Agenda item

Report by Head of Resources (attached).

The Committee considered a report by the Head of Resources (circulated previously) regarding a proposed Memorandum of Understanding with North Devon Homes.

The Head of Resources highlighted the following:

·         A report was presented to Executive on 5 June 2017, advising of the assets and Estates preferred option to dispose. It was agreed that the Head of Resources be given delegated power to dispose of the listed assets through whichever method deemed appropriate bearing in mind the need to ‘obtain best value’.

·         In a report to Leadership on 23 July 2018 the Estate officers advised that the surplus assets had been re-evaluated led by recent changes in the Council’s requirements to deliver short and long term Temporary Accommodation (TA) for homeless households, in accordance with its responsibilities under the Housing Act 1996 and Children Act 2004, where the Council must establish a suitable stock of its own accommodations. The initial desk top exercise included reviewing surplus assets against the costs of purchasing land and to support our case to land bank and “hold off” disposal in order to maximise the potential from our own assets. The second task reviewing potential joint partnerships with North Devon Homes (NDH) for the Council to develop/secure the Council’s long term objectives for TA. Reviewing our surplus assets it was identified that NDH had a number of sites which adjoined our land, creating a common interest.

·         The obligations on NDH would be to take on the initial steps to facilitate the redevelopment, including the initial risk and costs; such as carrying out all relevant investigations into the likelihood of obtaining planning. To date on all potential sites, NDH have already submitted pre-planning applications and feedback had been positive.

·         The projects would be completely self-financing with NDH taking on risk and any upfront costs.  If any unforeseen costs were identified then this will be picked up in the viability study.

·         Approvals on each agreed scheme would need to be agreed by both the Council and NDH.

·         The draft Memorandum of Understanding contained in Appendix A of the report.

·         Agreed schemes as detailed in Schedule 1 of the Memorandum of Understanding.

Councillor Worden confirmed that the Lead Member for Housing was supportive of the report and Memorandum of Understanding.

In response to questions, the Head of Resources advised the following:

·         Clarification would be sought regarding the leaseholder’s area of land on the site of Pill Garden, Braunton.

·         The term “surplus” asset was an accounting terminology which the Council was required to use in its accounts.

·         Allotments at Merryside Villas, Witheridge had not been used for a long time.

·         For all schemes, the Council would be looking at the long term benefit for the Council.

In response to questions, the Chief Executive advised that:

·         Any schemes would go through the development phase and presented to the Committee for agreement. 

·         The Council was working with NDH as owned adjoining land to the schemes identified and also had the same ethos as the Council in relation to climate change.  Consideration would also be given to using some land for wild flower meadows etc.