Agenda item

Fakenham Urban Extension - A148 Roundabout

Summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options considered:

This report requests a capital funding contribution to support with the early delivery of key infrastructure in respect of the Fakenham Urban Extension proposals being developed by Trinity College in Fakenham under outline planning application PO/17/0680. The current proposals for the site include the delivery of up to 1,380 new homes delivered in 2 phases, the first of which would see the construction of 950 homes. It also includes provision of a school site and commercial hub.

 

The contribution being sought is £0.9m, to be used as match funding against 2 successful external funding bids from the Norfolk Business Rates Pool (£0.5m) and the Norfolk Strategic Fund (£0.4m) to give a total scheme contribution of £1.8m.

 

This project proposes to fund the construction of a roundabout on the A148 and associated infrastructure (yet to be agreed), which will act as a catalyst for the commencement of the Urban Expansion of Fakenham. This key element of the site infrastructure will begin to address the lack of viability and de-risk the site for house builders.

 

This contribution towards the scheme will increase the allocation of affordable housing from the currently agreed level of 16.5% to approximately 17.5% although at the present time this is still subject to final agreement.

 

Please note that this proposal is for a total scheme contribution of £1.8m to deliver initial elements of the site infrastructure (including the roundabout on the A148) and not to deliver the full scheme which is estimated to require investment of c£282m, of which total site infrastructure costs are in the region of £25m.

 

The Council could take the decision not to invest the £0.9m match funding but it would then not be possible to draw down the external funding of £0.9m which has been secured.

 

 

Conclusions:

 

 

This combined funding of £1.8m will help to significantly re-risk the site for house builders giving them confidence to develop the site to support the delivery of up to 1,380 new homes on the site delivered in 2 phases the first of which would see the construction of 950 homes. This key element of the site infrastructure will begin to address the lack of viability also unlocks the delivery of the school site and commercial hub providing confidence to home buyers that a new community is being built as well as the homes, this is equally important to house builders as there is no recent track record of estate development of new homes in Fakenham. Strong oversight of the development by the Council will ensure the timely development of the site.

 

 

Recommendations:

 

 

 

 

 

 

 

 

 

 

 

Reasons for

Recommendations:

 

Cabinet are asked to approve;

 

1.            Agree a capital budget of £1.8m to support the enabling infrastructure works and to release of £0.9m match funding from the Delivery Plan Reserve as the Council’s match funding element, with the balance of the funding to be provided externally through the Norfolk Business Rates Pool (£0.5m) and the Norfolk Strategic Fund (£0.4m).

 

To support the viability and early delivery of housing through the Fakenham Urban Extension.

 

Cabinet Member(s)

Cllr Richard Kershaw and Cllr John Toye

Ward(s) affected

Lancaster North and Lancaster South

Contact Officer, telephone number and email:

Duncan Ellis (Director for Resources), 01263 526330, Duncan.ellis@north-norfolk.gov.uk

 

 

Decision:

DECISION

RESOLVED:

 

To agree a capital budget of £1.8m to support the enabling infrastructure works and to release of £0.9m match funding from the Delivery Plan Reserve as the Council’s match funding element, with the balance of the funding to be provided externally through the Norfolk Business Rates Pool (£0.5m) and the Norfolk Strategic Fund (£0.4m).

 

Reason for the recommendation:

 

To support the viability and early delivery of housing through the Fakenham Urban Extension.

 

Minutes:

The Chairman invited the Chief Executive to introduce this item. He said thatthe project proposed to fund the construction of a roundabout on the A148 and associated infrastructure (yet to be agreed), which would act as a catalyst for the commencement of the Urban Expansion of Fakenham. He explained that £0.5m had been agreed from the Norfolk Business Rates Pool, to be match funded by NNDC (£0.5m), which gave an initial capital pot of £1m. The second bid submission for a further £0.4m had also now been approved from the Norfolk Strategic Fund and required further match funding from NNDC of £0.4m and would bring the total capital pot, subject to NNDC match funding approval, to £1.8m. Based on the potential capital contribution of £1.8m and the anticipated delivery of the A148 roundabout scheme within the next 18 – 24 months, that the affordable housing contribution rate could increase to around from the current level of 16.5% to 17.5%/18.5% (subject to finalisation and agreement) as it would address any concerns regarding a lack of viability and de-risk the site for house builders.

 

Cllr Cushing welcomed the proposals. He asked whether the delivery of the scheme was dependent on the sale of the land by Trinity College first, in order to develop the infrastructure, or could it be developed separately. The Chief Executive replied that he understood that the land would be sold in tranches and delivered in phases and that the roundabout could therefore be developed separately first.

 

Cllr J Rest said that he welcomed the proposals and the early delivery of the scheme as it showed that the Council was committed to the wider development of the site.

 

It was proposed by Cllr R Kershaw , seconded by Cllr N Lloyd and

 

RESOLVED:

 

To agree a capital budget of £1.8m to support the enabling infrastructure works and to release of £0.9m match funding from the Delivery Plan Reserve as the Council’s match funding element, with the balance of the funding to be provided externally through the Norfolk Business Rates Pool (£0.5m) and the Norfolk Strategic Fund (£0.4m).

 

Reason for the recommendation:

 

To support the viability and early delivery of housing through the Fakenham Urban Extension.

 

Supporting documents: