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Decision details
Heather House and Royal British Legion site
Decision Maker: Executive
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
In 2021, the Policy & Resources Committee approved the Council pursuing a
comprehensive redevelopment of the site (including Heather House and the Pavilion Building). This has led to a successful planning application for a new community centre on the Heather House site and a new-build residential scheme of 11 dwellings on the Pavilion Building site. To help finance the new community centre, Officers are seeking approval for a CIL Community Contribution of £956,420. The scheme is included in the capital programme, approval is needed for the works cost and to appoint the contractor to deliver the scheme, as per the planning application, and to proceed with a tender exercise to procure a management provider for the proposed new community centre.
Decision:
RESOLVED: That
1. The works costs for Heather House and the Pavilion building sites be approved, in accordance with the approved planning application.
2. The Head of Mid Kent Legal Services, in consultation with the Lead Member, be authorised to negotiate and complete all necessary deeds and agreements arising from or ancillary to the application for planning permission.
3. The Director of Finance, Resources and Business Improvement, be given delegated authority, to appoint a contractor to carry out the necessary building works for the community centre and residential units; and
4. The Director of Finance, Resources and Business Improvement be given delegated authority, in consultation with the Lead Members for Leisure and Arts and Communities and Public Engagement, to approve the tender exercise for the procurement and appointment of an operator of the new community centre.
Reasons for the decision:
Heather House is the only community facility still owned and directly managed by the Council. It is located on Bicknor Road backing onto the Parkwood Recreation Ground, providing facilities to enable indoor sports and leisure activities. It is currently only used by Maidstone Boxing Club. Adjacent is the Pavilion Building, currently on a short short-term lease to the Weavering Warriors Rugby Club, that can be ended at any time, by either party, on giving two months’ notice.
Planning permission has been agreed for a new community centre on the Heather House site, and a new-build residential scheme of 11 houses on the Pavilion Building site. Comprising of 4 First Homes and 7 private rented houses, giving the best financial return. Whilst the initial approval is for 7 x private rented houses, Officers will use best endeavours to secure grant from Homes England in due course, at a level that would allow the delivery of those homes for Affordable Rent.
First Homes are discounted market sale housing, meeting the definition of
‘affordable housing’. These units must be discounted by a minimum of
30% against the market value. After the discount the First Sale price
must be no higher that £250,000. First Homes are the government’s
preferred discounted tenure and should account for at least 25% of all
affording housing delivered.
The proposal for the Pavilion Building site is a mixed tenure scheme of 11
houses (7 for private market rent and 4 for First Home). The following
table shows the schedule of new accommodation:
Type of Unit |
Unit Size |
Number |
First Home Market Sale per unit |
Market Rent per unit (PCM) |
Market Rent per unit (annually) |
3 Bed 5 Person |
93m3 |
4 |
£250,000 |
- |
- |
3 Bed 5 Person |
99m2 |
3 |
- |
£1500 |
£18,000 |
3 Bed 5 Person |
93m2 |
1 |
- |
£1325 |
£15,900 |
4 Bed 7 Person |
121m2 |
3 |
- |
£1850 |
£22,220 |
Totals |
1125m2 |
11 |
1,043,000 |
£8225 |
£136,500 |
The Scheme
Full scheme information is detailed within the Design and Access
Statement that was submitted with the Planning Application.
This project will significantly improve the image, visual appearance and
public perception of the community centre and contribute towards the
regeneration of the area. This scheme will see the delivery of much
needed new, high-quality housing and a new modern multi-purpose
community facility within the existing footprint of the Heather House &
Pavilion sites.
The new 580m2 community centre, is designed to accord with the latest
accessibility and energy efficiency standards, resulting in lower long-term
maintenance and running costs. The facility will appeal to many clubs and
organisations, providing opportunity for local community involvement of all
ages. It will include one court sports/community social use hall, the
height of which will be capable of accommodating badminton, a kitchen,
storage, bar and social lounge area, as well as further ancillary areas that
will provide for field-based sports. The community centre has been
designed in accordance with guidance produced by Sports England for community halls, together with Rugby Football Union design guide for
changing rooms and clubhouses. The scheme will increase more usable
open space provision by repositioning the new community centre further
away from the area of ancient woodland on the southern/western
boundary. Establishing the required buffer zone of 15m and giving back
areas of existing small underused open space taken up on the Pavilion
Building development site area.
