Sheerwater Regeneration Members Briefing 28 January 2020 Ray - PowerPoint PPT Presentation

Sheerwater Regeneration Members’ Briefing 28 January 2020 Ray Morgan OBE Chief Executive

Comprehensive Regeneration Producing • 1,142 new homes • Extensive new leisure facilities at Bishop David Brown • New Central Park • New commercial and community buildings

Project Cost £m Land Acquisition 70 Development Cost 412 Project Cost 8 Sales & Marketing 2 492

New Homes Rent Sale Total 1 Bed Flat 315 59 374 2 Bed Flat 170 43 213 3 Bed Flat 25 15 40 2 Bed House 45 39 84 3 Bed House 145 130 275 4 Bed House 67 84 151 5 Bed House 2 3 5 769 373 1142 Total

Homes to Rent Kingsmoor Affordable Market Total 1 Bed Flat 192 84 39 315 2 Bed Flat 141 0 29 170 3 Bed Flat 17 0 8 25 2 Bed House 14 0 31 45 3 Bed House 66 0 79 145 4 Bed House 9 0 58 67 5 Bed House 0 0 2 2 Total 439 84 246 769

Delivery Timetable Phase Start Finish Leisure Jul-19 Dec-21 Purple Aug-19 Mar-21 Red May-21 Jun-22 Yellow May-21 Mar-23 Emerald Feb-22 Mar-23 Cyan Apr-22 May-23 Blue Dec-22 Nov-24 1 f 2

Delivery Timetable Phase Start Finish Orange Dec-22 Nov-24 Bronze Sep-23 Oct-24 Gold Jul-24 Jul-25 Cobalt Sep-24 Sep-25 Platinum Sep-24 Sep-25 Copper Dec-24 Dec-25 Park (Green) Sep-22 Nov-24

TDL Contribution to WBC • £8m HRA debt as properties demolished. • New commercial units at no cost. • New community buildings at no cost.

WBC Costs • Overhead Power Line £2.1m • Pinnacle £3.8m • Athletic Track £8m

Loan Facility • TDL Development Loan £116m • THL Asset Loan £290m • THL Revolving Loan £116m • Peak Aggregate Debt £350m

• THL loan repayments greater than net income. • Rents forecast to increase by CPI + 1%. • Revolving loan needed until 2068. • THL loan repaid by 2078. • Forecast THL surplus 2078 - £150m.

• Council can authorise funding to deliver the scheme. • Risk mitigation to include: - Seeking a project rate from PWLB. - Reviewing tender returns in October 2020. - Updating rental and sales outlook in October 2020.

Compulsory Purchase • “Compulsory Purchase Powers are an important tool to use as a means of assembling the land needed to help deliver social, environmental and economic change.” DCLG Circular, February 2018. • Major regeneration projects not possible without a CPO.

Compulsory Purchase • CPO made as a last resort. • Particularly useful where land is in unknown ownership, or ancient rights of way exist. • Significant progress in the voluntary purchase of residential properties:-

Compulsory Purchase • Voluntary Purchases:- � 120 properties to acquire Of which, � only 6 homeowners have not engaged with Council � 100 completed purchases � 4 contracts exchanged � 10 at “legals”/offer stage

Indicative Land Ownerships

Secure Tenants • 2017 – 326 secure tenants in red-line area. • Housing team sought to contact all secure tenants (letter/phone/door knock). • 28 secure tenants not engaged with Council. • January 2020 – 159 secure tenants moved to new accommodation.

Secure Tenants • Projection is that 71% of secure tenants will want to leave Sheerwater, with 29% wishing to remain and occupy a new property. • Last resort – notice of seeking possession coupled with offer of suitable alternative accommodation.

Next Steps Council February 2020 - Approve funding - Approve Executive undertaking - Approve process for CPO - Approve process for possession of secure tenancies

Next Steps Council April 2020 - Make CPO Council December 2020 - Approve tender return - Authorising start of next phase(s)