Agenda item

The Panel will consider an update on the approach to residential development in Huddersfield Town Centre as part of the wider Huddersfield Blueprint including the delivery of Estate Buildings and Somerset Buildings.

Contacts:

Adele Buckley Head of Housing Growth and Regeneration

Estate / Somerset Buildings and Residential Development in Huddersfield Town Centre

The Panel considered an update on the approach to residential development in Huddersfield Town Centre including the delivery of Estate Buildings and Somerset Buildings, as part of the wider Huddersfield Blueprint. The report was presented by Joanne Bartholomew Service Director for Development who highlighted that:

·         The Huddersfield Blueprint was a ten-year vision to create a thriving, modern-day town centre.

·         The Huddersfield Town Centre Living Plan was developed to set out the vision, objectives, opportunities and actions to encourage more people to live in the town centre and contribute to the wider aspirations of the Huddersfield Blueprint.

·         The scale of investment and transformation would improve the attractiveness of the town centre as a place to live.

·         This would provide new opportunities for residential development which in turn, would attract new residents.

·         The initial proposals for residential development in Huddersfield Town Centre would focus on two Council owned assets, Estate Buildings and Somerset Buildings.

·         Cabinet agreed on 5th July 2022 to proceed with the first phase of development and to enter a 12-month exclusivity period (to reach a development appraisal) with Thirteen Group.

·         Thirteen Group (“Thirteen”) was a large developing, not for profit, housing association based in the north east.

·         The Council would be supporting Thirteen group to bring forward their ideas for live and work units in Estate Buildings and Somerset House and how to make the Blueprint vision a reality. 

·         Thirteen were of robust financial standing and had secured a significant grant allocation from Homes England to support them in delivering housing.

·         They also had a strong relationship with Heritage England which was important when working with listed buildings.

·         Thirteen had a strong set of corporate values which aligned with the Council’s priorities.

·         Alongside housing delivery, Thirteen were focussed on the social value that could be brought to the wider district.

In the discussion to follow, the Panel raised questions about the demographic of the residents that the Council hoped to attract to Huddersfield through the delivery of Somerset House and Estate Buildings. The Panel also wanted to know about the timing and availability of the new residential offer in relation to the delivery of the wider Cultural Heart.

In response, Joanne Bartholomew advised that the Council were looking to attract young professionals highlighting the development of the Station to Stadium Enterprise Corridor and the aspiration to increase the opportunities for recruitment to local businesses in this area. Joanne also assured the Panel that Thirteen had an established record of working with businesses to understand the type of residential offer that would be best suited to their target workforce. Responding to the question about the timing and availability, Joanne advised that a large amount of construction work related to the Cultural Heart would be completed alongside the residential developments in the area.

When considering the principle of developing residential housing in the town centre, the Panel wanted to understand more about the impact the ring road had on air quality in this location. The Panel also asked about the financial review process in relation to the cost-of living crisis.

In response, Joanne Bartholomew advised that financial appraisals were anticipated during early 2023 and that, in terms of deliverability, there may be some changes in the market and inflation rates by this time. Joanne also explained that the estate buildings project would not be delivered without leveraging external funding to ensure viability. From a residents perspective, the intension was to introduce an affordable level of rent, but this was dependent on the financial appraisal and affordability review, the details of which could be presented to scrutiny at a later date. 

The Panel noted as per the report that there would be an update presented to Cabinet but highlighted that there were no milestones of delivery or decision points detailed and asked when the financial aspects of the project would be available. Joanne Bartholomew responded to clarify that the exclusivity agreement with Thirteen was to reach a development appraisal. The current exclusivity agreement was not to deliver the project at this stage, and therefore there were no decision points included in the report. Joanne further reassured the Panel that prior to any cabinet decision a time frame would be implemented which would include scrutiny before any decision.

Responding to the Panel’s question around air quality, Simon Taylor, Head of Town Centre Programmes – Development, explained that there were already air quality mitigations and rigorous scrutiny processes to support existing residential properties in Huddersfield town centre. He expressed confidence that this information, alongside previous exsprence could be used to move forward with the new projects. In the longer term, it would be important to create a vehicle strategy, to understand how vehicles travel in and around the town centre to reduce traffic and emissions.

The Panel asked further questions in relation to energy efficient building standards, highlighting that restoring old buildings and making them low carbon could be costly.  The Panel also wanted to know about the potential to connect the new residential buildings to the upcoming District Energy Network.

In response, Joanne Bartholomew acknowledged that there were additional challenges when working with old/listed buildings but reassured the Panel that the Council were working with Thirteen to bring forward the best level of efficient building standards. In relation to the District Energy Network, Joanne explained that a number of key projects within the Huddersfield Blueprint including the Cultural Heart were ready to be connected. However, further work needed to be undertaken in relation to Estate Buildings and Somerset House and it was agreed that a report setting out the various options for the buildings, and the financial viability of those options, would be presented to a future meeting of the Panel.  The Panel further highlighted that climate change should have a higher profile in the Town Centre Living Plan, and it was agreed that a response be made in the next reiteration of the live document.

The Panel wanted to know what mix of provision would be available in both of the buildings. In response, Joanne Bartholomew advised that given the proximity of Estate Buildings to the train station, it was anticipated that graduate/entry level professionals may be the target demographic, whereas Somerset House may lend itself to older residents or small family units. Joanne also highlighted that this was only an initial prediction and the Council had invited Thirteen, to bring their wealth of experience and present their ideas for the buildings. It was also noted that the results of the consultations may further identify a need for a particular type of offer.

The Panel asked a question around the availability of services to match the needs of the demographic of the residents that were anticipated to be living in the town centre noting the principles of the 15-minute neighbourhood model. In response, Joanne Bartholomew agreed that this was important to consider as the proposals developed. 

The Panel asked if there was a need for market testing to ensure that town centre living was still considered a vibrant market following the Covid-19 pandemic. The Panel also wanted to know if a priority was to attract commuters to work in the town centre. In response, Joanne Bartholomew advised that through the residential developments that the aim was for people to be able to call the town centre home and feel that it had a retail and leisure mix that met their needs.  A high quality and well managed offer would ensure a vibrant market and listening to residents was also important. Joanne added that alongside the market for an affordable residential offer, the investment in the Station to Stadium Enterprise Corridor and the University South Gate would help retain young professionals hoping to expand their careers in Huddersfield.

The Panel asked if consideration had been given to providing the right technological facilites in the buildings to enable modern living and attract young professionals.  In response Joanne Bartholomew reassured the Panel that Thirteen’s units were high tech and would enable residents to live in a modern way.

RESOLVED: The Panel noted the Estate / Somerset Buildings and Residential Development in Huddersfield Town Centre update, and it was agreed that:

1.    A report setting out the financial appraisal and the affordability review be provided to the Panel.

2.    A report setting out the various options for the buildings and their financial viability in relation to energy efficient building standards be provided to the Panel.

3.    When developing the type of residential offer alongside the Cultural Heart, it was important to consider the needs of those residents to ensure that the new town centre offer met those requirements through the right mix of services and retail/leisure opportunities. 

4.    The theme of Climate Change would have a higher profile in the next reiteration of the Town Centre Living Plan.