Agenda item

At this point in the meeting the Press and Public were invited to rejoin the meeting.

 

The Executive Member for Regeneration submitted a report for Executive’s consideration.

 

The report sought approval for the disposal of Hemlington Grange West, which was allocated in the Housing Local Plan (2014) and Draft Housing Local Plan (2024), in accordance with the Council’s Asset Disposal Process, and to inform Executive of the next steps to take the site to market.

 

Hemlington Grange West was a Council owned site of circa 20.05 acres (8.11 ha) and was currently identified in the Housing Local Plan (2014) as part of the Hemlington Grange mixed use allocation. A site plan was attached as Appendix one of the report.

 

The site was originally envisaged as being a potential location for business use, but the outcome of an Employment Land Review had been determined that there was no demand in this location.

 

The site had subsequently been allocated in the Draft Local Plan 2024 for the development of approximately 170 dwellings and an appropriately scaled Local Centre.

 

The site would provide a mix of dwelling types and sizes, including bungalows, that complemented and enhanced the choice and quality of housing in the local area.

 

Vehicular access for the site would be taken from Hemlington Grange Way, whilst incorporating access to the adjacent Holme Farm allocation for vehicles, pedestrians, and cyclists. Footpaths would also be provided to link into the wider network.

 

Hemlington Grange West had been formally established as a Level one project, identifying the strategic importance to the Council. The Council’s Programme and Project Management Framework (PPMF), underpins the achievement of its strategic objectives.

 

Demand for new homes continued to strengthen and the town required a significant supply of new housing developments over the next decade to allow the town to keep pace with local demand and national demographic trends. Middlesbrough’s Draft Local Plan, which had been informed by a Local Housing Needs Assessment (LHNA), identified a requirement for the delivery of 400 net additional dwellings per annum between 2022 and 2041.

 

The Executive Member for Finance and Governance expressed concern regarding the proposed local centre as the Member for an adjoining ward.

 

The Mayor proposed an amendment to the report to reflect that Executive had considered all relevant information in reaching its decision.

 

ORDERED That Executive:

 

1.    Approve the de-risking, marketing and disposal of the Hemlington Grange West housing site;

2.    Provides Delegated Authority for the Director of Regeneration and the Director of Finance, following consultation with the respective Executive Members, to approve the Public Open Space (POS) and Land Appropriation process.

3.    Confirms it considered all the relevant information in reaching its decision.

 

OPTIONS

 

Don’t sell the land

 

This would have resulted in an inability to realise a planned capital receipt and in ability to grow the council tax income base. Failure to dispose of the land would be contrary to the current and draft Local Plans.

 

Sell the land prior to de-risking the site.

 

Previous market and disposal advice for other sites indicated this approach did not demonstrate Best Value for the Council. The approach would realise a reduced capital receipt and there would have been significant uncertainties around the timescales for delivery as the land did not have an outline planning approval.

 

Sell the land without outline planning permission.

 

It is known that developers will pay for the benefit of a de-risked site. Disposal without outline planning consent would increase the risk for developers, potentially leading to fewer than normal offers and at a reduced financial return.

 

Sell the land without undertaking Due Diligence or adopting Design Guidance.

 

The Council’s proven financial approach to housing site disposals was based on maximising capital receipts by ‘de-risking’ sites. This involved undertaking site investigation works, producing design guidance and gaining outline planning approval to competitively marketing sites.

 

Enter a Joint Venture

 

As the Council was the sole owner of the site and had the capital budget to fund the due diligence and outline planning application, professional analysis concluded that collaboration with external partners on the disposal did not represent Best Value.

 

REASONS

 

The development of Hemlington Grange West would bring a surplus, vacant and underutilised Council held asset into far more beneficial use in the future, creating a new community and a high-quality place.

 

With interest in Middlesbrough’s housing sites continuing to be strong, the disposal of the subject land was recommended in order to meet the Council’s requirements to generate capital receipts and increase annually recurring streams from Council Tax.

 

Middlesbrough’s housing offer needed to keep pace with the demands of the market. The release and development of this site would allow that to be achieved; stemming outward migration and making Middlesbrough a desirable place to live, with a quantity of residential properties that would address the requirements of a changing, growing, and evolving population.