The housing is within close proximity of local facilities and transport
services. The development will contribute to the surrounding built
environment. The high-quality family homes all meet Nationally Described
Space Standards, providing well-designed active frontage with plenty of
green spaces, private parking, and rear gardens. Natural daylight has been
a key consideration, which has informed the orientation of the homes,
position of the gardens and location of glazing. An energy consultant was
appointed to provide guidance on achieving the necessary thermal
requirements and energy efficiency measures. The residential scheme will
benefit from 4 photovoltaic panels per home, these will provide renewable
energy from sunlight.
Financial Commitments
The financial summaries for both sites are shown at Exempt Appendix 1 & 2. There is a negative NPV of -£756,223 on the new community centre,
however, a high NPV of £1,412,927 on the residential element of the
scheme. The amalgamated scheme for both the community centre and
residential site is positive, based on a private market rent and First Homes
sale. This demonstrates a financially viable scheme and meets our
minimum financial criteria.
The procurement exercise has provided a scheme cost for the entire
development, details of the costs from the preferred contractor are
detailed in the exempt appendix.
The Council have submitted a successful bid for Land Release Funding, for
the proposed redevelopment of the entire site totalling £100,000. This will
go towards the demolition costs of both buildings. The Land Release Fund
is a cross-government initiative between the Ministry of Housing,
Communities and Local Government and One Public Estate which is
delivered in partnership by the Local Government Association and the
Cabinet Office.
The financial model assumes a successful CIL bid of £956,420; that won’t
be determined until the summer. In the event that this is unsuccessful,
monies from the £5m Infrastructure funding in the recently adopted
capital program, will be utilised to provide subsidy to the community
centre.
The Policy & Resources Committee report from February 2021 (attached
background paper) detailed that income from the new housing, could
provide cross-subsidy for the new community centre. However, this will
no longer be the case as the profitability of market sale has been eroded
by build cost inflation. Meaning that private sale is no longer the most
attractive tenure for the non-First Homes units.
Contract Procurement
A procurement exercise has been undertaken to source a single contractor, to enable maximum efficiency to be gained from running the community centre and residential builds concurrently.
The tender documentation was issued via the Kent Business Portal as an open tender invitation on 31 October 2023. Completed tender
documentation was returned by three contractors. The final analysis of the
tender return was carried out by FFT in February.
Based on the tender submission, Officers have a preferred contractor they believe is the most competitive and advantageous of the three tenders
received. The preferred contractor submitted a build programme estimating start on site in November 2023, completion of the new community centre in November 2024 and houses in June 2025.
A tender exercise to procure an operator for the community centre is the next step. Officers are looking to grant a 25-year lease (contracted out of the landlord and tenant act 1954) on a fully repairing and insuring basis, to an organisation to operate and manage the facility, for the benefit of the
local community. The Council would expect that the facility would be
available to hire at reasonable rates to the wider community, for example
private parties through to community activity groups.
Officers intend to proceed via a formal tender approach, contacting
potential interested parties to inform them of the tender exercise and
encouraging them to make an application. The tender exercise would seek
interest from suitably experienced organisations who can manage and
maintain the building in a way that will benefit the whole community.
Officers will require that the tender bids show detailed information
regarding the day-to-day operation of the building, planned activities / use
and included details of opening hours. The submissions will need to show
an understanding of compliance with Health and Safety and all other
statutory regulations. It is anticipated that the tender pack will be
published on the Kent Business Portal in the summer of 2023, with an
estimated period of eight weeks from tender start to the lease being awarded.
Alternative options considered:
Option 1: the preferred option, to appoint a contractor to build out the
entire scheme, comprising of the new community centre and 11 houses, as
per the planning application and to procure a managing agent for the
operation of the community facility.
Option 2: Do nothing, leave Heather House community centre and the
Pavilion building site to slowly decay. Whilst keeping the Rugby club on a
short-term lease. This is not recommended as there would continue to be
uncertainty as to the future of the building and site.
Option 3: Demolish both Heather House and the Pavilion building. The
potential loss of a community centre could impose a significant and negative
impact on the existing users and surrounding neighbourhood and lose the
opportunity to bring about social change and improve the quality of life in
the local area.
Reason Key: Expenditure > £250,000;
Wards Affected: Park Wood Ward;
Contact: Andrew Connors, Housing Enabling Officer Email: andrewconnors@maidstone.gov.uk, Alison Elliott Email: alisonelliott@maidstone.gov.uk.
Publication date: 18/04/2023
Date of decision: 18/04/2023
Decided: 18/04/2023 - Executive
Effective from: 28/04/2023
Accompanying Documents: