To enter into a development agreement to provide student accommodation on the station approach site.

The leader of the council welcomed the principal and the president of the student union from Herefordshire College of Arts (HCA) and the project lead for finance and accommodation from NMiTE.

The cabinet member contracts and assets introduced the item. He noted that:

·        the proposed accommodation block would provide for students from HCA and NMiTE;

·        the project would be part of the development regeneration programme (DRP) with partner Engie Regeneration Ltd;

·        HCA did not currently have a high quality campus where students could live together, this project would address this and support planned growth in student numbers;

·        the recommendations in the report supported the September 2020 opening target;

·        the level of demand had been validated and feedback from potential investors had been positive, with the approval of cabinet it was intended to move into negotiations with a preferred funding partner early in 2019;

·        the preferred route for funding was to have an external partner but the recommendations put forward allowed for the council to provide funding if required.

In discussion of the item it was noted that:

·        there had been great interest from potential funding partners with four interested parties to date, due diligence checks would be carried out to confirm whether any or all of these could be taken forward;

·        it was possible for the council to deliver the project itself and there was some support for this option but it was acknowledged that the council had finite resources to invest and that attracting external investment would allow the council to recycle its investment into other much needed projects;

·        the council should pump prime sites which were not viable for private investors, as there was interest from private investors for this scheme, the council should act as a facilitator only;

·        there was support and demand for higher education opportunities in Herefordshire which this project would support;

·        the reduction in parking spaces at the front of the train station would be mitigated by ensuring that there were sufficient alternatives within a 5-10 minute walk and in the longer term by a review of parking.

Group leaders were invited to give the views of their group. There was general support for the principle of the project and the educational institutions involved. Other points made were:

·        that the building and its setting should be attractive as it was to be located in a prominent site and aim for high environmental standards in its construction;

·        the design should be flexible so that the building could be repurposed in future if needed;

·        the projected growth in the student population would likely give a boost to the night time economy and it was hoped that this would not lead to tensions;

·        the proposed timetable was tight and there might be other constraints on the site not yet identified;

·        the project must demonstrate a sound business case and return for the council;

·        the council should focus on projects to support vulnerable people such as developing sites for affordable housing.

The ward councillor expressed support for  ...  view the full minutes text for item 31