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Issue

Issue - meetings

Leamington House and Horatia House Update and Next Steps

Meeting: 13/10/2020 - Full Council (Item 8.)

8. Recommendations from the Cabinet Meeting held on 15 September 2020 pdf icon PDF 773 KB

To receive and consider the attached report and recommendations from the Cabinet meeting held on 15 September.

 

The exempt appendix 1 is under paragraph 3 so Council will need to move into exempt business by resolving to exclude the press and public if it wishes to discuss this at that time.

 

(Paragraph 3 relates to information relating to the financial or business affairs of any particular person or authority)

 

“that, under the provisions of Section 100A of the Local Government Act, 1972 as amended by the Local Government (Access to Information) Act, 1985, the press and public be excluded for the consideration of the following item on the grounds that the report(s) contain information defined as exempt in Part 1 of Schedule 12A to the Local Government Act, 1972”.

 

The public interest in maintaining the exemption must outweigh the public interest in disclosing the information.

 

Under the Local Authorities (Executive Arrangements) (Meetings and Access to Information) England Regulations 2012, regulation 5, the reasons for exemption of the listed item is shown above.

Additional documents:


Meeting: 15/09/2020 - Cabinet (Item 7.)

7. Leamington House and Horatia House Update and Next Steps pdf icon PDF 773 KB

Purpose: The joint report by the Director of Regeneration & Director of Housing, Neighbourhood and Building Services provides Cabinet with a progress update report including:

* Deconstruction Options Appraisal & Soft Market Testing

* Design Team Appointment

* Telecommunication re-siting

* Peregrine Falcons

 

Also to note the continued commitment to engage the wider community to explore the 'wider area improvements' and the incorporation into the design brief of all the feedback from the community engagement work undertaken in 2019 including the seven key themes that emerged from all the feedback.

 

1.         Build appropriate homes

2.         Make better use of green space and space for children

3.         No more student accommodation

4.         Consider wider area improvements

5.         Better parking options

6.         No tower blocks

7.         Re-provide the social housing lost when the tower blocks go

           

To report back the initial financial viability assessment of a development on the 'foot prints' of the two tower blocks based on an overall development of 440 units and including 272 social housing units to be held within the Housing Revenue Account

 

To seek permission from Cabinet to tender and appoint a contractor to undertake the deconstruction of the two tower blocks

 

To seek permission from Full Council to proceed with the wider development (described in paragraph 1.3 above) at an estimated total cost of £120m subject to:

 

* the development remaining viable through the design stages and remaining within certain other financial parameters

* the development remaining sustainably within the administrations agreed principles (section 5)

 

RECOMMENDATIONS

 

a)    That the Cabinet:

 

(1)  Notes the progress since the October 2019 Cabinet report.

 

(2)  Notes the output of the soft market testing for the deconstruction of the tower blocks.

 

(3)  Notes that the outline financial appraisal for an initial phase consisting of the two footprints is positive with the caveats noted in the financial implications. 

 

(4)  Approves a change to the Capital Programme for the use of the Housing Revenue Account's (HRA) Major Repairs Reserve (MRR) to fund the deconstruction and site preparation of the two towers up to a value of £10m.

 

(5)  Delegates authority to the Director of Regeneration in consultation with the Director of Housing, Neighbourhood and Building Services and the Section 151 Officer to tender and enter into contract with the preferred bidder for the deconstruction work following full evaluation of the tender.

 

b)   That City Council approves the following:

 

(1)  That the full deconstruction and redevelopment scheme for the two tower blocks is added to the capital programme in the sum of £120m.

 

(2)  That the scheme is funded by a suitable mix of HRA and General Fund Prudential Borrowing as determined by the S.151 Officer.

 

(3)  That the scheme can only proceed, including through its procurement gateways, if a satisfactory financial appraisal which demonstrates viability is approved by the Section151 Officer.

 

(4)  That, given the early stage of design, delegated authority be given to the Section151 Officer to vary the overall scheme cost and borrow as required but subject to the Section 151 Officer being satisfied that the associated financial appraisal demonstrates continued viability and acceptable risk and that the gross cost of the scheme does not exceed £145m.

 

(5)  In the event that the scheme varies significantly from the design parameters (described in section 5) and/or the gross cost exceeds £145m, even if viability can still be demonstrated, the scheme will not proceed without further approval from the City Council

Additional documents:

Decision:

1.    Notes the progress since the October 2019 Cabinet report.

2.    Notes the output of the soft market testing for the deconstruction of the tower blocks. 

3.    Notes that the outline financial appraisal for an initial phase consisting of the two footprints is positive with the caveats noted in the financial implications.  

4.    Approves a change to the Capital Programme for the use of the Housing Revenue Account's (HRA) Major Repairs Reserve (MRR) to fund the deconstruction and site preparation of the two towers up to a value of £10m.

5.    Delegates authority to the Director of Regeneration in consultation with the Director of Housing, Neighbourhood and Building Services and the Section 151 Officer to tender and enter into contract with the preferred bidder for the deconstruction work following full evaluation of the tender.

 

That the Council approves

1.    That the full deconstruction and redevelopment scheme for the two tower blocks is added to the capital programme in the sum of £120m.

2.    That the scheme is funded by a suitable mix of HRA and General Fund Prudential Borrowing as determined by the S.151 Officer.

3.    That the scheme can only proceed, including through its procurement gateways, if a satisfactory financial appraisal which demonstrates viability is approved by the Section151 Officer.

4.    That, given the early stage of design, delegated authority be given to the Section151 Officer to vary the overall scheme cost and borrow as required but subject to the Section 151 Officer being satisfied that the associated financial appraisal demonstrates continued viability and acceptable risk and that the gross cost of the scheme does not exceed £145m.  

5.    In the event that the scheme varies significantly from the design parameters (described in section 5) and/or the gross cost exceeds £145m, even if viability can still be demonstrated, the scheme will not proceed without further approval from the City Council.