To approve the scope and cost of the first stage of appraisal services to be provided by the council’s developer partner, Engie Regeneration, in respect of the project to deliver student accommodation at Station Approach.

The council has entered into an overarching agreement with Engie Regeneration, a developer, for a programme of development and regeneration over the next 10 years and potentially beyond. In accordance with that agreement, the developer partner will be commissioned to develop a project through the mechanism of a “New Project Request” and will progress the project in “Stages”.

Cabinet has identified the provision of student accommodation at a council-owned site at Station Approach as a priority project and on 27 July 2017 resolved to bring the project forward for consideration as part of the development and regeneration programme, subject to the council reaching a successful conclusion on the contract negotiations to enter into the overarching agreement, which was achieved in June 2018.

The New Project Request specifies the council’s initial requirements and its criteria for the development, which can be refined as the project moves forward.

The developer partner has estimated the cost of the Stage 1 appraisal services which include the initial development of the business case and detailed designs for the scheme. These costs are required to be underwritten by the council as specified in the overarching agreement.

That:

(a)  The project be confirmed in the development and regeneration programme as part of the council’s development partnership with Engie Regeneration Ltd;

(b)  the following Council Criteria for Stage 1 of the Station Approach student accommodation project be approved:

                      i.        A student accommodation block of up to 220 units;

                    ii.        A design and specification in line with normal market practice and demand, subject to other criteria set out here;

                   iii.        A design which is Equality Act compliant and which respects the requirements of students with diverse needs and promotes the wellbeing of all its residents;

                   iv.        To achieve the earliest possible completion date to align with the commencement of an academic year;

                    v.        To develop the project in liaison with higher education and further education providers identified by the council including Hereford College of Arts and NMiTE;

                   vi.        To identify funding options for the project;

                  vii.        To identify options for the asset management of the accommodation;

                viii.        To identify ways to provide active frontage and a commercially viable amenity on the ground floor;

                   ix.        To work with the council to help replace car parking spaces impacted by the scheme;

                    x.        To provide a scheme which meets the requirements of BREEAM (Building Research Establishment Environmental Assessment Method) Good or above;

                   xi.        To provide the council with options for the project to make an enhanced contribution to environmental sustainability, over and above that which would be required by relevant law or existing planning policy;

                  xii.        To work with the Council to develop the evidential framework by which the Stage 2 Submission can be assessed against the Council’s requirement to demonstrate best value and meet all other relevant legal obligations.

(c)  a Stage 1 Development Fee of up to £351k be approved with a contingency of 20% (£70k) to be released, if required, by the Director for economy, communities and corporate; and

(d)  A further capital sum of £50k is approved for drawing down from the Development Partnership capital budget in order to support the council in delivering Stage 1 of the project, including the covering of staff costs and potential contingency against the Stage 1 development fee.

1              The council could choose not to proceed with the project. This would mean that the council would not be able to offer student accommodation to local higher education providers in Herefordshire, in this case, the Hereford College of Arts and the new university, NMiTE.

2              The land could be made available to the Hereford College of Arts to develop the facility with the council taking the capital from the sale of the land. However, the college do not have the resources, the capital, or the capability to do this.

3              We could sell the land to a developer with the expectation that they work with the college to develop student accommodation. Once the land has been sold, however, neither the council nor the college would be able to control development on the site.