Agenda item

Agenda item

Northern Gateway Implementation and Delivery

The report of the Strategic Director (Development) is attached

Minutes:

A report submitted by the Strategic Director (Development) set out details of the Phase 1 Implementation Strategy for the Northern Gateway. It explained that the Council had entered into a joint venture with the Far East Consortium (FEC) in April 2017 for the comprehensive redevelopment of the Northern Gateway for housing and ancillary development. As part of the delivery arrangements, the Council and FEC had established a joint venture (JV) company, Northern Gateway Operations Limited (OpCo),to have strategic input into and oversight of the development of the Northern Gateway area.

 

It was reported that the Government’s Housing Infrastructure Fund (HIF) had been identified as the most significant potential source of funding that could be utilised to support a range of investment within major infrastructure projects to help accelerate and unlock housing delivery in the Northern Gateway. Making a bid for money from the fund was proposed and supported. That money could be directed toward physical infrastructure to support new and existing communities or toward land acquisition in order to accelerate the creation of place and housing delivery.

 

The report explained that Council Officers had been working on a feasibility study and outline phasing strategy for the delivery of up to 530 new homes in the Collyhurst neighbourhoods, of which up to 130 were to be built for social rent resulting in at least 20% of the new build housing being affordable. The process to be followed to identify the possible sites for those developments was agreed.

 

It was noted that the potential upfront costs associated with acquiring sites for future development had meant that the JV partners had explored opportunities for a co-investment arrangement with the Council. It was now anticipated that this co-investment in land assembly would be in the form of a commercial loan from the Council, set at a rate of interest acceptable to both parties and which would be State Aid compliant. The principle of using such an approach was endorsed. The terms of that loan were to be the subject of a report to a further meeting.

 

Decisions

 

1.         To note the contents of the report and the progress being made to establish appropriate governance and implementation arrangements to secure the delivery of the Northern Gateway initiative.

 

2.         To note that the City Council has submitted an Expression of Interest for the Northern Gateway to be designated for inclusion within the Government’s Garden Communities Programme and request that a further report is brought back to a future meeting once the outcome of this submission is known.

 

3.         To note the update provided in relation to the progress being made in developing an application for Housing Infrastructure Fund to support the delivery of the Northern Gateway initiative.

 

4.         To delegate authority to the Deputy Chief Executive and City Treasurer and the Strategic Director (Development) to finalise and submit the Housing Infrastructure Fund application to the Ministry of Housing, Communities and Local Government by the deadline of 22 March 2019 and to request that a further report on the outcome of this bid is brought to a future meeting of the Executive, together with any proposals for the investment of any funding that is secured.

 

5.         To note the intention to deliver an early phase of development within Collyhurst as well as on the edge of the City Centre

 

6.         To delegate authority to the Strategic Director, Development in consultation with the Executive Member for Housing and Regeneration and local elected members to identify appropriate locations for the delivery of up to 530 new homes, including up to 130 new Council Houses, within the Collyhurst neighbourhood so that detailed consultations can be undertaken with the local community to draw up proposals for a detailed funding and delivery plan, for consideration by a future meeting of the Executive.

 

7.         To note the intention to prepare a costed schedule of place-making interventions for the Phase 1 development area which will be used by the Local Planning Authority as the basis for negotiating Section 106 developer contributions. All developments will be expected to provide Section 106 contributions towards the provision of identified place-making activities.

 

8.         To note the progress being made in assembling land to deliver the objectives of the Northern Gateway programme.

 

9.         To delegate authority to the Deputy Chief Executive and City Treasurer and the City Solicitor, in consultation with the Executive Member for Finance and Human Resources to negotiate the terms of a commercial loan between the Council and Far East Consortium (FEC) to support land acquisition as part of the Joint Venture programme, noting that approval of the loan would be subject a decision by the Council.

 

 

10.       To delegate authority to the City Solicitor to enter into and complete all documents or agreements necessary to give effect to the decisions above.

 

 

Supporting documents: