The Cabinet considered the report of the Director of Built Environment on the award of Regional Growth Funding for the Employment and Housing: Anfield and Bedford/Queens programme; and proposals for the disposal of the Bedford/Queens Phase 3, the former St. Winefrides school, and the Kings Centre sites to Keepmoat Ltd. for development and refurbishment.
This was a Key Decision and was included in the Council’s Forward Plan of Key Decisions.
Decisions Made:
1. the grant offer of £1,468,715 made under the Regional Growth Fund Round 2 be accepted;
2. approval be given to the disposal of the Bedford/Queens Phase 3, the former St. Winefrides school and the Kings Centre to Keepmoat Homes Ltd. for development and refurbishment as new housing for sale and rent;
3. the Director of Built Environment, Head of Corporate Finance and ICT, and the Head of Corporate Legal Services be authorised to agree the final terms under which the grant is accepted, and the terms under which the sites will be disposed to Keepmoat Ltd;
4. approval be given to the Council entering into a tripartite agreement with both Keepmoat Ltd. and Liverpool City Council to indemnify the Council if either/or both Keepmoat Ltd. and Liverpool City Council fail to honour their obligations contained within the Regional Grant Fund (RGF) Agreement and to vary the existing Overarching Development Agreement with Keepmoat Ltd. to include the obligations contained within the RGF Agreement.
Reasons for Decision:
The Regional Growth Fund grant would provide the resources necessary to complete the Housing Market Renewal scheme in the Bedford/Queens area of Bootle, and to create, or preserve 122 jobs in North Liverpool and South Sefton.
Alternative Options Considered and Rejected:
With exception of the former St. Winefrides school, the sites in question were Compulsorily Purchased by the Council in order to redevelop with new housing and to use this land for any other purpose could result in legal challenge.
Keepmoat Limited. is the Council’s appointed ‘lead developer’ for the Housing Market Renewal (HMR) programme in the Bedford/Queens area of Bootle. As such,the Council had previously entered into an Overarching Development Agreement with Keepmoat Limited which gave them ‘first call’ on HMR development opportunities in the Bedford/Queens area, subject to performance and viability.
However, it would be possible as matters stand to sell the former St. Winefrides School site on the open market. Keepmoat had carried out an initial development appraisal of this site and currently the cost of development with housing for sale considerably exceeded its value, which suggested that the site was not viable without grant. On the basis it was likely that if the Council were to sell the site on the open market it would remain undeveloped for some considerable time. Keepmoat are one of the joint applicants of the Regional Growth Fund bid and therefore access to it is dependent upon them being the developer.