Part 1 ITEM NO. REPORT OF THE STRATEGIC DIRECTOR OF HOUSING AND PLANNING TO THE LEAD MEMBER FOR HOUSING SERVICES ON 29th June 2006 TITLE: 21 – 31a Newcombe Drive, Little Hulton. Option appraisal. RECOMMENDATIONS: That the Lead Member for housing:(i) (ii) (iii) (iv) (v) (vi) Supports the conclusion of the report, which identifies that the most satisfactory course of action for the council to take in respect of the future of 21 – 31a Newcombe Drive is for demolition and clearance of the site. Notes that all of the properties are currently void. Previous tenants have absconded or been transferred, so no home-loss or disturbance funding is applicable. Notes the significant development potential of the site, with an estimated value of ₤110,000 based on new build residential development, once cleared. Notes that the demolition will be funded from the Small Scale Stock Options budget 06/07 at ₤30,000. Notes that the site will be soil and seeded, with knee rail, pending a future decision on the marketing in conjunction with wider housing plans. Notes that Building Control will ensure that the site clearance, seeding will be completed to an appropriate standard so future maintenance can be done by Environmental Services and the future care costs borne from local area office budgets. EXECUTIVE SUMMARY: This report requests authority to progress the clearance of 21 – 31a Newcombe Drive The twelve dwellings have been void for varying periods over the last two years following fire damage to two of the blocks. They have suffered increasing levels of vandalism and fire damage since this time. The final tenant left the property in October 2005. The blocks are in a state of serious disrepair and given the very poor condition of the remaining structure early demolition is considered to be the only option. Estimated demolition costs have been calculated at ₤30,000. Demolition will clear a concentration of voids and vandalism from the estate. In addition the site will has an estimated value of ₤110,000 based for residential use which would improve the mix of tenure and type in an area (100% council owned or ex council property). Demolition is likely to considerably enhance the desirability of area. BACKGROUND DOCUMENTS: Small scale stock option appraisal procedure approved by Lead member 21st April 2005. Audit Commission Key Lines of Enquiry (KLOE 3) http://www.auditcommission.gov.uk/products/guidance/0CD68C37-776C-4C8B-ACAE133F5A1F727C/KLOE3.pdf ASSESSMENT OF RISK: Medium The properties have been subject to arson attacks and subsequent fire damage for over two years. It should be noted that since the last tenant vacated the block in October 2005, they have been secured and have not had any further fire damage. Occasional vandalism is still a problem. SOURCE OF FUNDING: The cost of demolition of the twelve properties is ₤30,000 and is to be funded through the Small Scale Stock Options budget 2006/07. COMMENTS OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES (or his representative): LEGAL IMPLICATIONS: N/A FINANCIAL IMPLICATIONS: There is adequate funding within the Small Scale Stock Option Budget 2006 - 2007 On behalf of Finance Nigel Dickens is satisfied with the action proposed and the source of funding. PROPERTY: The plot of land created by the demolition of nos. 21 – 31a Newcombe Drive holds significant development potential for residential use with a golf course to the north of the site. HUMAN RESOURCES: CONTACT OFFICER: James Allan, Strategy Officer, Asset Managerment Telephone/ email: 0161 793 2881 / james.allan@salford.gov.uk WARD(S) TO WHICH REPORT RELATE(S): Little Hulton KEY COUNCIL POLICIES: HRA Business Plan 2005 - 2035 DETAILS Background 1. Property Details. (please see appendix 1). 1.1. Address: - 21-31a Newcombe Drive, Little Hulton M38 9TT 1.2. The 12 properties are located in to three separate blocks and are situated as follows: 21 – 23a Located to the left of the site, adjacent to housing owned land. 25 – 27a Central, to the rear of the site, backing on to the adjoining golf course. 29 – 31a To the right of the site. 1.3. As a group, the properties stand apart from the surrounding estate: they are set back from the road (Newcombe Drive), forming a semi-circle and courtyard parking to the front. 1.4. All of the units are two bedroom, cottage flats and were constructed in 1964 as part of the Peel Estate. 1.5. The properties comprising the blocks have been void for varying periods since May 2004. The last tenant vacated number 23 on 10th October 2005. 1.6. Other homes in Newcombe Drive are all occupied either as SCC tenanted properties, or particularly on the opposite side of the street- through Right to Buy sales. 1.7. Since the properties began to be vacated, they have experienced further instances of vandalism problems that have jeopardised both their appearance and sustainability as lettable properties. (Please see appendix 2) 1.7.1. 21a suffered fire damage in May 2004. This subsequently led to the property below (21) to become sodden as a result of the actions taken by the fire brigade. 1.7.2. Number 27a was also similarly fire damaged later on in that year in December 2004. 1.7.3. The area has been subject to further arson attacks, although this has ceased to be a problem in recent months. 1.7.4. Telegraph poles have been used as a battering ram to gain access to property through the gable end of the blocks. 