation from Councillor Scott).

Cabinet received a report which set out an update on the residential development of estate buildings, and sought approval for a proposed delivery approach with a delivery partner. The report advised that the development of this landmark building, which was in a strategic town centre location, would support the delivery of the Huddersfield Blueprint. It explained that Estate Buildings had been identified as a Council asset to provide a high quality housing product that was well located to provide residents with access to local jobs and close proximity to rail links.

Cabinet were advised that, due to the heritage value of the site, the cost of development would be significant and there would be a viability gap which would need to be filled through external funding. It was therefore recommended that a competitive sale exercise is conducted to appoint a delivery partner, which would enable the Council to retain a level of control over the quality of the development while benefitting from the funding of a private sector delivery partner. It was noted that the disposal approach would support transferring the asset of the Council’s ownership into the private sector, and would contribute to savings by reducing the costs of retaining the asset. Cabinet were advised that, due to the significant viability gap associated with bringing this site forward it is likely that the site would need to be disposed of at ‘less than best consideration’. It was noted that the recommendation would enable the appointment of a development partner who would enter into a building lease to bring forward the building for residential use, and that the appointment of the preferred partner would be scheduled for February 2026.

RESOLVED –

1) That approval be given to the proposed delivery approach for Estate Buildings.

2) That approval be given to the disposal of the site at ‘less than best consideration’ to the preferred partner when appointed in accordance with the General Disposal Consent (England) 2003.

3) That authority be delegated to the Executive Director (Place), in consultation with the Service Director (Legal, Governance and Commissioning) and the Cabinet Member (Finance and Regeneration) to negotiate and agree the terms of disposal for the site with the preferred development partner and determine the appropriate level of discount for the site following a comprehensive assessment of the appointed partner’s development viability appraisal reflecting the housing mix which receives planning consent (which may likely be market housing but could include some affordable housing).

4) That authority be delegated to the Service Director (Legal, Governance and Commissioning) to enter into and execute any agreement and other ancillary documents necessary to dispose of the site to the preferred partner for housing, reflecting the housing mix which receives planning consent.