Issue - meetings

BCP: New Approach to Regeneration

Meeting: 29/09/2021 - Cabinet (Item 55)

55 Accelerating regeneration and investment in the BCP area pdf icon PDF 845 KB

This report sets out how the Council can bring forward an innovative approach to the way we manage regeneration and development.  Change is needed to bridge the gap between the massive opportunity presented by the sites the Council owns or influences and the Council’s delivery capacity.  This report describes how by forming a Council-Owned Urban Regeneration Company (URC) the Council will enable investment to be delivered at a greater pace and scale without compromising the quality and sustainability of development.  The report also considers the future role of the Bournemouth Development Company (BDC) and the plans for delivering the Bournemouth Town Deal for Boscombe.  It covers the following issues:

·       The formation and funding of a URC to provide the Council with the development management expertise and capacity it will need to develop key sites, at pace.

·       The creation of a Commissioning Plan and Delivery Team to provide oversight of all regeneration and development activity whether undertaken by the URC, by BDC or the Boscombe Towns Fund Board.

·       Changes to the governance arrangements within BDC which flow from a review undertaken by consultants and following the introduction of Muse Developments as BDC’s new Development Manager.

·       Decisions about BDC’s Winter Gardens scheme that will enable planning permission to be secured allowing minor-material amendments to be expedited and work to proceed in preparing the site for development including the demolition of properties on Exeter Road, utility diversions and power supply upgrading works.

·       Decisions about the Heads of Terms, project priorities and budgets needed to take the Bournemouth Town Deal proposals for Boscombe Town Centre forward to detailed business case development and project implementation.

 

Additional documents:

Decision:

RESOLVED that: -

(a)      Cabinet approve the proposals made in the report and delegate authority to the Chief Executive to approve the necessary legal documents; and

(b)      Cabinet note that the URC business plan will be brought to Cabinet for approval no later than October 2021;

RECOMMENDED that: -

(c)      Cabinet recommends that Council approve £3.404m of additional resources to support the regeneration programme in 2021/22.

RESOLVED that: -

(d)      Cabinet notes the £3.470m of additional resources requested to support the regeneration programme in 2022/23 and £1.331m per annum from 2023/24 onwards;

(e)      Cabinet notes that the additional resources for 2022/23 onwards will formally be recommended to Council as part of the 2022/23 budget and Medium-Term Financial Plan Update report in February 2022;

(f)       Acknowledge the novation of the development management services agreements for the Bournemouth Development Company (BDC) to Muse Developments Limited as described in the report and approve the Council’s entry into a deed of variation to implement corresponding updates to the Members’ Agreement.

(g)      Approve work to be done by BDC to secure the outline planning consent agreed in 2018 including the completion of building demolitions on the Exeter Road site shown at appendix 1 which are derelict, incurring business rates obligations and attracting anti-social behaviour problems and attendant health and safety risks and the commencement of utility diversion and power supply upgrading works.

Note that, on 3 March 2021, the Council received the Heads of Terms of an offer to provide a ‘Town Deal’ for Boscombe Town Centre which was accepted by the Town Deal Board on 24 March 2021 and confirmed with a conditional allocation of project funding on 4th May.

(h)      Approve the Town Deal projects agreed with the MHCLG and provide the necessary support to develop these in sufficient detail so that Business Cases can be completed for consideration by the MHCLG by May 2022.

Voting: Unanimous

Portfolio Holder: Regeneration, Economy and Strategic Planning

Reasons

URC proposal

An Urban Regeneration Company has been formed to ensure BCP has the capacity, expertise, and resources to drive investment in regeneration and unlock value from major council owned sites; it will also enable BCP to deliver new homes and create well designed, local neighbourhoods.

Bournemouth Development Company (BDC)

The proposed changes to the governance of BDC flow from an independent review, commissioned by the Council’s Chief Executive. Their aim is to ensure greater clarity of roles, transparency, and accountability in the relationship between the Council and the company.

Bournemouth Towns Fund

In May 2021, the MHCLG confirmed the conditional award of £21.7m to support the regeneration of Boscombe Town Centre. The Council is accountable for these funds and will need to ensure that they are properly invested to deliver the intended outcomes by March 2026. Cabinet approval of the projects agreed with the MHCLG is needed to enable business cases to be developed for each project.

 

Minutes:

The Portfolio Holder for Regeneration, Economy and Strategic Planning presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report sets out how the Council can bring forward an innovative approach to the way we manage regeneration and development, and that change was needed to bridge the gap between the massive opportunity presented by the sites the Council owns or influences and the Council’s delivery capacity. 

In relation to this Cabinet was informed that this report describes how by forming a Council-Owned Urban Regeneration Company (URC) the Council will enable investment to be delivered at a greater pace and scale without compromising the quality and sustainability of development, and that the report also considers the future role of the Bournemouth Development Company (BDC) and the plans for delivering the Bournemouth Town Deal for Boscombe. 

Cabinet was further advised that the report covered the following issues:

·       The formation and funding of a URC to provide the Council with the development management expertise and capacity it will need to develop key sites, at pace.

