Agenda item

Report by Head of Place, Property and Regeneration (attached).

The Committee considered a report by the Head of Place, Property and Regeneration (circulated previously) regarding an update on the Seven Brethren project, land release fund.

The Head of Place, Property and Regeneration highlighted the following:

·       In November 2017 North Devon Council (NDC) were awarded £2.2 million of Land Release Fund to help bring forward residential development at Seven Brethren. This fund was a government initiative to assist in unlocking public sector sites and accelerating the delivery of housing.

·       Hybrid planning permission for the provision of a replacement long stay car park and temporary toleration site (detailed) and for 180 dwellings together with all associated infrastructure (outline) was granted on the 15 November 2022.

·       On the 7 December 2022, NDC entered into a Development Agreement with Tarka Living Ltd to deliver both the enabling works and the delivery of between 175 and 180 homes.

·       The site for the residential development comprises the old leisure centre site, events area, existing toleration site and the Tarka overflow car park.

·       The new long stay car park would be sited adjacent the Artificial Grass pitches to the rear of the Tarka Leisure Centre.

·       The enabling works constitute the demolition of the old leisure centre, provision of the new long stay car park and temporary toleration site and the erection of flood defences along the river Taw. The flood defences take the form of a wall tying in to the existing long bridge and then a bund to the new leisure centre. The majority of these defences were those required as a result of the Anchorwood development but were also needed to bring this site forward for housing. There was a contribution from the Anchorwood development that would be used towards the delivery of these defences.

·       The Development Agreement that was entered into in December was conditional and there were 3 conditions attached, as detailed in paragraph 4.5 of the report.

·       On the 28 February 2023 a reserved matters application was submitted to the Local Planning Authority in the joint names of Tarka Living Ltd and North Devon Council.

·       A plan has been received identifying the location of the 30% affordable housing and the tenure split.

·       Evidence of agreed Heads of Terms with Live West (the identified social provider) had been provided.

·       Following compliance with these conditions, the Agreement went unconditional on the 28 February 2023. For the terms of the funding agreement with Central Government this met the definition of ‘land released’ and within their agreed programme.

·       The first lease was then granted 20 working days after the unconditional agreement. The first lease constituted the old leisure centre and short stay car park. The first payment to the Council was also received.

·       Prior to the commencement of the enabling works the Development Agreement required a Compliance Inspector to be appointed for the enabling works and evidence of funding to be provided. This was provided and agreed in advance of the enabling works start date of the 28 March 2023.

·       The enabling works have commenced in the form of site clearance works on the proposed car park site. These have been done under the watching brief of TLL’s ecologist.

·       A Joint Delivery Board had been established for the project (comprising 3 officers from the Council and 3 from the Development Partner), which currently meets bi-weekly to map the progress of the project.

·       It had been hoped that the new car park site would be ready for this September but this will no longer be the case. The design of the car park was reaching RIBA Stage 4 and the contractor was about to be appointed but there was insufficient time for this site to be ready for this year’s fair. As such, the Fair will remain on the existing site for 2023 and both Barnstaple Town Council and the Showmen’s Guild had been notified; a meeting has been set up on site on 10 July 2023 to discuss this with them further.

·       The JCT Design and Build contract for the car park had yet to be entered into as details are being finalised, together with the Contractor’s proposals.

·       A contract has been entered into for the demolition works to the old leisure centre.

·       The works to the flood defences were in design and we await a programme for those.

·       Notwithstanding the Fair remaining on site for this year, we need to enter into a new license with Barnstaple Town Council for the future and in advance of Lease 2 being entered into (the remainder of the site).

·       On 29 March 2021, at its meeting, Barnstaple Town Council declared that subject to detailed specification that the new proposed site was a suitable alternative for the Barnstaple Ancient Fair in line with the plan at Appendix B. This allowed for the procurement for a development partner to commence.

·       Negotiations have been taking place with Barnstaple Town Council for the new licence. The agreed term was for a period of 25 years with a review clause. The period of occupation within the licence is from 00:01 hours on the Sunday preceding the Barnstaple Fair to 23:59 on the Sunday following the Barnstaple Fair.

·       The licence fee was based against the loss of income from the car parks occupied by the Fair.

·       At Barnstaple Town Council’s (BTC) request, the termination clause remained the same as the existing licence as detailed in paragraph 4.23 of the report.

·       Officers were seeking delegated powers to negotiate and finalise the terms and enter into the licence with Barnstaple Town Council on the basis set out in this report.

·       Within the Development Agreement there was an obligation on the Development Partner to take out an environmental insurance policy. A draft policy has been received and this is currently being considered. A separate report later in this agenda considers further insurance cover the Council may want to take out to enhance that already being provided by the developer.

·       Following the submission of the reserved matters application, a number of queries have arisen as part of the consultation process, as was common for a major planning application. In May 2023, TLL and your officer’s met with NDC Planners and amended drawings were being designed to address the concerns raised. This reserved matters application will be determined by Planning Committee and it was anticipated that the application would be received shortly.

·       The current programme shows a residential start date in the Development Agreement of November 2023. It was anticipated that this will be delayed given the status of the enabling works but we await a revised programme.

·       The residential development will be delivered in 4 phases and the freehold transfer of each phase will occur when the last dwelling in that phase and all associated works have reached golden brick stage.

In response to questions, the Head of Place, Property and Regeneration advised the following:

·       The provision of affordable housing would be pepper potted throughout the scheme and would be identified in the phasing plan which would be shared with Members.

·       Officers had been working with the Environment Agency throughout the project and they were happy with the proposed defence scheme and had requested that the site levels also needed to be raised.

In response to questions, the Director of Resources and Deputy Chief Executive advised the following:

·       The Joint Delivery Board meet bi-weekly with the developer and no concerns had been raised regarding the deliverability of the scheme. The developer’s financial appraisal included contingency plans.

RESOLVED that:

(a)  The update for this project be noted;

(b)  That the Head of Place, Property and Regeneration be delegated powers, in conjunction with the Leader and Lead Member for Strategic Planning and Economic Development to:

a.    enter into a licence with Barnstaple Town Council based on the principles set out in this report;

b.    in consultation with the Senior Solicitor and Monitoring Officer, enter into a contract for the delivery of a new long stay car park to allow for the development of the existing site; and

c.     in consultation with the Senior Solicitor and Monitoring Officer, enter into a lease for the second lease land at the Seven Brethren Bank site as shown on the plan in Appendix A to this report.