Agenda item

Proposed disposal of Highfield Road Car park for Affordable Housing

Executive Summary

This report sets out a proposal to dispose of the NNDC owned car park at Highfield Road, Fakenham to Flagship Housing for the development of affordable housing.

 

 

Options considered

 

-        Retain site as a car park

-        Exchange site for Fakenham Town Council owned land elsewhere in Fakenham  

 

Consultation(s)

Fakenham Town Council

District Councillors for Lancaster South & North

Portfolio Holder for Housing and Peoples’ Services

Estates and Property Services

 

Recommendations

 

It is recommended that Cabinet:

-       Agree that Highfield Road is surplus to requirements

-       That NNDC enter into an option agreement with Flagship Housing (subject to Planning Permission) for sale of the Highfield Road car park to be developed for affordable housing.

-    That demolition of the existing toilet block on the site is undertaken as soon as is possible

 

Reasons for recommendations

 

The development of the Highfield Car park offers the opportunity to make better use of an under-used car park, to deliver badly needed affordable homes, to generate a capital receipt and to reduce the current revenue liabilities at the site.

 

Background papers

 

None

 

 

Wards affected

Lancaster South

Cabinet member(s)

Cllr Fredericks, Portfolio Holder for Housing and Peoples’ Services

Contact Officer

Nicky Debbage, Housing Strategy & Delivery Manager, nicky.debbage@north-norfolk.gov.uk

 

Links to key documents:

 

Corporate Plan:         

Meeting our Housing Need.

Medium Term Financial Strategy (MTFS)                                

New affordable homes will help the council tackle housing need and potentially reduce the cost of temporary accommodation for homeless households the Council has a duty to accommodate

Council Policies & Strategies

NNDC Housing Strategy 2021-2025

 

 

 

Corporate Governance:

 

Is this a key decision 

 Yes

Has the public interest test been applied

Appendix A is exempt as it contains commercial information that may prejudice future asset sales

Details of any previous decision(s) on this matter

NA

 

Please note that there is an exempt appendix to this item, which will follow shortly

Decision:

Decision

RESOLVED

 

-       To agree that Highfield Road is surplus to requirements

-       That NNDC enter into an option agreement with Flagship Housing (subject to Planning Permission) for sale of the Highfield Road car park to be developed for affordable housing.

-      That demolition of the existing toilet block on the site is undertaken as soon as is possible

 

Reason for the decision:

 

The development of the Highfield Car park offers the opportunity to make better use of an under-used car park, to deliver badly needed affordable homes, to generate a capital receipt and to reduce the current revenue liabilities at the site.

 

Minutes:

The Portfolio Holder for Housing, Cllr W Fredericks, introduced this item. He explained that the report set out a proposal to dispose of the NNDC owned car park at Highfield Road, Fakenham to Flagship Housing for the development of affordable homes. She welcomed the support of local members.

 

Cllr L Vickers, member for Lancaster South, sought reassurance that the affordable homes that would be built would be restricted to people who had a link with Fakenham or the surrounding villages. Cllr Fredericks replied that affordable housing was allocated on the basis of greatest need across the District. She added that there were other housing schemes underway in Fakenham and these included affordable housing, so there would be more homes available than just those on the Highfield Road site.

 

Cllr C Cushing sought further clarification regarding the actual area that was being sold and whether the residential parking to the side of the plot included any spaces for public use. He said it would be helpful for members to have a map of the site.

The Housing Strategy & Delivery Manager confirmed that the area to the left of the car park, to the rear of Church Lane, was excluded from sale.

 

Cllr Cushing how quickly the sale would proceed. Cllr Fredericks replied that the sale process would be very quick but that the development of the site could be held up by nutrient neutrality. The Housing Strategy & Delivery Manager added that the toilet block on the site would be demolished as soon as possible to limit any vandalism and then a legal agreement would be entered into with Flagship Housing based on an option to purchase subject to planning permission. Although nutrient neutrality (NN) could impact on the construction of the housing, it was hoped that the challenges presented by NN were close to being resolved.

 

Cllr Cushing referred to the demolition of the toilet block and whether there was a risk that the sale could proceed but the site would be empty for a considerable length of time. He asked whether the car park would close once the site was sold. The Chairman confirmed that this was the intention but that access for residents’ parking would continue. Cllr Cushing asked for more detail around the reasons for closing the toilets. He said that he wasn’t aware of any anti-social behaviour on the site at all. The Portfolio Holder for Finance, Cllr Shires, replied that once the decision had been taken to dispose of the site, the facilities on there would no longer belong to the Council and there was a requirement to clear the area. Cllr Cushing expressed concern that the site may remain empty for a considerable time and this may cause alarm with residents. He then sought confirmation regarding the price that Flagship was paying. The Housing Strategy & Delivery Manager confirmed that the price offered by Flagship was indicative and the value of the land would be determined by planning permission and the number of units that could be built. She confirmed that, indicatively, £300k was the amount offered but this was ahead of a proper viability study and the number of units was confirmed. She said that the amount offered by Flagship for the land was above the book valuation but acknowledged that there was some way to go before a final valuation was agreed.

 

Cllr L Vickers referred to an email that was sent to members prior to the meeting, making several assertions and she asked whether the Portfolio Holder or the Housing Strategy & Delivery Manager could clarify the situation.

 

The Chairman confirmed that a resident had raised a number of questions and clarified that the site was surplus to requirements and that the toilet was used by transient users such as lorry drivers. He reiterated that the private parking area would remain in place for residents of Church Lane. In conclusion, he said that the development was subject to planning permission. Cllr Vickers thanked him for the explanation and said that it was important that the residents of Fakenham had a clear understanding of the facts.

 

Cllr N Dixon said that it would have been helpful for a plan of the site to have been included with the report, particularly for members who were not familiar with the site. He then referred to the unrestricted site value and said that it seemed to be a very modest figure and sought reassurance that this would not be the final value for disposal of the site. He said that it was important that the Council received the best value that it could for the site. He accepted that due weight should be given to it being developed for affordable housing. The Chairman confirmed that this was a key part of the value. The Housing Strategy & Delivery Manager said that it was a site that was affected by nutrient neutrality and was also quite small. She added that she was confident that the final price would be higher than the market valuation that had been provided.

 

It was proposed by Cllr T Adams, seconded by Cllr W Fredericks and

 

RESOLVED

 

-       To agree that Highfield Road is surplus to requirements

-       That NNDC enter into an option agreement with Flagship Housing (subject to Planning Permission) for sale of the Highfield Road car park to be developed for affordable housing.

-      That demolition of the existing toilet block on the site is undertaken as soon as is possible

 

Reason for the decision:

 

The development of the Highfield Car park offers the opportunity to make better use of an under-used car park, to deliver badly needed affordable homes, to generate a capital receipt and to reduce the current revenue liabilities at the site.

 

Supporting documents: