17 abc Public report

Report to Cabinet 18 October 2005

Report of Management Board

Title New Deal for Communities – Wood End, Henley Green, and Manor Farm Masterplanning

1 Purpose of the Report

This report refers to the New Deal for Communities (NDC) in Wood End, Henley Green and Manor Farm, and the masterplan for the area. It details the progress made since the last report to you in April 2005, seeks your endorsement of a preferred developer, and your approval to the proposals for undertaking detailed negotiations with our partners and the preferred developer, to enable a final plan to be brought back to you and agreed.

2 Recommendations

2.1 Cabinet is recommended to:

a) Endorse the selection of the Keepmoat, Bovis and Westbury consortium as the preferred developer for the NDC master plan, and the reserve developer status for those identified in the report

b) Endorse the next steps outlined in section 5

c) Authorise detailed negotiations with partners including the NDC and Whitefriars Housing Group, and the preferred developer, to agree and facilitate the delivery of a final plan

d) Authorise your officers to work with partners and the preferred developer, and to negotiate appropriate legal structures for the delivery of the plan as outlined in section 6

e) Agree to appoint the City Council's Director of Finance and ICT and Director of Community Services as its representatives on the proposed Partnership Project Board

f) Authorise expenditure of up to £500,000 out of the existing budget allocation as outlined in paragraph 6.7, to move the proposals towards an agreed detailed plan and legal structures for delivery, in a way that secures the Council's position.

g) Support the NDC in delivering their plans for an early programme of NDC funded environmental works and a combined leisure and neighbourhood centre – paragraph 5.6

h) Request that further reports are brought back before any formal commitments are made 3 Background

3.1 Cabinet will be aware that the NDC through its Board has developed a master plan for the area, which is designed to support and extend their existing programme by:

• Providing a design framework for the physical environment, including housing, open spaces, community facilities, leisure facilities, roads, shops and employment • Securing major additional investment to deliver these improvements, through a partnership harnessing private investment for the benefit of the area

3.2 The objectives of the master plan are to :

• Achieve comprehensive regeneration • Develop a stable community with a rebalanced mix of housing tenure • Improve the quality of life for local people and encourage those who want to stay • Attract more people to live and work in the area • Improve a range of leisure, community and employment facilities • Improve transport and environment

3.3 The essence of the proposals to achieve this are :

• A 10 year programme on a phased basis • The major landowners, Whitefriars and the Council, making their land available to a developer • A major house builder, investor and developer creating a homes for sale market which will build new homes for sale, new social rented housing and infrastructure, e.g. roads, open space • The new social rented homes will be passed back to Whitefriars by the developers in return for their existing land and homes which are required for the project • The partners will ensure a balanced scheme • The NDC will resource a number of community facilities such as a leisure centre • Whitefriars will refurbish their remaining homes • The Council will use their powers to support delivery • The homes for sale, social housing, infrastructure and community facilities are effectively the benefits of these investments by the partners and the developer.

3.4 The key features of the plan include :

• Major rebuilding of housing areas including much of Wood End and Manor Farm, and some parts of Henley Green • Retained and improved housing in the more recently built areas of Wood End, the bungalows on Manor Farm, and parts of Henley Green and Deedmore Road • New road links into and out of the area and better bus links • Improved green areas • A range of employment, community and leisure facilities across the area • Improved safety

2 4 Selecting a Preferred Developer

4.1 In April 2005 Cabinet agreed to: • The issuing of an invitation to short listed developers to submit outline proposals – the ISOP – inviting them to bid for the opportunity to deliver the housing and infrastructure elements of the whole scheme over a 10 year programme, requiring them to design and commit to undertaking a phase 1, together with a "framework" that will facilitate, although it can not guarantee, the delivery of all subsequent phases • The respective roles and responsibilities of each of the relevant partners • Authorise expenditure of up to £100,000 • Establish a member advisory group

4.2 The following actions have since been successfully completed on time:

• Issuing of ISOP to developers in April, followed by a developer briefing day • 3 submissions received in July, followed by a presentation from each developer and visits to their schemes in August • During July, August and September a detailed technical appraisal of the developers' proposals was undertaken by specialist consultants – Robson Rhodes, WS Atkins, FPD Savills and Faithful and Gould – which examined the proposals to ensure they were deliverable. This appraisal accounted for 80% of the evaluation and covered the technical and design, financial and commercial issues of the proposals • Written questions and answers and formal interviews with each developer in September • Selection panel of eight people, including Councillor Kevin Foster and Carl Pearson, Head of Regeneration, 4 NDC Board Members and 2 Whitefriars representatives • Selection as the "preferred developer" of the Keepmoat, Westbury and Bovis consortium

At each stage all partners and the community have been engaged in the process. Resident involvement has been through resident NDC Board members, and a resident monitoring group.

4.3 Submissions were received from three developers:

• Bellways, Wates and Taylor Woodrow • Keepmoat, Westbury and Bovis • Lovells

Each of the submissions was well prepared, considered and substantial in terms of the work put into them. They were tested through the above process and against criteria set out in the ISOP. Partners can be satisfied that the response to the invitation was positive, and provides a good basis for the delivery of a plan. As a result the selection panel were able to agree -

"Preferred Developer" - Keepmoat, Westbury and Bovis

"Reserves" - Bellways, Wates and Taylor Woodrow, and also Lovells

4.4 This is a key stage in the project and the successful selection of a preferred developer is a major step forward. The selection was based on their design and financial proposals, but it is important now that we work to develop a detailed set of proposals, plans, financial arrangements, legal structures, etc which together will meet the objectives of all stakeholders and can form the agreed master plan to which all partners can formally commit.

3 5 Next Steps

5.1 The masterplan is a very large, complex and long programme of housing – led regeneration for the area, and the north of the city. As a result it demands a large-scale programme of intense activity over the next 6 months or so, to move the proposals of the preferred developer, towards an agreed plan to which all partners can commit. The objective is to have a fully detailed and agreed plan with financial and legal commitment by April 2006, although the exact timing will be clearer as we move through the work plan.

5.2 Key next steps and indicative timescales include:

• October 2005 – partners endorse selection of preferred developer • November 2005 - early programme of NDC environment work • Late 2005/ early 2006 - negotiations around exact content of the scheme and phase 1 - consultations with the community - reference to a planning forum meeting - negotiations around legal structures and financial details • March 2006 - planning application • March 2007 – planning approval • July 2007 - start of main programme on site

5.3 The key elements of the masterplan remain unchanged, and the key issues for the Council included in the April report to cabinet are still relevant. They include: • Community engagement • Commitment, finance and resources • Housing – the NDC area and the city • Planning and land issues • Community faclilties and regeneration

5.4 Actions and Influence

The council's role in this programme will have several perspectives, which are likely to influence the actions and approvals that will ultimately be required. The key ones include –

Commitments and Decisions for the Council - identified in the previous report - • Support the project as a key partner across a range of services • Make its land available within the area • Use its compulsory purchase powers to support land assembly • Deliver a leisure centre in conjunction with the NDC and their funds • Deliver a country park with resources from the project • Enter into formal contracts with partners

Undertakings required from others – will include – • Formal commitment from the developer to undertake phase 1 • A framework for the entire scheme • Commitment from Whitefriars to make their land available for the project, refurbish retained homes, and undertake moves of residents within the area to an agreed programme • Commitment from NDC to fund leisure centre and environmental improvements, and undertake community engagement • Indemnity for the Council for any property purchases required in advance • Agreement of a displaced owners scheme and a residents charter

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Issues to influence – • The scale of development and the provision of social housing which has a minimum requirement of 1,000 new social rented homes • The phasing and process of enabling people to move into new homes from existing homes • Ensuring that the programme fits with the council's housing strategy, and does not impact adversely on other areas of the city or the allocation of accommodation • Delivery of appropriate community facilities to ensure the area is sustainable • Design and quality

5.5 All of these key issues and many others will need to be the subject of detailed negotiation and agreement over the coming months

5.6 The NDC Board agreed on 22 June 2005 the development of a combined leisure and neighbourhood centre funded through the NDC programme. Work on commissioning design feasibility work and business planning services, is already in hand and a report is elsewhere on your agenda. At the same time the NDC are beginning work on site, as part of a project to make environmental improvements in the areas which are not to be redeveloped, an important early start on the ground in preparation for the main programme of works. This project will commit significant NDC resources to continuing the momentum of improvements in the area.

6 Partnership Structures and Resources

6.1 This is an area where proposals have developed further and been refined since your April report. There are essentially two periods of activity to consider – the first being the period of negotiations over the next six months or so, and the second the delivery of the agreed plan over a longer period.

6.2 Earlier reports had envisaged that stakeholders, possibly including the developers, would achieve this through the formation of a joint venture company. The current view of partners is that this might be an overly complex mechanism to set up and run and it is likely that the developers will establish their own corporate entity, with which we can contract directly. In the circumstances the proposals have been adjusted as follows.

