Agenda item

This report seeks approval to include new council housing as part of the ongoing project to demolish and replace Ordnance Lane homeless hostel. It identifies opportunities for potential cost savings by including a development of up to 24 new council flats as part of the contract to build the new temporary homeless accommodation.

Resolved:  That the Executive agree to:

(i)           Approve the development of new council housing at Ordnance Lane. 

(ii)          Approve the appointment of the contractor who is selected from the OJEU compliant tender process to build the new temporary homeless accommodation at Ordnance Lane to also build up to 24 new council homes should:

·     the cost be within the anticipated budget for traditional build as identified in this report or;

·     if the benefits of a single contract and planning permission mitigate any additional cost

      This decision to be delegated to the Directors of Communities and Neighbourhoods and Customer and Business Support.

(iii)        Delegate authority to the Director of Communities and Neighbourhoods in consultation with the Executive Member for Housing and Safer Neighbourhoods to agree the inclusion of an element of market housing should it be considered appropriate to cross fund the development or create mixed sustainable communities.

(iv)        Recommend a future report is brought to the Executive which considers options for a range of different delivery and funding models and potential land acquisitions for building new council housing.

(v)         Re-examine the proposals for the Newbury Avenue, Acomb site, listed at Table Two of the report, to allow full consultation with Ward Members and local residents.

Reason:  (i)   To allow the council to add a significant number of homes to its existing asset base and help to alleviate the acute housing need in the city.

(ii)   There is an on-going OJEU compliant tender process to appoint a contractor to design and build a new 39 unit temporary homeless accommodation scheme at Ordnance Lane (with returns due back in August). As part of this tender process, an alternative lot has been invited to build both the homeless accommodation and provide new council housing on the remainder of the site. Should the cost of building that new council housing through this route represent value for money it will allow the appointment of a single contractor to build both schemes with associated advantages, such as a single planning application, reduced delivery timescale and minimising the disruption of a phased development.

(iii)  To ensure a mix of tenures to create a mixed and sustainable community and to provide cross subsidy to help fund the delivery of council homes.

(iv) To ensure new council housing is delivered in the most effective way possible.

(v)     In order to allow a re-examination of the scheme in light of residents concerns.

Members considered a report which sought approval to include new council housing as part of the ongoing project to demolish and replace Ordnance Lane homeless hostel. The feasibility analysis of the site had shown that, in addition to the new homeless scheme the site could also accommodate a development of up to 24 new flats. It was noted that if the same contractor was appointed for both developments under a single contract this would provide significant development and cost saving benefits.

The Executive Member presented the report and outlined the advantages arising from a single contract for the development. He also drew attention to the status of the current building programme approved in May 2013, set out at table two of the report. In particular he highlighted residents concerns in relation to the proposed new council house building on the Newbury Avenue, site in Acomb. Therefore, in order allay their concerns, he recommended a re-examination of the proposals for the site and further consultation.

Following discussion consideration was given to the following

options:

Option 1 – To approve the recommendations in this report for the use of £3.6m to develop up to 24 new council flats at Ordnance Lane to be built as one scheme under a single contract with the temporary homeless accommodation.

Option 2 – To approve the use of £3.6m to develop up to 24 new council flats at Ordnance Lane as a separate phase to the temporary homeless accommodation

Option 3 – To not develop new council housing on the remainder of the Ordnance Lane site.

Resolved:  That the Executive agree to:

(i)           Approve the development of new council housing at Ordnance Lane. 

(ii)          Approve the appointment of the contractor who is selected from the OJEU compliant tender process to build the new temporary homeless accommodation at Ordnance Lane to also build up to 24 new council homes should:

·     the cost be within the anticipated budget for traditional build as identified in this report or;

·     if the benefits of a single contract and planning permission mitigate any additional cost

      This decision to be delegated to the Directors of Communities and Neighbourhoods and Customer and Business Support.

(iii)        Delegate authority to the Director of Communities and Neighbourhoods in consultation with the Executive Member for Housing and Safer Neighbourhoods to agree the inclusion of an element of market housing should it be considered appropriate to cross fund the development or create mixed sustainable communities.

(iv)        Recommend a future report is brought to the Executive which considers options for a range of different delivery and funding models and potential land acquisitions for building new council housing.

(v)         Re-examine the proposals for the Newbury Avenue, Acomb site, listed at Table Two of the report, to allow full consultation with Ward Members and local residents. ^1.

Reason:  (i)   To allow the council to add a significant number of homes to its existing asset base and help to alleviate the acute housing need in the city.

(ii)   There is an on-going OJEU compliant tender process to appoint a contractor to design and build a new 39 unit temporary homeless accommodation scheme at Ordnance Lane (with returns due back in August). As part of this tender process, an alternative lot has been invited to build both the homeless accommodation and provide new council housing on the remainder of the site. Should the cost of building that new council housing through this route represent value for money it will allow the appointment of a single contractor to build both schemes with associated advantages, such as a single planning application, reduced delivery timescale and minimising the disruption of a phased development.

(iii)  To ensure a mix of tenures to create a mixed and sustainable community and to provide cross subsidy to help fund the delivery of council homes.

(iv) To ensure new council housing is delivered in the most effective way possible.

(vi)       In order to allow a re-examination of the scheme in light of residents concerns.