To approve the Stage 1 submission, and authorise progression into Stage 2 of the development and regeneration programme the development of housing on the former depot and grazing land off Hereford Road, Bromyard (the Bromyard site).

In 2016 Cabinet approved the commissioning of a developer to progress the development of suitable sites in its ownership through a Development and Regeneration Programme (DRP).

The Bromyard site was identified during the procurement of the DRP as a priority project. The site was used as part of the procurement to assess the price elements of the bidders’ final tenders based on a residential development for open market sale.

On 14 December 2017 Cabinet resolved as part of a decision to approve the mobilisation of the DRP that, subject to satisfactory completion of contractual arrangements, the appointed development partner be requested to develop within 3 months of the formal request being made, a stage 1 submission, including a business case and estimated timescales for delivering housing on the Bromyard site

On 24 September 2018 the Programme Director Housing and Growth authorised the issue of a request to Keepmoat Homes, which specified the council’s requirements for a residential development of up to 50 residential units of which 40% will be affordable; these requirements are capable of being further refined as the project moves forward.

On 5 February 2019 planning permission P182239/CD4 was granted for the Bromyard site permitting the  demolition of existing buildings, structures and hardstanding on the site and the erection of 45 dwellings (including affordable housing) and drainage attenuation, open space and associated landscaping and infrastructure works on the Bromyard site.

That:

(a)  the council approves the Stage 1 Submission (appendix 1) for the Bromyard site, provided by Keepmoat Homes under the Development and Regeneration Programme (DRP), and the project be authorised to proceed into stage 2 of the DRP new project approval process with the Project Criteria, for submission by January 2020, being as follows:

1.    A construction specification (the Standard Offer) in line with normal market practice and demand to deliver the scheme approved by Planning Permission (P182239/CD4), subject to other criteria set out here;

2.    To work with the council and Queen Elizabeth High School to agree a design for the pedestrian/cycle link, noting that this link is required by condition 17 of the approved planning permission

3.    In cooperation with the council, as a basis for comparison with Criterion 1, the stage 2 submission will also provide an outline cost of options which makes an enhanced contribution (the Enhanced Offer) to the council’s social, environmental and economic objectives over and above that which would be required by relevant law and/or  conditions applied to the extant planning permission (P182239/CD4) (the Enhanced Offer”) in respect of:

                                          i.    Enhanced environmental sustainability including energy efficiency, transport, protection/enhancement of natural habitats; and/or

                                        ii.    Health and wellbeing of communities and residents;

4.    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.

(b)  a Stage 2 development fee of up to £181,000 be approved for underwriting by the council, subject to the terms of the overarching agreement; and

(c)  a further capital sum of up to £75,000 is approved for drawing down from the development partnership capital budget for council client support to deliver the project, including staff costs, due diligence and financial and legal support.

1.         The purpose of the Stage 2 detailed appraisal work recommended in this report is to ensure that the council is well informed as to the potential opportunities the project delivers. Once that work is complete both the council and its development partner, Keepmoat Homes, have the ability to decide if they wish to proceed with the project, or not. If the decision was not to proceed then the Stage 1 costs specifically identified in paragraph 4 would have to be met by the council, and other options, including offering the site to the market, could be explored at that time.