Agenda item

Further to Minute 84 (27 January 2015), The Cabinet Member for Regeneration and Social Housing presented a report on the redevelopment of 263-285 Rainham Road North and 291-301 Oxlow Lane, which comprised 17 properties, of which 12 were occupied by Council tenants and five by leaseholders.

The existing tenants had been consulted on the development proposal and the vast majority of residents who provided feedback were supportive of the option to comprehensively redevelop the site. It was intended that vacant possession should be achieved through discussion and agreement with the tenants and leaseholders, although the use of the Council’s compulsory purchase powers could be required as a last resort.

Cabinet resolved to:

(i)  Approve the proposed redevelopment of 263-285 Rainham Road North and 291-301 Oxlow Lane, RM10 7NJ, as shown edged red in the plan at Appendix 1 to the report, having considered the outcomes of the consultation with affected residents as summarised in section 2 and Appendix 3;

(ii)  Agree the service of Initial Demolition Notices on all secure tenants at the affected properties at the appropriate time, in order to suspend the requirement for the Council to complete Right to Buy applications for as long as the notices remain in force and delegate approval and timing of final notices to the Director of Inclusive Growth, in consultation with the Director of Law and Governance;

(iii)  Approve in principle to the use by the Council of its Compulsory Purchase Order (CPO) making powers, should they prove necessary to facilitate the future redevelopment of the site;

(iv)  Approve in principle the appropriation of the land, as shown edged red in the plan at Appendix 2 to the report, under Section 122 of the Local Government Act 1972 from the Housing Revenue Account to the General Fund;

(v)  Agree to allocate £2,243,000 from the Investment & Acquisition Budget to fund the pre-development costs:

(vi)  Agree the inclusion of the project in the Council’s Capital Programme in the total sum of £15,484,000 subject to securing planning permission and procurement of a contractor in accordance with the project outputs and budget;

(vii)  Agree in principle the funding strategy set out in section 4 of the report, including borrowing up to £10,203,000 within the General Fund from the Public Works Loan Board, to finance the development and ownership of the affordable rent homes via a loan agreement made between the Council and any suitable vehicle that the new units may be held in (e.g. a new B&D Reside Registered Provider or other Reside vehicle);

(viii)  Delegate authority to the Director of Inclusive Growth, in consultation with the Chief Operating Officer, the Director of Law and Governance and the Cabinet Members for Finance, Performance and Core Services and Regeneration and Social Housing, to determine the final arrangements and agree the contract and ancillary legal documents to fully implement and effect the proposals set out in the report; and

(ix)  Authorise the Director of Law and Governance to execute all the legal agreements, contracts and other documents on behalf of the Council.