To consider the report of the Chief Executive & Growth Director.
Decision:
Agreed:
RECOMMENDED that Council:-
(1) approve the 2022-23 Exeter City Living Business Plan, and commit to funding and expenditures as outlined in the plan and include the provision to recruit in accordance with the Business Plan based on a committed development pipeline;
(2) agree to the principle to dispose of the sites identified in Appendix A of the Business Plan to achieve the objectives of the City Council, namely, building homes, and to authorise the City Surveyor, in consultation with the Leader of the City Council, to enter into negotiations to sell the sites identified in Appendix A of the Business Plan;
(3) agree to strive to achieve a timely and efficient process of site disposal in support of the Business Plan in accordance with the ‘Sale Methodology’ outlined in Appendix B of the Business Plan, and to standardise option agreements for the sites outlined in Appendix C of the Business Plan. The timeline for the development programme demonstrates the importance of timetables being met in order to comply with funding agreements and the implications of construction inflation;
(4) note for clarity, that the Developments outlined in the Appendices are over and above Clifton Hill and Vaughan Road (The Gardens, Whipton) which Exeter City Living are already committed to deliver in line with their 2020-2021 Business Plan;
(5) note that, in relation to the Housing Revenue Account new build and asset remodelling projects, Exeter City Living will be the developer of choice and given opportunity of first refusal;
(6) note that, Exeter City Living will pioneer the transition to a Net Zero future delivering Passivhaus standards or a Net Zero standards as the default position (unless otherwise instructed by the Shareholders on specific sites), demonstrating climate resilience and delivering healthy buildings, with low or zero car parking provision, depending on location and access to facilities; and
(7) note for clarity, that the Business Plan does not include an assumption that Exeter City Living will act as a property management company for the purposes of built to rent accommodation, and any such requirement may require a change in the scope of the management agreement and a refresh of the Business Plan.
Reason for Decision: As set out in the report.
Minutes:
The Director Corporate Services declared an interest as a Director of Exeter City Living and the Exeter City Group and left the meeting during consideration of the following item.
The Executive received the report on the Exeter City Living Business Plan 2022-23, which sought the City Council’s Shareholder approval to move into an ambitious delivery phase, with over 426 new homes in the development of nine Exeter City Living sites and a further 150 - 250 new homes on four Housing Revenue Account Sites. The vision and plans for the coming years would require a substantial funding commitment to enable the opportunity for Exeter City Council to lead a Net Zero urban regeneration in the central area of the city and provide much needed housing, while protecting the green ridge line of the city from development.
The Chief Executive & Growth Director explained that the report provided a timeline for the delivery of new homes and explained the background to developing the Business Plan for Exeter City Living, and the failure in the market to deliver homes in the central areas of the city. The company had been established to address a range of factors, including raising the quality of development especially in the context of environmental performance, design quality and place shaping objectives. Many developers had focussed on Purpose Built Student Accommodation in central areas.
The Exeter City Living would set a standard for a Net Zero or Passivhous approach, accessibility and sustainability. The Business Plan was necessary as a financial model to ensure that ECL would be profitable and successful going forward. There were financial challenges ahead and the report provided a timescale for delivery of the developments.
The Chief Executive & Growth Director referred to assistance through the Brownfield Land Release Fund and the bid to the One Public Estate Funding. He set out the proposed scenario for developing five sites already identified in terms of mix of properties. All developments, and the mix within each, would be subject to planning permission.
During the discussion the following points were raised:-
· there would be a difficulty competing with other companies but there would be focus on delivering the Councils key objectives;
· all developments would be subject to planning permission; and
· there was a focus on timely developments around the challenges related to the sensitivity of the identified sites.
The Leader endorsed the business case and recognised the challenges and work to deliver the vision for sustainable and Net Zero homes for the city.
RECOMMENDED that Council:-
(1) approve the 2022-23 Exeter City Living Business Plan, and commit to funding and expenditures as outlined in the plan and include the provision to recruit in accordance with the Business Plan based on a committed development pipeline;
(2) agree to the principle to dispose of the sites identified in Appendix A of the Business Plan to achieve the objectives of the City Council, namely, building homes, and to authorise the City Surveyor, in consultation with the Leader of the City Council, to enter into negotiations to sell the sites identified in Appendix A of the Business Plan;
(3) agree to strive to achieve a timely and efficient process of site disposal in support of the Business Plan in accordance with the ‘Sale Methodology’ outlined in Appendix B of the Business Plan, and to standardise option agreements for the sites outlined in Appendix C of the Business Plan. The timeline for the development programme demonstrates the importance of timetables being met in order to comply with funding agreements and the implications of construction inflation;
(4) note for clarity, that the Developments outlined in the Appendices are over and above Clifton Hill and Vaughan Road (The Gardens, Whipton) which Exeter City Living are already committed to deliver in line with their 2020-2021 Business Plan;
(5) note that, in relation to the Housing Revenue Account new build and asset remodelling projects, Exeter City Living will be the developer of choice and given opportunity of first refusal;
(6) note that, Exeter City Living will pioneer the transition to a Net Zero future delivering Passivhaus standards or a Net Zero standards as the default position (unless otherwise instructed by the Shareholders on specific sites), demonstrating climate resilience and delivering healthy buildings, with low or zero car parking provision, depending on location and access to facilities; and
(7) note for clarity, that the Business Plan does not include an assumption that Exeter City Living will act as a property management company for the purposes of built to rent accommodation, and any such requirement may require a change in the scope of the management agreement and a refresh of the Business Plan.