·       The creation of a Commissioning Plan and Delivery Team to provide oversight of all regeneration and development activity whether undertaken by the URC, by BDC or the Boscombe Towns Fund Board.

·       Changes to the governance arrangements within BDC which flow from a review undertaken by consultants and following the introduction of Muse Developments as BDC’s new Development Manager.

·       Decisions about BDC’s Winter Gardens scheme that will enable planning permission to be secured allowing minor-material amendments to be expedited and work to proceed in preparing the site for development including the demolition of properties on Exeter Road, utility diversions and power supply upgrading works.

·       Decisions about the Heads of Terms, project priorities and budgets needed to take the Bournemouth Town Deal proposals for Boscombe Town Centre forward to detailed business case development and project implementation.

The Vice Chair of the Overview and Scrutiny Board addressed the Cabinet advising that at their recent meeting the Board had comprehensively discussed the report and raised concerns in respect of the bringing together of all these matters in one report and of the governance arrangements.

In relation to this the Portfolio Holder detailed the two levels of governance and highlighted the skilled nature of those involved.

RESOLVED that: -

(a)       Cabinet approve the proposals made in the report and delegate authority to the Chief Executive to approve the necessary legal documents; and

(b)       Cabinet note that the URC business plan will be brought to Cabinet for approval no later than October 2021;

RECOMMENDED that: -

(c)       Cabinet recommends that Council approve £3.404m of additional resources to support the regeneration programme in 2021/22.

RESOLVED that: -

(d)       Cabinet notes the £3.470m of additional resources requested to support the regeneration programme in 2022/23 and £1.331m per annum from 2023/24 onwards;

(e)       Cabinet notes that the additional resources for 2022/23 onwards will  ...  view the full minutes text for item 55


Meeting: 20/09/2021 - Overview and Scrutiny Board (Item 79)

79 Scrutiny of Regeneration Related Cabinet Reports pdf icon PDF 845 KB

To consider the following Regeneration related reports scheduled for Cabinet consideration on 29 September 2021:

 

·       BCP: New Approach to Regeneration

·       High Streets and District Centres Strategy

·       Spending Priorities for Strategic CIL

 

The O&S Board is asked to scrutinise the reports and make recommendations to Cabinet as appropriate.

 

Cabinet member invited to attend for this item: Councillor Broadhead, Portfolio Holder for Regeneration, Economy and Strategic Planning. Also invited are Lead Members for Regeneration and Highstreets Councillors Dunlop, Baron, Kelly and Brooks.

 

The Cabinet report for this item is included with the agenda for consideration by the Overview and Scrutiny Board.

Additional documents:

Minutes:

 

BCP: New Approach to Regeneration - The Portfolio Holder for Regeneration, Economy and Strategic Planning presented a report, a copy of which had been circulated to each member of the Board and a copy of which appears as Appendix 'C' to these minutes in the Minute Book. The Portfolio Holder and officers addressed a number of points raised by the Board including:

 

·     A concern was raised regarding the implications of not achieving transformation savings on the commitments now in place. Savings on regeneration had been effectively halved. There were a number of different ways to address the sites outlined. It was not expected that a majority would be delivered directly. Preparation would be required, and the financial envelope was considered in a separate budget monitoring paper.

·     In response to a question the Board was advised that there were very low borrowing rates at present and that this represented an opportunity for investment. It was noted that the first quarter budget monitoring report for 2021/22 set out two levels, should the scheme, at any point in future, need to be rebooted.

·     A Councillor commented that the scheme seemed ambitious, but debt ridden and there was a 150 percent jump in budgeted spend. It was noted that there was a projected £12.6m overspend for the year and transformation savings had already been halved. It was suggested that it may be a good idea to defer agreeing to additional spending until after there had been an opportunity to consider the medium-term financial plan.

 

The meeting adjourned to address technical issues from 4:28pm to 4:36pm.

 

·     The Portfolio Holder advised that the numbers were small in the context of what was trying to be achieved for the area. It needed to be taken in context of the budget for development over the next five years. The recommendation for approval of resources for 2022/23 would form part of the budget proposals and Council would not sign off this matter until December. The Development Lead advised that there was demand for development and investment in studies at the beginning, was needed to ensure that the right options were progressed.

·     A Councillor questioned how the Urban Regeneration Company would operate with inhouse functions and how they would work together to deliver projects. It was noted that there was a formal arrangement between the Council and the company as laid out in the report. There would be a full business plan for the urban regeneration company which would be coming forward in the next month. There would be a commissioning plan and contract in place. Expertise from the Urban Regeneration Team was needed to pull everything together. The Lead Officer advised that the URC Business Plan and the Council’s Commissioning Plan would be mirror documents of each other. These would ensure key value for money and other success criteria. There would be regular reporting in to ensure governance was sound at appropriate gateway stages. It would provide a dual role of both enabling and monitoring.

·     A Councillor commented that  ...  view the full minutes text for item 79