Agenda item

Bournemouth Development Company LLP (“BDC”) is a joint venture between the Council and Community Solutions for regeneration Bournemouth,  a subsidiary of MUSE Developments Limited (itself a subsidiary of Morgan Sindall Group plc). It was established in 2011 and is currently due to expire in 2031.

In March 2023, Cabinet approved a request to extend the Site Option Execution Date for Winter Gardens to September 2024. This date has passed and a further extension is required in order for BDC to continue working on a new scheme.

A Strategy Day was held on 6 December to review and consider options for moving forward with the Winter Gardens site. Following that meeting, Muse have committed funds to take forward new high-level design and capacity work for the site.  Early indications show potential for a housing-led scheme with circa 500 homes, including a good proportion of affordable homes, along with some street level retail and commercial space.

The purpose of this report is to update Cabinet on progress since the recent BDC Strategy Day, agree the proposed timetable for the new Partnership Business Plan and to update on the priority project, Winter Gardens, including the proposed strategy for bringing forward residential development on the site, which requires approval to extend the Site Option Execution date.

The  Leader of the Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book. Bournemouth Development Company LLP (“BDC”) is a joint venture between the Council and Community Solutions for regeneration Bournemouth, a subsidiary of MUSE Developments Limited (itself a subsidiary of Morgan Sindall Group plc). It was established in 2011 and is currently due to expire in 2031.

In March 2023, Cabinet approved a request to extend the Site Option Execution Date for Winter Gardens to September 2024. This date has passed and a further extension is required in order for BDC to continue working on a new scheme.

A Strategy Day was held on 6 December to review and consider options for moving forward with the Winter Gardens site. Following that meeting, Muse have committed funds to take forward new high-level design and capacity work for the site.  Early indications show potential for a housing-led scheme with circa 500 homes, including a good proportion of affordable homes, along with some street level retail and commercial space. The purpose of the report was to update Cabinet on progress since the recent BDC Strategy Day, to agree the proposed timetable for the new Partnership Business Plan and to update on the priority project, Winter Gardens, including the proposed strategy for bringing forward residential development on the site, which requires approval to extend the Site Option Execution date.

The Winter Gardens site should remain a landmark mixed-use site with car parking and active frontage. The suggestion for the site was for an extensively housing led scheme, and it was suggested by a Board member that this would not be considered as regeneration. The Leader advised that the essential need at present was for housing and that this should be a greater priority than parking provision. Much needed homes could be delivered, and this site would also deliver commercial offerings such as restaurants. In terms of podium parking the issue was viability and this decision would come to full Council for a decision.

The report advised that the development would include a good proportion of affordable homes and clarification on this was sought. The next stage of the process would refine this issue as a pre-planning application was developed. The Leader advised that as much affordable and social housing should be provided as would make the scheme viable.

Concern was raised that the option execution date was proposed to be extended, and it was suggested that the plans should be developed first if the Council was unsure as to whether it wanted this to proceed. The Leader advised that the Council did want this to proceed. In terms of social housing and the funding of the scheme was dependent upon the relationship with homes England. The proposal placed forward would be very important for regeneration in the Town Centre in terms of footfall.

There were a number of risks associated with moving forward. FuturePlaces was of the opinion previously that this was not a viable site to take forward. It was important to have a culture within a Council to drive forward regeneration. Cross-party support to take projects forward was needed. It was suggested that at present there was not enough resource put into regeneration. If the Council wanted to deliver regeneration on the scale that was needed this area, then a number of cultural issues needed to be addressed.

Concerns were raised that there was a lack of ambition to deliver viable regeneration schemes and in order to progress it needed to be acknowledged that the site was only suitable for certain types of development. The Leader advised that the report was coming forward because there was ambition to deliver on this site. The Leader supported the Improvement and Development Directorate and the work which it was progressing.

It was noted that the scheme did not currently exist and was not within the Council’s capital programme. There were a number of loans to BDC and outstanding loans for the purchase of the land for the Winter Garden’s site. The Chair commented that it was important to see what the full business plan of the BDC was.

It was suggested that the O&S Board recommend to Cabinet that a decision to extend the option execution date be deferred until the new BDC business plan had been approved by Cabinet. It was noted that the way BDC was working was different to the way in which was originally envisioned and this needed to be fully reconsidered in terms of brining forward a Business Plan. The viability of the site would need to feed into a BDC business plan, and this would require the amendment to the ‘Option Execution Date’.

A BDC Board Member advised that the change in the structure of the Board was not as effective without senior officer representation. It was further noted that the current partner was not interested in the development of some of the smaller sites. Any site can be developed through BDC and using BDC there was a level of control that BCP could have which would not be available with sites which were in total commercial control. It was noted that all of the schemes previously delivered had been funded slightly differently depending upon the situation and financial conditions at the time.

The Leader advised that they were taking a lead in this area and were making significant changes in the way regeneration was progressing. The Leader advised that they did understand there were issues but that they were working hard to address these.

It was noted that MUSE had requested the extension and without this they would not continue with the work.

Cllr K Salmon and C Weight left during the consideration of this item.

RESOLVED that the O&S Board recommend to Cabinet that a decision to extend the Winter Gardens site ‘Option Execution Date’ is deferred by Cabinet until the new BDC Partnerships Business Plan has been approved by Cabinet.

Voting: 5 in favour, 5 against, 1 abstention (6:5 following the Chair’s casting vote).

Cllrs P Broadhead and L Dedman left following the vote on this item.