Agenda Item No 7 Bristol City
Total Page：16
File Type：pdf, Size：1020Kb
AGENDA ITEM NO 7 BRISTOL CITY COUNCIL CABINET 24 March 2011 Report of: Alison Comley, Strategic Director Neighbourhoods Title: (Parkinson and Woolaway) PRC Proposal – Business Case Ward: Kingsweston, Lockleaze, Henbury Officer Presenting Report: Alison Napper, Priority Stock Programme Manager Contact Telephone Number: 3525168 RECOMMENDATION It is recommended that 1. Cabinet approve the detailed proposal to deal with the Parkinson and Woolaway properties in Sea Mills, Lawrence Weston, Lockleaze and Henbury as set out in this report 2. Cabinet approves the procurement of a contractor or contractors to deliver the PRC repair programmes. 3. Cabinet approve the proposal to prudentially borrow up to £12m, and dispose of all or some of the identified sites, total potential estimated value of £7.6m, on the open market for private housing or for affordable or social housing delivered through a provider – to fund the anticipated £15m total scheme costs in the most economically advantageous way for the Housing Revenue Account (HRA). The aspirations are to ensure sufficient capital receipts are raised to fund the scheme as required, as well as to meet wider strategic objectives and make the best use of our assets. Summary In February 2010, Cabinet approved the broad proposal to deal with the Parkinson and Woolaway properties in Sea Mills, Lawrence Weston, Lockleaze and Henbury. In summary, the proposal was to clear certain PRCs and sell the land, along with some additional sites, for redevelopment. The proceeds from the land sold for redevelopment will be used to fund the repair of all other PRCs. Some additional Housing Revenue Account (HRA) funding will be required to make up the shortfall. The project is on track to deliver the objectives agreed. The structural survey results are positive, indicating that all PRCs scheduled for repair can indeed be repaired using the proposed system. This results in savings on previous estimates as no properties are expected to require a full rebuild. The proposed repair packages have been trialled on pairs of both Woolaway and Parkinson type PRC homes. The site valuations have been reconsidered and confirmed. 1 The significant issues in the report are: The total scheme costs have reduced significantly from approximately £19m to £15m There are 414 PRCs to repair and 160 properties to be demolished, and the land cleared for redevelopment. Structural surveys were completed on all Woolaways and Parkinsons scheduled for repair – the results indicate that all can be repaired using our proposed package of works contributing to the proposed savings. (The February 2010 report suggested that up to 10% of these properties would need to be completely rebuilt.) The repairs work is to be tendered as two contracts for 164 Woolaway homes and 246 Parkinson homes. The intention is to start work in Autumn 2011, run the contracts concurrently and completing all repairs before the end of 2013. The proposal recommends 160 PRCs be demolished and the land appraised and sold for private housing, if this is the most economically advantageous route for the HRA. 134 of these properties are tenanted, and the affected tenants have all been contacted and consulted on the proposals. To date 12 tenants have moved. Since the February 2010 report, Bristol failed to secure the estimated £10.5m Homes and Communities Agency (HCA) grant funding to build 76 new council homes. However, Bristol has been awarded over £775,690,grant from the HCA, and is match funding the grant with £907,268 from the HRA to build 12 new council homes. The homes are due to be complete in July 2011 and will be a source of rehousing for some of the displaced PRC tenants. There remain nine privately owned properties to acquire to assist the redevelopment. Good progress has been made with negotiating with seven of these nine owners. Three are due to move in April 2011. • The site valuation estimates have been tested, and we are cautiously optimistic that the total site value of £7.6m is realistic and achievable. • Indicative figures on the impact on Bristol’s HRA following the government’s HRA Subsidy Review indicate that we may have various options to investigate as to how fund this PRC programme. Further work will be carried out in the next few months to develop the option that provides the best use of our assets, be that through prudentially borrowing or using our reserves, and the extent to which we fund this by selling land. • The total scheme costs are estimated to be £15m – which includes all repair costs, costs associated with rehousing tenants and acquiring owners, and demolition and site maintenance costs. • Comparison with previous cross-subsidy PRC Redevelopment Project 2 New scheme Previous Scheme Displaced PRC tenants 134 £1m 565 £3.5m PRCs demolished, void 121 £2m 565 (costs within cross