Issue - meetings

The recommendations of Executive in respect of the Sheerwater Regeneration scheme were introduced by Councillor Forster, Portfolio Holder for Key Projects.  The scheme was no longer affordable and the recommendations sought to end the development agreement with Thameswey.  Under the proposals, Thameswey would complete the three phases currently under construction (yellow, copper and red).  The ratio affordable housing would also change.

The Council remained committed to delivering the scheme and would be consulting residents on the next steps, including options such as refurbishing properties rather than demolishing them.

The Members of the Council considered the impact of the proposals, in particular on the residents of Sheerwater, noting that properties had been left empty for far longer than had been intended.  The ambition to complete the scheme was welcomed, together with the intention of taking into account the views of residents.  However, it was necessary to pause the scheme while other options were considered and alternative plans were drawn up in consultation with residents.  The environmental credentials of the completed properties were highlighted and it was noted that the new shop units had nearly been completed.

The Portfolio Holder responded to the points raised during the debate and advised that the ambition was to take decisions in the Autumn to take away the uncertainty for residents.

The recommendations were agreed nem con.

RESOLVED

That (i)    the existing Development Agreement between the Council and ThamesWey for the delivery of the Sheerwater regeneration project be brought to an end;

          (ii)   ThamesWey do not commence any new phases following those currently under construction;

          (iii) ThamesWey be authorised to take such actions, including seeking technical and planning approvals as necessary, to bring its involvement in the project to a cost-effective end in consultation with the Council;

          (iv) authority be delegated to the Chief Executive to give an Executive Undertaking if the Planning Committee approves the changes to the affordable housing as outlined in the report;

          (v)   negotiations between the Council and ThamesWey commence on an unwinding of the previously agreed barter arrangement; and

          (vi) the Special Lettings Policy adopted in 2017 be temporarily suspended until such as time as the wider scheme and Sheerwater Community Charter have been reviewed.

Reporting Person – Louise Strongitharm

Councillor Forster, Portfolio Holder for Key Projects, introduced the report which provided an interim position on the Sheerwater regeneration reflecting the very serious financial position of the Council.  The Portfolio Holder expressed regret that, given the Council’s significant financial challenges, the Council could not afford the future borrowing required to complete the regeneration.  The Executive was informed that the report proposed that the current Development Agreement between the Council and ThamesWey for the delivery of the Sheerwater regeneration project be brought to an end.  It was noted that it was proposed for ThamesWey to complete the three phases – Copper, Red and Yellow – which were currently mid-construction.  The Council would work with housing associations or private developers to complete the Sheerwater regeneration scheme, and/or consider refurbishing and reletting existing homes.  The Executive noted that the report also proposed to rebalance the affordable housing ratio in order to achieve the balanced community ambition of the planning consent.  The Portfolio Holder highlighted that the Council wrote to residents ahead of the Executive meeting in order to explain the situation.  The detrimental effect of the regeneration scheme on Housing Revenue Account (HRA) rental income was raised.

The Executive was sorry that the Council was not in a position to complete the regeneration itself and recognised the ongoing disruption, concern and uncertainty faced by Sheerwater residents.  It was confirmed that the Council remained committed to delivering a regenerated Sheerwater and would be seeking the views of the local community on alternative options.  A report on the future delivery of the wider Regeneration Scheme would be received by the Executive and Council in the Autumn.

REcommended to Council

That  (i)    the existing Development Agreement between the Council and ThamesWey for the delivery of the Sheerwater regeneration project be brought to an end;

          (ii)   ThamesWey do not commence any new phases following those currently under construction;

          (iii)  ThamesWey be authorised to take such actions, including seeking technical and planning approvals as necessary, to bring its involvement in the project to a cost-effective end in consultation with the Council;

          (iv)  authority be delegated to the Chief Executive to give an Executive Undertaking if the Planning Committee approves the changes to the affordable housing as outlined in the report;

          (v)   negotiations between the Council and ThamesWey commence on an unwinding of the previously agreed barter arrangement; and

          (vi)  the Special Lettings Policy adopted in 2017 be temporarily suspended until such as time as the wider scheme and Sheerwater Community Charter have been reviewed.

Reason:   To enable further work to progress that will deliver a sustainable delivery option for the Sheerwater Regeneration project whilst reducing financial risks and exposure to the Council.