Agenda item - King Alfred Development

Report of the Executive Director Economy Environment & Culture (copy attached)

RESOLVED: That the Committee –

(i)            Agreed that officers should continue to negotiate a final Development Agreement with Crest Nicholson with a view to entering into the Development Agreement before the end of January 2019;

(ii)          Noted the draft Affordable Housing Provisions included at Appendix 1, and that these are subject to ongoing negotiations, and notes with grave concern that this was an amendment to Crest’s Final Tender;

(iii)         Noted the intention for officers to prepare and issue a ‘standstill letter’ advising Bouygeus Development of the change, in line with procurement regulations;

(iv)         Noted that there would be a further report brought to the Committee in January 2019 to agree the final Development Agreement;

(v)          Agreed to explore alternative options for the delivery of the redevelopment of the King Alfred site, including delivery of a Sport & Leisure complex for Hove, if the development agreement is not agreed by the end of January 2019.

89.1    The Committee considered the report of the Executive Director Economy Environment & Culture which advised the Committee on the developments made since the appointment of Crest Nicholson in partnership with the Starr Trust as the preferred developer of the King Alfred site.

89.2    The Chair noted that an amendment had been submitted from the Green Group and asked Councillor Mac Cafferty to propose the amendment.

89.3    Councillor Mac Cafferty proposed the following amendment to Recommendation 2.2:

2.2 Notes the draft Affordable Housing Provisions included at Appendix 1, and that these are subject to ongoing negotiations, and notes with grave concern that this is an amendment to Crest’s Final Tender;

Councillor Mac Cafferty said that the original amendment had additional elements, but they had been withdrawn on legal advice. He said that he was very concerned with delay, and with the comment from Crest that the viability of the scheme was challenging because of the high cost of meeting the Council’s requirement to build the leisure centre on the site, due to the cost of having to provide basement parking and the requirement for 20% affordable housing on the site.

89.4    Councillor Wealls said that the Conservative Group shared the Green Groups anger, and given the length of time which asked if Crest had been serious about the development, and was frustrated that the matter had not been pushed along.

89.5    The Chair agreed that the matter was incredibly frustrating, and there always one more thing which was raised to delay the process, which was why the final Recommendation was to explore alternatives if the development agreement was not agreed by the end of January 2019.

89.6    The Executive Director Economy Environment & Culture said that officers were pushing things along as much as they could. He accepted that the Council were asking a lot from the site, and noted the slowdown in the residential sales market, and increase in construction costs were factors, and the Council would look closely at Crest’s latest proposals.

89.7    Councillor Janio said the city needed a new sports centre and additional housing, and said the current administration had not dealt with this seriously, and said that if the Conservatives were in administration after the elections and nothing happened in three years he would resign.

89.8    The Chair said he hoped that this would not turn into a political football, and the important thing was to get the right development for the city.

89.9    Councillor Bell referred to the Development Agreement in the agenda, and was concerned that paragraph 4.39 said that affordable housing would be 20% of the total number of residential units, unless that was modified by the planning authority. He said the Council were the planning authority, and therefore were they asking for a reduction of the 20% before they continue with the development? The lawyer advised that the Council were going into the development as land owner rather than the planning authority.

89.10  The Chair said that for the public record, any members on this Committee who were also on the Planning Committee weren’t taking any decisions made here in prejudice of their independence on the Planning Committee. Councillor Mac Cafferty said that the Planning Committee would make decision based on the information before them.

89.11  Councillor Peltzer Dunn referred to paragraph 2.1 and asked if there was sufficient time for officers to negotiate a Development Agreement with Crest Nicholson before the end of January 2019. He noted that the recommendations only said with a ‘view’ to entering into an agreement rather than signing an agreement, and they were therefore rather feeble. The Chair said they were conditional rather than feeble, and would allow us to get to a point where an agreement could be made by this committee.

89.12  The committee voted on the amendment and they were agreed.

89.13  RESOLVED: That the Committee –

(i)            Agreed that officers should continue to negotiate a final Development Agreement with Crest Nicholson with a view to entering into the Development Agreement before the end of January 2019;

(ii)          Noted the draft Affordable Housing Provisions included at Appendix 1, and that these are subject to ongoing negotiations, and noted with grave concern that this was an amendment to Crest’s Final Tender;

(iii)         Noted the intention for officers to prepare and issue a ‘standstill letter’ advising Bouygeus Development of the change, in line with procurement regulations;

(iv)         Noted that there would be a further report brought to the Committee in January 2019 to agree the final Development Agreement;

(v)          Agreed to explore alternative options for the delivery of the redevelopment of the King Alfred site, including delivery of a Sport & Leisure complex for Hove, if the development agreement is not agreed by the end of January 2019.