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Council New Build Programme Norrieston Glebe, Thornhill

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Council New Build Programme Norrieston Glebe, Thornhill THIS REPORT RELATES STIRLING COUNCIL TO ITEM 6 ON THE AGENDA ENVIRONMENT AND HOUSING HOUSING & ENVIRONMENT COMMITTEE 2 APRIL 2015 NOT EXEMPT COUNCIL NEW BUILD PROGRAMME NORRIESTON GLEBE, THORNHILL 1 SUMMARY 1.1 The site at Norrieston Glebe, Thornhill was initially zoned for 100% affordable housing in the 1999 Stirling Local Plan. The farmer and Church of Scotland who jointly owned the site were unwilling to accept an affordable valuation for the site. Rural Stirling Housing Association initially investigated the development of the site. They could not reach agreement with the landowners and decided not proceed. 1.2 During the consultation period for the Stirling Local Development Plan, the zoning changed and the site is now identified for a mixed tenure development of 50% affordable and 50% private properties. On this basis, the landowners were willing to enter into negotiations and the land was purchased in November 2014. 1.3 The community had been very resistant to the construction of council houses in the village but were willing to support a mixed tenure development. The community council identified a steering group who, together with the land owners, were fully involved in the design stages of the development. The community council therefore had no objections when the planning application was submitted. A building warrant application has been submitted and approval is expected in the near future. 1.4 When the project was tendered, high tender prices were received due to the site, topography, the costs of servicing phase 2 of the development and the geographical factor. 1.5 The land identified for the private units can be land banked by the Council to be marketed when the private market improves. The land has been valued at around £400k. 1.6 The Scottish Government has approved £240k of grant assistance for the development which will be lost if the development does not proceed. The Scottish Government is keen to see the project completed. 1.7 It is proposed to offset the high costs with £400k from the Second and Empty Homes funding in the Strategic Housing Account which has been identified as funding to assist with high cost developments. It is proposed that this sum is repaid to the Strategic Housing Account when the land is marketed. 2 OFFICER RECOMMENDATIONS The Committee agrees: 2.1 to proceed with the development of the 8 units at Norrieston Glebe, Thornhill; 2.2 to land bank the private area of the site to be marketed when the private market improves; and 2.3 that £400k of Strategic Housing Account funding be allocated to the project with a view to this sum being repaid to the Strategic Housing Account when the site is successfully marketed. 3 CONSIDERATIONS 3.1 The site at Norrieston Glebe, Thornhill (shown on the location plan attached as Appendix 1 to this report) was first zoned as an affordable housing site in the Stirling Local Plan 1999. The site encompassed land owned by a local farmer and the Glebe land owned by the Church of Scotland. Neither owner was willing to sell the land at an affordable valuation which is significantly lower than a market value and can often result in a NIL value. 3.2 The Council’s Housing Needs and Demand Assessment identifies a significant unmet need for affordable housing in villages in western rural Stirling. 3.3 Initially Rural Stirling Housing Association entered into discussions with the land owners but could not reach agreement and made the decision that they could not proceed with the development. 3.4 The Church of Scotland made a representation during the consultation period of the Stirling Local Development Plan requesting that the site be zoned as mixed tenure rather than the existing 100% affordable zoning. This was accepted by the planning department and, as the Council now had a new build programme, this resulted in the owners showing a willingness to begin negotiations with the Council. 3.5 In addition to the reluctant owners, the local community were very opposed to a development of council houses in the village. When the Council began to prepare proposals for 8 council houses as the first phase of the development, the community council set up a steering group to consider the design and this group worked closely with the Council’s architect in the preparation of the drawings. This resulted in a planning application being approved with the support of the local community representatives. 3.6 Due to the topography of the site which slopes steeply, initial designs confirmed that the site would be able to accommodate a total of around 14 units. The original zoning had identified a capacity of 21 units on the site. Phase 1 consists of the following house types which have been identified following consultation with the Council’s strategic housing officers and housing management teams to reflect the identified housing need for the village: 2 x 1 bed cottage flats 2 x 2 bed cottage flats 2 x 2 bed semi-detached houses 1 x 3 bed detached house 1 x 4 bed detached house It is anticipated that the land available for Phase 2 can accommodate approximately 6 large properties. 