6.3 In the period during which negotiations are taking place (and beyond) the proposal is to establish a Project Board made up of 6 people, 2 from each partner, who would direct and shape the project and the process. The suggested nominations for the council would be John Bolton, Director of Community Services and Angie Ridgwell, Director of Finance and ICT. A project team working to this Board would ensure the delivery of the agreed actions. The project board representatives for the Council would have responsibility for the negotiations in liaison with the Cabinet Advisory Group and be charged with bringing back to the Council the relevant proposals for consideration and approval.

6.4 The Council have been seeking to find the best possible structural options to ensure that there is clear accountability for the work of the developer, but ensuring that there is close partnership between Whitefriars, the Council, the NDC Board and the developer. Officer advice is that the best ways of doing this is to have the developer directly contracting with Whitefriars to enable there to be clearly identifiable directing of the project, but for there to be related legal agreements which link Whitefriars, the Council and the NDC Board

5 together in relation to the project. This is the approach being recommended by the Council's legal officers.

6.5 NDC resources will continue until April 2006 to fund the significant costs of preparing for the implementation of the masterplan – they include a range of legal, financial, technical and design advice.

6.6 There is now a need for the Council to intensify its support for the project over this period and also to ensure its position is secured as an individual partner within this framework. This will range across issues such as financial, legal, design, housing, regeneration and co- ordination. To achieve this it will be necessary to apply more significant and diverse employee time from within existing resources, also to incur additional costs to procure external advice across these areas, and to a limited degree some additional internal capacity particularly around co-ordination, project management and regeneration elements of our input.

6.7 In your April report you authorised the expenditure of £100,000 from within the existing capital programme item for North East Regeneration and Riley Square. We have achieved progress to date without spending the sum. The eventual scale of costs was estimated at £300,000 - £500,000, but it was not proposed to commit that until such time as the developer response was received. Your officers now consider this work is necessary and seek authority to commit up to £500,000 on this work. The key elements will be : • Interim project manager (for 12 months) • Legal advice • Financial and tax advice • Technical support – regeneration, planning, etc

At the same time your Management Board will review other inputs from existing services, which will be appropriate.

6.8 It has been agreed that Whitefriars will set up a dedicated project delivery team with at least two full time members of staff, one to be an Assistant Director, to undertake the work required of them to deliver the next phase of the project. It is proposed that the Council's interim project manager will work as a member of this team, and provide the link back into the Council to ensure the work needed from the Council is also completed. The project team will be accountable to the Project Board. A Memorandum of Understanding between partners will be agreed to define and direct the work, reinforced by the key legal agreements set out in paragraph 6.4.

7 Other Specific Implications

Implications No

(See below) Implications Area Co-ordination 9 Best Value 9 Children and Young People 9 Comparable Benchmark Data 9 Corporate Parenting 9 Coventry Community Plan 9

6 Implications No

(See below) Implications Crime and Disorder 9 Equal Opportunities 9 Finance 9 Health and Safety 9 Human Resources 9 Human Rights Act 9 Impact on Partner Organisations 9 Information and Communications Technology 9 Legal Implications 9 Property Implications 9 Race Equality Scheme 9 Risk Management 9 Sustainable Development 9 Trade Union Consultation 9 Voluntary Sector – The Coventry Compact 9

7.1 Neighbourhood Management

The masterplan addresses the needs of priority neighbourhoods within the North East of the city, and is expected to have a positive impact across neighbouring areas. Resident involvement has included a wider area than the NDC, working with Neighbourhood Management.

7.2 Children and Young People

The masterplan contains comprehensive regeneration proposals including provision for children and young people across a range of facilities.

7.3 Coventry Community Plan

Many of the key themes in the Community Plan are central to the work of the masterplan, in particular those of housing, employment, transport, environment, community safety, and equalities and communities.

7.4 Crime and Disorder

Secured by Design principles will be incorporated into the masterplan proposals and the outcomes of the exercise will be used in the development of projects in the NDC programme to address issues of Crime and Disorder.

7 7.5 Equal Opportunities

The masterplan has engaged with and involved a widening cross-section of the community in the WEHM area. It also addresses the needs of communities in Wood End, Henley Green, Manor Farm and Deedmore Road, which are amongst the most disadvantaged areas of the City.

