Part 1 ______________________________________________________________ REPORT OF THE MANAGING DIRECTOR OF URBAN VISION PARTNERSHIP LIMITED ______________________________________________________________ TO THE LEAD MEMBER FOR HOUSING ON 13TH July 2006 ______________________________________________________________ TITLE: LAND AT POETS CORNER/ IRWELL RIVERSIDE SITE, GERALD ROAD ______________________________________________________________ RECOMMENDATIONS: That Lead Member: 1. Notes the background and current position in relation to this matter. 2. Considers the proposal to acquire the site by Alderbrook Management Ltd for the provision of a student flat development of Circa 170 units which would be in addition to those for which planning consent has been granted on the adjoining site. 3. That subject to the decision in respect of item 2/ that Lead Member approves the Planning/Development Brief for the site as a basis for the future development of the site. ______________________________________________________________ EXECUTIVE SUMMARY: The Council and Alderbrook have been in discussions about the development of this site dating back to the land swap between the parties which resulted in Alderbrook owning the adjoining site and the Council owning the Pioneer Western site. It has not been possible to conclude a deal based on difficulties needing to be resolved with the site, and the changing Housing and Planning requirements associated with the development of the site since negotiations commenced. The report brings Lead Member up to date with discussions and seeks a decision as to whether a student development proposal from Alderbrook should be accepted or whether Lead Member wishes to take forward the development of the site in accordance with a Planning/Development Brief which is attached for approval. ______________________________________________________________ BACKGROUND DOCUMENTS: Development Brief and correspondence from Alderbrook Management Ltd. ______________________________________________________________ ASSESSMENT OF RISK: Medium ______________________________________________________________ SOURCE OF FUNDING: It is anticipated that the receipt from the sale of the site will cover the cost of the roadway and associated works required by the Planning Brief. LEGAL IMPLICATIONS: Whilst there is no legal agreement to sell the land to Alderbrook, a decision to proceed to sell the site to another party is likely to lead to an adverse reaction from Alderbrook. FINANCIAL IMPLICATIONS: Determination of the way forward will dictate the likely capital receipt arising from the site COMMUNICATION IMPLICATIONS: Local people will be interested in decisions associated with this site and have requested the use of the site as a kick about/football area VALUE FOR MONEY IMPLICATIONS: The report considers the options associated with the future of the site and seeks the views of Lead Member on this issue. CLIENT IMPLICATIONS: The views of the Housing and Panning Directorate and the NDC team have been reflected in the report. PROPERTY: The report deals with a Property Issues and seeks a view on the future of a site and the associated development issues. ______________________________________________________________ HUMAN RESOURCES: N/A ______________________________________________________________ CONTACT OFFICER: PETER OPENSHAW 0161 779 6126 ______________________________________________________________ WARD(S) TO WHICH REPORT RELATE(S): Kersal ______________________________________________________________ KEY COUNCIL POLICIES: Regeneration and associated Housing and Planning policies ______________________________________________________________ TITLE: LAND AT POETS CORNER/ IRWELL RIVERSIDE SITE, GERALD ROAD 1.0 Introduction 1.1 This site was excluded from a land exchange in 2004 between the Council and Alderbrook Developments Limited, whereby an adjoining Housing clearance site fronting onto Seaford Road was exchanged for land in Alderbrook’s ownership at Douglas Green (the old Pioneer Western site). A student apartment/studio scheme is presently underway on the Seaford Road site. 1.2 Alderbrook sought to acquire the Irwell Riverside site, and Lead Member approved an exclusive negotiation with Alderbrook, being the owner of the adjoining Seaford Road site and thus a Special Purchaser. It is however now questionable as to whether there is justification for a one to one sale to Alderbrook as the access to the site will be taken from Gerald Rd and is therefore not conditional on reaching agreement with the adjoining landowner. To further complicate matters it has become clear from discussions with Alderbrook that their role in acquiring the site is likely to be a middleman role which will ultimately see the sale of the site and the subsequent development of the site, by a third party. 1.3 Negotiations have been ongoing for some time and have proved difficult to bring to a conclusion due to difficulties associated with the upgrading of Gerald Rd and changing Housing and Planning policy guidance since 2004. 2.0 Information 2.1 After protracted discussions involving proposals to develop the land, shown edged red on plan 1 attached, for a residential development, Alderbrook have produced a development proposal which would, by merging the Irwell Riverside site with the Seaford Road site, enable the expansion of the student apartment scheme on Seaford Road by approximately 170 student units. If this proposal receives planning approval, the Council could secure a substantial capital receipt from the sale of the Irwell Riverside site to Alderbrook. Unquestionably this is the highest possible capital receipt that the site could deliver in the current market. 2.2 The key issue is whether such a use is considered acceptable bearing in mind that the Council’s Planning and Housing Policies have developed considerably since the Seaford Road site received planning consent for student accommodation. 2.3 The collective view of Housing and Planning officers and the New Deal team is that further student accommodation in this location should not be supported. Any additional provision would be contrary to Policy H7 of the UDP as it would lead to an over concentration of such accommodation, and be detrimental to the character of the area. In addition, the proposal would not be compatible with wider regeneration objectives for the area. 2.4 In order to specify the type and form of development that is considered acceptable in terms of current Planning and Housing Policy guidance, and to ensure that the key development issues are flagged up so they can be addressed through the development process a Planning/Development Brief has been prepared, and is attached at Appendix 1. Key components include :The desire to see a residential scheme encouraging owner occupation with a defined requirement for affordable housing. The desire to see a mix of residential units. The desire to see Gerald Rd used as the sole access route, which would require Gerald Rd being brought up to adoptable standards. 2.5 Mr Williams of Alderbrook has advised that he, and he believes no other developer, cannot viably develop the Irwell Riverside site in accordance with the Development Brief. 2.6 Lead Member has previously approved the appointment of OPUS (Miller Homes and Inspired Developments) as the Councils preferred development partner for the New Deal area, and it is suggested that if Lead Member endorses the Planning/ Development Brief as the preferred way forward that the opportunity to put forward proposals for the site should be offered in the first instance to OPUS. 2.7 A recent request has been received by the New Deal team, from residents on the Albion Estate next to the site, seeking authority to have the site allocated as a kick about /football area. It is suggested that before this option is considered further, the opportunity for the redevelopment of the site should be explored as detailed above. 3.0 Financial Details 3.1 Whilst the student flat proposal would generate the highest capital receipt for the site this is meaningless if such a scheme was not supported by the Council. 3.2 Whether the required proposals as set out in the Planning/Development agreement are attractive to the private sector will need to be tested. This will determine what if any capital receipt would be forthcoming. 4.0 Recommendations That Lead Member:1. Notes the background and current position in relation to this matter. 2. Considers the proposal to acquire the site by Alderbrook Management Ltd for the provision of a student flat development of Circa 170 units which would be in addition to those for which planning consent has been granted on the adjoining site. 3. That subject to the decision in respect of item 2/ that Lead Member approves the Planning/Development Brief for the site as a basis for the future development of the site. 5.0 Conclusion Approval of the recommended course of action will hopefully enable development proposals for the site to be considered in accordance with the guidance set out in the Planning/Development Brief. Progress will be regularly reported to Lead Member.