Decision details

RESOLVED:

1.    That the financial modelling set out in the Part 2 paper which demonstrates that the recommended option in Part 1 to tender for a development and strategic housing management partner(s) for Extra Care Housing schemes on the sites delivers the highest financial benefit for the Council, be noted.

2.    That [Exempt minute E-5-20] of capital investment in the development of Extra Care Housing at the former Pinehurst Resource Centre site be approved, should investment up to this level be required by the Council when the tender for a development and strategic housing management partner(s) is conducted.

3.    That [Exempt minute E-5-20] of capital investment in the development of Extra Care Housing at the former Brockhurst Care Home site be approved, should investment up to this level be required by the Council when the tender for a development and strategic housing management partner(s) is conducted.

Reason for Decision:

This paper sets out the case underpinning the recommended change in delivery approach, demonstrating why tendering for a development and strategic housing management partner is expected to achieve the highest financial return for the Council.

Cabinet is asked to approve capital investment by the Council of up to [Exempt minute E-5-20] in the development of Extra Care Housing at the former Pinehurst Resource Centre site and [Exempt minute E-5-20] at the former Brockhurst Care Home site. The aim will be to avoid or limit as far as possible any capital investment by the Council. Capital investment will only be considered if the winning bidder in the tender for each site requires it as part of their tendered proposal for the development of Extra Care Housing at a site. The level of capital investment Cabinet is being asked to approve here has been capped at the value for each site that means that the modelled financial benefits of developing Extra Care Housing on each site would be no less than the opportunity cost of selling the land.  If a higher level of capital investment is required following the outcome of the tender, then the Extra Care project team will consider whether this is financially viable and acceptable to the Council.  A further report would then be brought back to Cabinet if appropriate to request approval for additional capital investment above the levels approved in this paper.

If Cabinet approves the capital investment requested for the two sites in this paper, then this potential capital investment will not initially be added to the Council’s capital programme. This is because the intention, if possible, is to avoid any capital investment. Once the tender has been conducted and preferred bidder(s) secured, then any capital investment required within the limits approved by Cabinet will be added to the capital programme at that point.

[The decisions on this item can be called in by the Adults and Health Select Committee]