Issue - meetings

Report of the Director of Planning and Property attached.

Decision made (unanimously):

1.    Cabinet welcomes the decision taken by Planning Committee on 27 August 2020 to approve the application for the development of 15 new homes for affordable rent of the former McKenzie arms site.

2.    Cabinet approves an increase to the capital budget from £2.217m to £2.253m to deliver the scheme and agrees to commit Section 106 commuted sums funding to cover this additional £36k forecast cost.

3.    Cabinet requests that Officers undertake an open procurement route evaluated based on cost, quality and social value for the project which allows for the new affordable housing development achieving the Passivhaus standard which represents the very highest quality in terms of environmental outcomes.

4.    To bring back to Cabinet a further report to approve the contractor to deliver the McKenzie Arms project.

5.    Cabinet requests Officers to explore Homes England funding if a new round of funding becomes available.

6.    Cabinet notes the advice received in relation to the Right to Buy implications and agrees to resolve the issue of a potential overage claim through the purchase of indemnity insurance if required.

7.    Cabinet notes the outcome of the audit in to the original purchase of the McKenzie Arms site.

The Cabinet Member for Finance, Property and Assets presented a report of the Director of Planning and Property bringing forward to Cabinet the proposed development of 15 homes for affordable rent at the former McKenzie Arms site which achieved full planning permission at Planning Committee on 27^th August 2020.

The report sought approval to move to the next stage of the project which included appointing a partner to work with the Council to take the project through to the construction and delivery phase. This will be achieved through the adoption of a suitable procurement strategy. The report also informed the Cabinet how the day to day operation of the new homes at the McKenzie Arms development will be run and managed on an ongoing basis.

The Cabinet Member highlighted the fact that the homes would be social rented housing and that he hoped building would begin early next year.

He also responded to a query about the terms of the development and potential ‘right to buy’. He explained that options such indemnity insurance were being explored to protect the Council from such risks.

Decision made (unanimously):

1.    Cabinet welcomes the decision taken by Planning Committee on 27 August 2020 to approve the application for the development of 15 new homes for affordable rent of the former McKenzie arms site.

2.    Cabinet approves an increase to the capital budget from £2.217m to £2.253m to deliver the scheme and agrees to commit Section 106 commuted sums funding to cover this additional £36k forecast cost.

3.    Cabinet requests that Officers undertake an open procurement route evaluated based on cost, quality and social value for the project which allows for the new affordable housing development achieving the Passivhaus standard which represents the very highest quality in terms of environmental outcomes.

4.    To bring back to Cabinet a further report to approve the contractor to deliver the McKenzie Arms project.

5.    That Cabinet requests Officers to explore Homes England funding if a new round of funding becomes available.

6.    That Cabinet notes the advice received in relation to the Right to Buy implications and to agree to resolve the issue of a potential overage claim through the purchase of indemnity insurance if required.

7.    That Cabinet notes the outcome of the audit in to the original purchase of the McKenzie Arms site.

Reasons for Decision

The development of the McKenzie Arms site represents a key priority within the Council’s revised Corporate Plan which is to deliver an increased number of affordable homes for rent in the South Ribble Borough.

To take the McKenzie Arms project forward, these key decisions needed to be taken by Cabinet.

Alternative Options Considered and Rejected

An alternative option would be to nothing. This was rejected as it would not deliver the Council’s Corporate Plan objectives and would leave the site underutilised. In addition, the Council currently has large sums of Section 106 funding and some of this funding has been committed to delivering the scheme. If this funding is  ...  view the full minutes text for item 131