Agenda item

(a)  That it be noted that SRP has substantially amended its operating model to allow the development of HRA and General Fund sites with a works cost that exceeds £75,000.

(b)  That the Small Sites Development Strategy be agreed to be delivered via SRP.

(c)  That it be agreed that Council officers should proceed on the basis that the sites at Upton Road and Alpha Street will be disposed to and developed by Slough Regeneration Partnership, subject to Cabinet approval for a sum that represents no less than the best value valuation.

(d)  That the initial list of sites and outline programme for the Strategy, as set out in Appendices One and Two of the report, be agreed.

(e)  That an update report be provided to Cabinet in March 2016.

The Assistant Director Assets, Infrastructure and Regeneration introduced a report updating Commissioners on the proposal that the Slough Regeneration Partnership (SRP) bring forward a package of smaller residential development sites across the borough.

The Cabinet had previously agreed to explore the potential of developing such sites of under 20 units through a Subsidiary Housing Company (SHC), and it was noted that the SRP had subsequently amended their operating model to allow for the development of such sites.  Both options had been considered and delivered significant returns on investment of 25% per annum via the SHC and 18% via the SRP.  A financial options appraisal included in the Part II Appendix One to the report was considered without disclosing any exempt information.

The risks of the SHC option were substantially higher in terms of internal capacity, possible commercial losses and negative press.  Through Morgan Sindall Investments as the Development Manager, the SRP would have the expertise in terms of commercial development, supply chain and construction management and sales and after sales skills to successfully bring forward the package of sites included in the programme.  This would reduce the risk to the Council and allow officers to focus on key regeneration schemes.  It was therefore recommended that sites be developed through the SRP in line with the operating model set out in section 5 of the report.

Commissioners welcomed the progress that had been made in bringing forward a proposal which could deliver 24 homes for sale and approximately 113 affordable housing across 34 sites by the end of 2017 and agreed that delivery through the SRP provided the most appropriate balance between risk and financial return.  It was emphasised that the model was to develop a package of sites, as set out in Appendix Three, and that the most commercially viable sites could not be ‘cherry picked’.  The Cabinet agreed that the Small Sites Development Strategy would be delivered via the SRP and that an update report be received in March 2016.

Resolved –

(a)  That it be noted that SRP has substantially amended its operating model to allow the development of HRA and General Fund sites with a works cost that exceeds £75,000.

(b)  That the Small Sites Development Strategy be agreed to be delivered via SRP.

(c)  That it be agreed that Council officers should proceed on the basis that the sites at Upton Road and Alpha Street will be disposed to and developed by Slough Regeneration Partnership, subject to Cabinet approval for a sum that represents no less than the best value valuation.

(d)  That the initial list of sites and outline programme for the Strategy, as set out in Appendices One and Two of the report, be agreed.

(e)  That an update report be provided to Cabinet in March 2016.