7.6 Finance

The Council's financial input to the masterplan will be as follows : • £500,000 from the existing capital programme allocation to ensure that the Council's interests are secured • making Council land available at nil consideration • Council officers' time to take the project forward

It is possible that the Council may need to increase the resources it provides to the project in the form of either direct funding, indirect funding (such as officer time) or cashflow assistance to ensure the particular elements of the project proceed at the required level and within the required timescale. The financial aspects of the masterplan will be closely monitored by Council officers to ensure that appropriate mitigation strategies are in place to minimise any financial risks to the Council from it's involvement in this complex project.

7.7 Impact on Partner Organisations

The masterplan is NDC led and requires the active involvement of partner organisations, particularly the City Council and Whitefriars Housing Group.

7.8 Legal Implications

The proposals in this report will have significant legal implications for the City Council. Issues in relation to pooling of land, disposals of best consideration, and other issues will require detailed consideration. All legal arrangements will be subject to the Director of Legal and Democratic Services being satisfied that the Council is adequately protected. At this stage, all that is being sought is an "in principle" decision, and further reports will be brought back before any legal contracts are agreed.

7.9 Property implications

The principle property implications are covered in paragraph 8.5. of the April report.

7.10 Risk Management

This report identifies key issues and risks within this major complex regeneration masterplan, and the proposals for dealing with them. It is important to understand that these will vary as the project develops, and the formal risk register will now be updated to reflect the current position. It can be monitored by the Member Advisory Group and included within any future reports to members. It will include the following key areas from within this report, together with others as necessary, and identify mitigation and management actions.

• Delivering the Resources Partners are working together with the community and the preferred developer to secure private investment from major house builders, built around the roles and responsibilities of each partner. There is a need to develop a homes for sale market

8 which supports this investment, in a way that commits resources for phase 1 and establishes a financial and development framework which optimises but cannot guarantee the delivery of later phases. • Meeting Community Needs Community engagement has been central to the masterplan and the needs of the community as expressed within it. Responses to the ISOP were considered against these criteria, and residents will have further opportunities to comment on plans through consultation and planning processes.

• Partnership Working Partners are agreeing their roles and responsibilities, which will be agreed in detail as part of a joint project plan, to ensure that the appropriate commitments are delivered, prior to any legal commitments being made.

• Housing and Infrastructure The masterplan specifies the number of social rented and affordable homes to be built, and Whitefriars homes to be refurbished. Social and affordable housing will vary over the programme, in any event be a minimum of 10% in any phase of development, and is likely to constitute a smaller part of the earlier phases of development than the later. Proposals will also include the building of homes for sale and the final balance of tenure will have to be agreed with the developer. The timing and delivery of housing and infrastructure will need to be balanced together, to deliver an integrated plan.

• Planning and Land Issues Partners are developing a strategy to assemble the land needed for the masterplan, in a way which does not expose the council to any financial risks.

7.11 Sustainable Development

The masterplanning exercise will address sustainable development as the brief requires the following to be addressed: the need to make the best use of land; the encouragement of walking, cycling and the use of public transport; putting people before the traffic and reducing the need to travel; conserving and enhancing environmental quality, seeking a range of facilities adequate to meet the needs of all the members of the community; and designing buildings to be adaptable in use and efficient in their use of energy.

7.12 Voluntary Sector – The Coventry Compact

In the spirit of the Coventry Compact, NDC proactively works in partnership with the voluntary sector who is represented on the Partnership Board and have membership in individual Task Groups.

8 Monitoring

8.1 The masterplan is led by NDC and the proposals as outlined in this report are subject to the approval of the NDC Board and Whitefriars Housing Group. The next steps are outlined in Section 5 of this report, and the recommendations require further detailed reports on detailed arrangements prior to any final commitment being made by the City Council

9 Timescale and expected outcomes

9.1 The timetable is dependent on partners and an anticipated timetable is included at paragraph 5.2.

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List of background papers

Proper officer: Stella Manzie - Chief Executive

Author: Trevor Howard, City Development Directorate Telephone: 024 76 832779

(Any enquiries should be directed to the above)

Other contributors:

John Daly – Finance & ICT Directorate Stephen Rudge – Social Services and Housing Directorate Carl Pearson – City Development Directorate Chris Hinde – Legal and Democratic Services John Payne – Neighbourhood Management James Russell – City Development Directorate Nigel Clews – City Development Directorate John Venn – City Development Directorate Roland Crooke – NDC Masterplan Manager Lyn Wassell – Whitefriars Housing Group

Papers open to Public Inspection

Description of paper Location

Exhibition Boards NDC Office, Hillmorton Road, Wood End

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