Decision details

To approve, in accordance with Financial Procedure Rules, additional expenditure of £850,000 to carry out the necessary design development to submit a detailed planning application for a new build scheme and tender the works contract for Woodside Lodge and 536-550 Wimpson Lane.  Provision for this exists within the Estate Regeneration & New Build section of the HRA Capital Programme.

1.  On 18th November 2015, Cabinet approved, in principle, to develop both Woodside Lodge and the adjacent site at 536 – 550 Wimpson Lane.  All buildings (other than the slab) have since been demolished. 

2.  It was noted that the Integrated Commissioning Unit had identified that demand for specialist and older persons housing will continue to grow due to demographic factors and a modern scheme where care and support can be efficiently provided to a larger number of residents with multiple care and support needs will help provide a cost effective alternative to high cost residential care provision, support independence and help to deliver improved health and social care outcomes.

3.  It was also noted that there is also a continued need for smaller general needs accommodation which combined with specialist and older person’s accommodation would create a greater mix of community feel and allow for general needs housing to be able to flex its support locally as needed. These sites provide an ideal opportunity to develop homes to meet these varied housing needs.

4.  An initial budget of £500,000 was approved in order to commence feasibility work on the scheme.  Approximately £350,000 of this budget has already been spent on site security and demolition.  This early spend on demolition was desirable in order to retain Right to Buy (RTB) monies.

5.  It is now necessary to commission a variety of site surveys, specialist advice and consultancy services in order to work the scheme up for planning.  The value of these commitments has been estimated at up to £850,000 beyond the previously approved budget.

6.  Much of the work arising from these commissions is necessary to collate a well-informed cost estimate and scheme delivery timetable.  It will also allow formulation of a forward thinking approach to a design, heating and ventilation solution for replication on future large flatted schemes to be developed by the Council.

7.  An up-to-date revised project cost estimate has been calculated (July 2016) putting the current build cost at just under £19m.  Allowing for on costs assumed at 15%, this means a total capital budget of £21.85m should be put aside in order to deliver the project.  However, the budget allocation recommended for approval in this report will enable a more accurate estimate to be formulated and presented for approval.

8.  If agreed, a further report will come to Cabinet during the last quarter this financial year setting out the full capital budget and timescale for the project, by which time it is anticipated that tenders will have been returned so accurate project costs and timings can be presented.

At this stage, the previous accommodation on the site has been decanted and the buildings demolished.  Without the additional expenditure sought in this report, the scheme design and specification cannot be worked up in sufficient detail to produce an accurate and reliable project cost and timescale.  It is intended that the mechanical and electrical elements of this scheme be designed as a forerunner to other large flatted blocks to be delivered in the City, so it is important that the appropriate investment of time and expertise is made in the design development.