3.7 The properties have been designed to Housing for Varying Needs standards and include high levels of insulation with an energy efficient heating system to ensure that they can be heated affordably. 3.8 The Scottish Government has approved a grant of £240k to assist with the project and they have indicated that they would prefer to see the project proceed. This proposal was approved by the Scottish Government a number of years ago and the grant cannot be transferred to another project. Therefore, it will be lost if the development does not proceed. 3.9 It has been agreed with our strategic partners in the Strategic Housing Investment Programme, that a share of the Second and Empty Homes funding within the Strategic Housing Account can be used by the 3 providers, Stirling Council, Rural Stirling Housing Association and Forth Housing Association to assist with high cost projects. It is therefore proposed that £400k of this funding can be used to offset the anticipated higher costs associated with a rural development. 3.10 The Council will be left with a land asset that has been valued in the region of £400k which can be used to repay the SHA when the land is successfully marketed . 4 POLICY/RESOURCE IMPLICATIONS AND CONSULTATIONS Policy Implications Equality Impact Assessment No Strategic Environmental Assessment No Single Outcome Agreement Yes Diversity (age, disability, gender, race, religion, sexual orientation) No Sustainability (community, economic, environmental) Yes Effect on Council’s green house gas emissions Increase Strategic/Service Plan Yes Existing Policy or Strategy Yes Risk Yes Resource Implications Financial Yes People Yes Land and Property or IT Systems Yes Consultations Internal or External Consultations Yes Equality Impact Assessment 4.1 The project presented in this report has been considered under the Council’s Equalities Impact Assessment Process and was assessed as not relevant for the purposes of Equality Impact Assessment. Strategic Environmental Assessment 4.2 The proposal does not relate to a qualifying plan, programme or strategy and is not covered by the Environmental Assessment (Scotland) Act, 2005. Single Outcome Agreement 4.3 The proposed development increases the supply of social and affordable housing in a pressured area and provide a high quality development of energy efficient and accessible housing for those in housing need. It will also provide accommodation to be let to tenants with mobility difficulties. Other Policy Implications 4.4 The proposed project will support the achievement of the Council’s Homelessness objectives, support the implementation of the Housing Services Business Plan and assist in addressing fuel poverty. Resource Implications 4.5 The resources required to acquire the site and the cost of construction is accounted for in the 2014/15 Housing Revenue Account capital programme. 4.6 It is proposed that £400k of Strategic Housing Account funding will be used to contribute towards the high costs of the development and this will be repaid when the land purchased for Phase 2 is sold on the open market. Consultations 4.7 The local community council, development steering group and land owners were closely involved in the preparation of the design of the properties and site layout. 4.8 The proposal was fully discussed and agreed with the SHIP Review Group which involves Board members from the Council’s strategic partners consisting of Forth Housing Association, Rural Stirling Housing Association, Paragon Housing Association, Raploch URC, the Loch Lomond and Trossachs National Park Authority and both Council and National Park planners. 4.9 The SHIP Review Group also includes the housing portfolio holder and councillors from each of the opposition parties. Tick ( ) Council and Decision Making Committees only to confirm The appropriate Portfolio Holder(s) has been consulted on this report VW ME The Chief Executive/appropriate Director has been consulted on this RS report 5 BACKGROUND PAPERS 5.1 Housing Capital Investment Programme 2011/12, Stirling Council, 17 February 2011. 5.2 Stirling Council Innovation and Investment Fund Bid Document for Funding for New Council House Building, 31 May 2011 5.3 Scottish Government Innovation and Investment Fund New Council Building Approval Letter 15 September 2011 5.4 Planning approval details 6 APPENDICES 6.1 Appendix 1 - Site Location Plan. Author(s) Name Designation Telephone Number/E-mail Sandra McGinley Project Officer, Strategy and 237722 Development Section John MacMillan 237718 Housing Property Manager Approved by Name Designation Signature Robert Steenson Director of Housing and Environment Date 25 March 2015 Service Reference .
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