subsidy management costs, etc. deal) Owners to acquire 9 £1m 9 £1m Repaired homes 414 £11.25m 0 New build council homes 0 £0 300 The cross-subsidy deal Additional new private 370 600 was £7.7m adrift when the homes scheme was withdrawn TOTAL COUNCIL 414 repaired 300 new homes HOMES homes TOTAL INCOME £7.6m capital £0 receipt TOTAL COSTS £15m £12m (including new build) NET COSTS £7.4m £12m Policy 1. Priority Stock Strategy Asset Management Strategy Private Housing Renewal Policy Corporate Land Policy Consultation 2.Internal Executive Member, Neighbourhoods Ward Councillors Steven Barrett, Service Director - Landlord Services Mary Ryan, Service Director - Landlord Services Nicky Debbage, Landlord Business Unit Manager Claire Burston, HRA Finance Business Partner Tim Bruce, Renewal and Investment Manager Peter Quantick, Property Services Manager Angela Kendrick, Senior Solicitor Sheelagh Dawson, Principal Solicitor Matt Sands, Environment Adviser Christopher Brake, Project Officer 3.External Tenants of the affected properties Tenants of the affected garages Residents adjoining the sites 3 Context 4. 4.1 Table 1 PRCs to be cleared for Option PRCs to be repaired TOTAL redevelopment To be Pilot units Sub- Tenanted Void Private Sub- repaired completed Total Total Sea Mills 246 2 248 0 0 0 0 248 Lawrence 98 2 100 58 4 2 64 164 Weston Lockleaze 45 0 45 60 10 4 74 119 Henbury 21 0 21 16 3 3 22 43 TOTAL 410 4 414 134 17 9 160 574 The table above gives a breakdown of the PRCs to be repaired or redeveloped by area. Since the scheme was approved by Cabinet in February 2010, the number of homes included in the project has reduced from 579 to 574 as five homes previously proposed for repair have been purchased under the right to buy. The number of homes to be redeveloped has increased from 159 to 160 following, firstly, an arson attack on a void property in Lockleaze. The damage was so severe that it was deemed appropriate to demolish the property and it’s adjoining property, due to both the amount of damage caused and it’s location next to a vacant plot of land. In addition, one property previously proposed for redevelopment is now being repaired, as it adjoins a private owner in Lockleaze not previously identified as crucial to future development. 4.2 Redevelopment The proposal recommended 160 PRCs be demolished and the land sold for private housing. We have 160 PRC homes to be cleared for redevelopment, of which 134 are tenanted. The affected tenants were consulted on a draft of the Rehousing Strategy, spelling out how need and priority would be assessed and what the rehousing opportunities were. All tenants have been encouraged to complete the standard rehousing paperwork, and offered a home visit. To date, 12 tenants have moved through the Homechoice Bristol system. 4.3 In addition to properties available though Homechoice Bristol, there will be a large pool of homes ring-fenced for PRC tenants. Direct offers will be made to PRC tenants for the 12 new build homes in Lawrence Weston, 32 long-term PRC voids proposed for repair and various new build properties built on former prefab sites across Bristol. We estimate that all tenants should be rehoused by April 2013. Please see Appendix A for details. Tenants receive statutory Homeloss Compensation (currently £4,700), as well as a disturbance allowance to cover all reasonable costs incurred as a result of the move. Dedicated housing officers are available to offer advice and support throughout the rehousing process. 4.4 As part of the original PRC Redevelopment Project, the acquisition of 20 privately owned properties was considered essential to the redevelopment. To date, 11 of the 20 properties have been acquired. The remaining nine properties are all located in the redevelopment areas. The private owners willing to sell their homes to the council can opt for an outright sale – with the council offering market value, plus 10% as Homeloss Compensation as well as help and assistance in moving, or can swap their existing home for an alternative council property again attracting the compensation and moving assistance. 4.5 A preliminary assessment of the likely receipts generated from the sale of PRC sites identified for clearance and sale, as well as the additional parcels of land in and around the estates (garage sites, etc.) originally indicated a value in the region of £7.6m. This estimate has been tested, and we are cautiously optimistic that the figure is realistic and achievable. Repairs 4.6 Those homes not identified for redevelopment are proposed to be repaired. Structural surveys were undertaken on all Woolaways & Parkinsons proposed to be repaired and the results showed that all are repairable using our proposed repair method. The intention is to undertake localised repairs and external cladding work and that this will be a viable solution to extend the life of the properties by 30 years.