Issue - meetings

Report of the Cabinet Member for Housing and Leisure regarding further consideration of the financial model and approval of the capital expenditure for the implementation of Phase 1, attached.

The report of the Cabinet Member for Housing and Leisure was submitted regarding further consideration of the financial model and approval of the capital expenditure for the implementation of Phase 1 (copy of report circulated with agenda and appended to signed minutes).

The Council agreed to suspend Council Procedure Rules 14.2, 14.5, 14.6, 14.7, 14.8, 14.9 and 16.2:-

(i) to enable the above items to be considered together;

(ii) to enable any amendments to be proposed, seconded and considered at the same time;

(iii) to enable any amendment to be re-introduced later into the meeting.

Amendment moved by Councillor Baillie and seconded by Councillor Hannides:

Add additional recommendations (iv) and (v) as follows:

(iv)  that Council notes that the rationale behind estate regeneration is the poor quality of many of Southampton’s estates, together with significant social, economic, education and health deprivation found on those estates. Council further notes that all the available evidence tells us that only with wholesale estate regeneration will the social, economic, education and health deprivation of those residents be improved on those estates.

(v)  that Council asks Cabinet to note that significant economic and social damage may occur through only offering homes at affordable rent and Cabinet will therefore endeavour to offer a significant number of homes at social rent.

Amended recommendations to read:

(i)  To agree that the HRA capital programme will fund the site preparation costs set out in this report, currently estimated at £11.8M, and:

(a)  To approve a virement of £10.5M from the uncommitted provision for Estate Regeneration, which exists in the HRA capital programme and business plan, and £1.3M from the uncommitted funding for affordable housing in the Housing GF capital programme to establish a specific budget of £11.8M for the regeneration of Townhill Park, the phasing for which is set out in Appendix 1.

(b)  To approve, in accordance with Financial Procedure Rules, capital spending of £3.9M on site preparation costs, including the purchase of leasehold interests, for Phase 1 of the Townhill Park regeneration project phased, £0.5M in 2012/13, £2.0M in 2013/14 and £1.4M in 2014/15.

(c)  To approve, in accordance with Financial Procedure Rules, capital spending of up to a further £3.9M on the purchase of leasehold interests for properties in phases 2 and 3 of the Townhill Park regeneration project phased, £0.5M in 2013/14, £0.8M in 2014/15, £1.4M in 2015/16 and £1.2M in 2016/17.

(ii)  To approve the use of £23.9M of the 30 year HRA revenue surplus to meet the long term revenue costs of the regeneration of Townhill Park, which includes the requirement to repay the debt on the dwellings that have been disposed of from the general HRA revenue balance as there is no net capital receipt to fund this repayment.

(iii)  To agree that the General Fund capital programme will fund the highways infrastructure and open space improvements at an estimated cost of £2.6M with the method of funding this being agreed once the use of the Community Infrastructure Levy  ...  view the full minutes text for item 81

Report of the Cabinet Member for Housing and Leisure Services, seeking approval on the Townhill Park Regeneration Framework Financial Model, Delivery Framework; and funding for the implementation of Phase 1, attached.

DECISION MADE: (Ref: CAB 12/13 8615)

On consideration of the report of the Cabinet Member for Housing and Leisure Services and having received representations from local residents and Members of the Council, Cabinet agreed the following:

(i)  To approve the vision and themes of the Townhill Park Regeneration Framework based on the modified Central Park option and to delegate authority to the Director of Environment and Economy to finalise the Townhill Park Regeneration Framework following consultation with Head of Finance and IT (CFO) and the Cabinet Member for Housing and Leisure and Leader of the Council.

Note: A number of proposals contained in the Framework documents require further study and consultation and these studies and consultation may necessitate some changes to be made to the Framework.

(ii)  To approve in principle the redevelopment of Townhill Park in three phases with the following zones in each phase:

·  Phase 1 comprising zones 1, 33, 34, and 35

·  Phase 2 comprising zones 9, 11 (redevelopment), 12,19 20, 27 and  28

·  Phase 3 comprising zones 13, 14, 17, 24, 29, 30, and 25

including additional associated open space and highways improvements incorporated in the proposals and to delegate authority to the Director of Environment and Economy, following consultation with the Head of Finance and IT (CFO) and the Cabinet Member for Housing and Leisure, to amend Phases, to move or amend zones within phases, todecide the extent of improvements and when to implement the additional open spaces and highways improvements incorporated in the proposals.

Note Zone 33 is now proposed in Phase 1 and Zone 25 in Phase 3

Further public consultation is planned in the next couple of months with residents of Phase 1, prior to a firm decision on proposals for this site.

(iii)  To note that further consultation will be carried out, starting in August 2012, with residents affected in phase 1 , and residents affected by the proposed new road, and reported back to Cabinet

(iv)  To agree to recommend to Council that the HRA capital programme will fund the site preparation costs set out in this report, currently estimated at £11.8M, and to recommend that Council approve a virement of £10.5M from the uncommitted provision for Estate Regeneration, which exists in the HRA capital programme and business plan, and £1.3M from the uncommitted funding for affordable housing in the Housing GF capital programmeto establish a specific budget of £11.8M for Townhill Park, the phasing for which is set out in Appendix 1.

(v)  To note that the HRA will be required to incur further capital expenditure to acquire the 450 units of social housing, provision for which has been included in the 30 year HRA Business Plan projections for these proposals, but with the timing dependent on the final details of the development agreement and subject to future Cabinet/Council approvals.

(vi)  To note that the General Fund capital programme will be required to fund highways infrastructure, open space improvements and replacement community facilities where appropriate,  ...  view the full minutes text for item 36