Agenda item

That the outcome of the feasibility work on the Gorse Ride estate be noted and the following be approved:

1)         the rehousing of tenants and acquisition of owner occupied homes and the subsequent demolition and redevelopment of the Gorse Ride estate (comprising all properties in Billing Avenue, Dart Close, Firs Close, Orbit Close and Whittle Close (excluding numbers 19 to 26), as well as, Gorse Ride South (numbers 8 – 42, even numbers only);

2)         the indicative development brief for the regeneration project;

3)         the proposed funding model, including the allocation of £28,015,683 Section 106 receipts (for the provision of affordable housing) towards the regeneration project and up to £2m from the Housing Revenue Account (HRA) for statutory compensation payments to tenants, in accordance with the Part 2 Report; 

4)         the selection of Wokingham Housing Limited (WHL) as the development partner for the regeneration project and Loddon Homes Limited as the end landlord for the new homes;

5)         that tenants living in the affected homes will be offered a new home on the regenerated estate on a lifetime assured tenancy with broadly similar terms to their current Council tenancy;

6)         that homeowners living in the affected homes will be offered a range of options to enable them to purchase alternative housing, including the option to buy a new home on the regenerated estate (or potentially off-site) with financial support where needed through an equity loan scheme (or similar); 

7)         that the Council transfers the site to Loddon Homes Limitedon terms to be agreed by the Director of Corporate Services in consultation with the Leader of the Council and Lead Members for Adult Services and Finance;

8)         that the Director of Corporate Services, in consultation with the Lead Members for Adult Services and Finance, can agree the terms and sign off the acquisition of homes required for the project;

9)         that the site is appropriated for planning purposes under Section 227 of the Town and Country Planning Act 1990 and Section 122 of the Local Government Act 1972;

10)       that the transfer of land and funding for the regeneration will be subject to WHL securing a planning consent for the scheme and the necessary Board approvals.

The Executive considered a report relating to the outcome of the feasibility work on the Gorse Ride estate, a residential area of Finchampstead, Wokingham, and the proposals for the redevelopment of that estate.

The Executive Member for Adults’ Services reminded the meeting that in March 2017 the Executive had agreed the intent to regenerate the Gorse Ride estate and as a result of that decision various technical studies, feasibility, masterplanning and community engagement work had been undertaken. 

Councillor Dolinski highlighted the commitment to the redevelopment project of £28m funding from S106 commuted sums for affordable housing with the remainder coming from company borrowing and capital receipts from private shared ownership sales.  He also highlighted that Loddon Homes would be the end landlord for the new homes and Wokingham Housing Limited would act as the development partner.

In response to a query by the Executive Member for Finance, regarding whether there was any financial uplift included to take account of inflation, Councillor Dolinski confirmed that a 3.5% uplift for inflation had been included.

Councillor McGhee-Sumner also queried whether the £1.3m from the Housing Revenue Account, as set out in Recommendation 3, was sufficient given how much change there could be over the life of the project.  In order to address this issue he proposed that the wording in Recommendation 3 should be amended to state “up to £2m from the Revenue Housing Account …” and this was agreed by the Executive.

Councillor Weeks, the Ward Member for Finchampstead South, stated his support for the reinvestment in the site as he felt that the regeneration was essential as many of the properties were no longer fit for purpose and the redevelopment was long overdue.  He highlighted that there would be approximately 25 more affordable homes on the site that there were currently.

RESOLVED that the outcome of the feasibility work on the Gorse Ride estate be noted and the following be approved:

1)         the rehousing of tenants and acquisition of owner occupied homes and the subsequent demolition and redevelopment of the Gorse Ride estate (comprising all properties in Billing Avenue, Dart Close, Firs Close, Orbit Close and Whittle Close (excluding numbers 19 to 26), as well as, Gorse Ride South (numbers 8 – 42, even numbers only);

2)         the indicative development brief for the regeneration project;

3)         the proposed funding model, including the allocation of £28,015,683 Section 106 receipts (for the provision of affordable housing) towards the regeneration project and up to £2m from the Housing Revenue Account (HRA) for statutory compensation payments to tenants, in accordance with the Part 2 Report; 

4)         the selection of Wokingham Housing Limited (WHL) as the development partner for the regeneration project and Loddon Homes Limited as the end landlord for the new homes;

5)         that tenants living in the affected homes will be offered a new home on the regenerated estate on a lifetime assured tenancy with broadly similar terms to their current Council tenancy;

6)         that homeowners living in the affected homes will be offered a range of options to enable them to purchase alternative housing, including the option to buy a new home on the regenerated estate (or potentially off-site) with financial support where needed through an equity loan scheme (or similar); 

7)         that the Council transfers the site to Loddon Homes Limitedon terms to be agreed by the Director of Corporate Services in consultation with the Leader of the Council and Lead Members for Adult Services and Finance;

8)         that the Director of Corporate Services, in consultation with the Lead Members for Adult Services and Finance, can agree the terms and sign off the acquisition of homes required for the project;

9)         that the site is appropriated for planning purposes under Section 227 of the Town and Country Planning Act 1990 and Section 122 of the Local Government Act 1972;

10)       that the transfer of land and funding for the regeneration will be subject to WHL securing a planning consent for the scheme and the necessary Board approvals.