1.7.5. Gas and electricity meters have been stolen. 1.7.6. General vandalism has blighted the appearance of the area, with smashed windows, graffiti and on the 25-27a block, a significant section of the roof is now missing, exposing the upstairs property to the elements. In one incident the gas main to one of the blocks was attacked. 1.7.7. Repair costs in 2004 were estimated to exceed ₤70,000. It is now expected that the figure will be many times higher than this. 1.7.8. A decision was made to re-house the last final tenant in conjunction with the council’s legal team as a result of the Judge suspending his (substantial) arrears due to the ‘poor living environment’. Since the last tenant vacated the block, the regular attacks appear to have subsided. 2. Consultation 2.1. The recommendations in this report have been widely consulted internally to obtain the best possible view on the proposed course of action to provide the comprehensive response that is required to prevent the problems associated with this area affecting the rest of the estate. Specifically this proposal has been developed in consultation with The NPHL Group Manager, The Neighbourhood Manager Community Housing Services. Repair and demolition costs have been obtained from NPHL and land valuations relating to the development potential for the land have been gathered from Urban Vision Property Services. 2.2. Tenants, resident and elected members are very concerned about the condition and ongoing void status of these properties and are pressing for the situation to be addressed as a matter of urgency. The recommendations contained in this report have been widely consulted with tenants and residents through the TRA meetings and the Little Hulton Open Spaces Group. Details of the proposed action have been formally presented to elected members and to the Lead Member for Housing and have had their support. This report has been circulated in draft to local councillors for comment prior to being submitted to Lead Member and has their support. 3. Options. 3.1. The condition of the flats on Newcombe Drive has meant the repair and reletting of properties has not been considered as a value for money option. As the properties have been vacated over the last two years, they have not been re-allocated. 3.2. The last repair costs were calculated in 2004, and were estimated at around ₤70,000. Since then, costs are likely to have risen substantially, given the further damage to the dwellings. 3.3. Given the very poor condition of the remaining structure early demolition is considered to be the only option. Estimated demolition costs have been calculated at ₤30,000. 3.4. The site value for Newcombe Drive highlights promising development potential. Based on new build residential use (not apartments), the site is valued in the region of ₤110,000. Such a capital receipt is considerably greater than the cost of demolition. 4. Summary of Financial Information: 4.1. Refurbishment and conversion of the properties was estimated at ₤70,000 in 2004. The estate has since been subject to serious levels of vandalism. 4.2. Estimated demolition costs of: 21, 21a, 25, 25a, 27, 27a, 29, 29a, 31, 31a: ₤30,000 Additional 23 and 23a, are to be costed in line with the above. 4.3. The site value once cleared, based on new build residential use: ₤110,000. 5. Marketing and Promotion: 5.1. There are no marketing issues. 6. Press Release: 6.1. The area was subject to media attention in August 2005, when the final tenant in the twelve properties complained about the vandalism and arson attacks affecting the area. A decision was made to re-house the tenant in conjunction with the council’s legal team as a result of the Judge suspending his arrears due to the ‘poor living environment’. The article was published in the Salford Advertiser, and is still available online. It should be noted that the vandalism has now significantly diminished. http://www.salfordadvertiser.co.uk/news/ 7. Other Action Proposed Following Approval of This Report: 7.1. If approved by Lead Member, the clearance of 21 -31a Newcombe Drive will add significantly to the areas appearance and appeal. In its current state, the properties represent an isolated concentration of voids and vandalism to the area. 7.2. Clearance of the blocks will open the site up and provide a development opportunity which if exploited would significantly added value to the area, economically, socially and environmentally. 8. Recommendations: 8.1. That Lead Member approves the conclusion of this report which recommends the following action in respect to 21- 31a Newcombe Drive 8.1.1. The demolition of the three blocks comprising the twelve properties: 21, 21a, 23, 23a, 25, 25a, 27, 27a, 29, 29a, 31, 31a. 8.1.2. The soil and seeding of the vacated land whist a development brief is produced. 9. Conclusion: 9.1. The properties have gradually been vacated over the last couple of years, until the last flat was finally emptied in October 2005. Due to the ever worsening condition of the blocks and significant development potential of the vacant site, demolition is recommended to Lead Member as the best course of action. Appendix 1 Appendix 2 21 – 31a Newcombe Drive 25 – 27a Newcombe Drive (Front) 25 – 27a Newcombe Drive (Rear) 29 – 31a Newcombe Drive (Rear)