Meeting documents
Executive (I)
Friday, 25th October, 2013
| REPORT TO: | 75 |
| DECISION NUMBER: | PH/113/2013 |
| EARLIEST DATE FOR DECISION: | 22nd October 2013 |
TYLDESLEY ROAD AND RIGBY ROAD GRANT FUNDING AGREEMENT | |
| Matter for Consideration: Funding from the Homes and Communities Agency for the Tyldesley Road and Rigby Road Development Area. | |
| Information: Under Executive Decision EX3/2011, officers were authorised to submit a formal bid to the Homes and Communities Agency (HCA) to support the remaining site assembly and remediation and delivery costs associated with the (Tyldesley Road and Rigby Road) scheme. The HCA has now confirmed that it is its intention to make up to £2.7m funding available to contribute to the costs the remediation and other associated delivery costs in enabling the development. The funding will be available for the 2013/14 and 2014/15 financial years. The Tyldesley Road/Rigby Road development site includes the former Mecca and Illuminations Depot sites that were the subject of previous grant funding agreements (Executive approvals EX/4/2008, EX/21/2008, PH/14/2012). When it is completed, the new arrangement will either supercede the previous grant funding agreements in their entirety or in part. The new overage arrangement will substitute any overage provisions contained within the existing Mecca and Illumination grant funding agreements. Under the new agreement the HCA will be eligible for 50% of the overage due to the Council under the Development Agreement with Hollinwood Homes/Marcus Worthington (as outlined in Executive Decision EX/17/2013). The HCA has confirmed that eligible expenditure previously spent can be reimbursed. This can include the cost of acquiring the former gas works from Transco, the costs of demolishing the gas works buildings as well as remediation works and other associated project costs. The former gas works was purchased from Transco with the assistance of Growth Fund Allocation in the sum of £680,000 and HCA has agreed that acquisitions of equivalent value can be transferred to Growth Fund accounts to enable the Transco site to be fully eligible for funding from the current offer. Two purchases, which were previously funded through the Housing Capital Programme, have been agreed with HCA for retrospective transfer to the Growth Fund: Shadowlands, Tyldesley Road for £505,000 ( PH139/2009 refers) and 26/28 Crystal Road for £207,000 (EST2009/41 refers). As the total of these exceed the £680,000 Growth Fund Allocation used in the acquisition of Transco purchase only £175,000 will be reimbursed against 26/28 Crystal Road, the remaining £32,000 will remain funded from the Housing Capital Programme. It should be noted that these transactions have been completed and the action is a retrospective redistribution of funds. | |
| Does the information submitted include any exempt information? | NO |
| Legal Considerations: A formal funding agreement and overage agreement will need to be completed prior to being able to draw down on any of the funding. | |
| Personnel Considerations: None | |
| Financial Considerations: Subject to confirmation within the Grant Funding Agreement, the funding is available to help to deliver development in the Rigby Road area and will complement funding already granted on site assembly in respect of the former Mecca Building and the Illumination depot sites. | |
| Performance Management Considerations: None | |
| Risk Management Considerations: The funding will release monies already allocated for re-investment into the scheme. | |
| Relevant Officer: Steve Matthews, Head of Strategic Housing | |
| Relevant Cabinet Member: Councillor G. Campbell | |
| Consultation Undertaken: The Legal Services Division is being consulted on the new funding agreement and overage agreement by HCA’s legal section. Asset Management and Financial Services have been consulted. | |
| Background Papers: None | |
| Is this a key decision? | NO |
| Is the decision required in less than 5 days? | NO |
| Recommendations: To enter into a funding agreement with Homes Community Agency to provide £2.7m to support the Tyldesley Road and Rigby Road Development Area. To approve the retrospective redistribution of funds for previous property acquisitions as set out in this report. | |
| Reasons for Recommendations: The funding will assist in bringing forward redevelopment within Blackpool. | |
| Is the recommendation contrary to a plan or strategy adopted or approved by the Council? | NO |
| Is the recommendation in accordance with the Council’s approved Budget? | YES |
| Other alternative options to be considered: The Rigby Road development could go ahead without the HCA funding in which case the whole comprehensive scheme could not be completed. A lesser sum could be accepted from HCA ,ie minus £680,000, but this also would not enable the comprehensive scheme to be delivered. | |
| Policy, Overview, and Scrutiny Committee Chairman (where appropriate) Date Informed: N/A Date Approved: N/A | |
| DECLARATION(S) OF INTEREST (if applicable) None | |
| Decision: The Cabinet Member agreed the recommendations above, namely: (1) To enter into a funding agreement with Homes Community Agency to provide £2.7m to support the Tyldesley Road and Rigby Road Development Area. (2) To approve the retrospective redistribution of funds for previous property aquisitions as set out in this report. | |
| Date: | 25th October 2013 |
| Reason for Decision: The funding will assist in bringing forward redevelopment within Blackpool. | |
Date of Publication: | 25th October 2013 |
[ ]
