Agenda item

This report provides an update on Hawkwood Road, which is a priority project for the Boscombe Towns Fund. In February 2025 Council, resolved to approve the funding strategy for a mixed-use residential-led scheme with a clinical facility in collaboration with the NHS (Option 1).

The Cabinet recommendation to Council included an obligation to have a contract in place with the NHS prior to award of the build works contract for the main construction. Despite a Memorandum of Understanding between the NHS and BCP Council being signed in December 2024 and best endeavours, a final contract has not been entered into with the NHS. To maintain delivery, this report seeks authority to proceed to award the build contract for the main construction to ensure that the grant milestones for the Towns Fund programme and Homes England are satisfied and thereby safeguard the total grant of £17.3m.

This will allow for continued discussions with the NHS and ensure that the significant social and physical regeneration to the ward of Boscombe West and the local need is not lost.

There is a continued commitment to have a health provision at Hawkwood Road, but in the event the NHS cannot proceed, this report seeks authority to market the property as general commercial use as the preferred alternative strategy now due to funding timelines being unachievable for a new residential scheme which would require planning. The 100% residential scheme (Option 2 in the previous Cabinet report) would require a new design and planning application and tender, which is likely to result in higher pricing and therefore is not deliverable within the immediate need to start on site in 2026/2027 and deliver by 2028/2029.

[PLEASE NOTE: Should Cabinet wish to discuss the detail of the confidential appendices at Appendix 1 and 2 the meeting will be required to move into Confidential (Exempt) Session].

The Portfolio Holder for Housing and Regulatory Services presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'F' to these Minutes in the Minute Book.

Cabinet was advised that the report provided an update on Hawkwood Road, which was a priority project for the Boscombe Towns Fund, and that in February 2025 Council, resolved to approve the funding strategy for a mixed-use residential-led scheme with a clinical facility in collaboration with the NHS (Option 1).

Cabinet was informed that the Cabinet recommendation to Council included an obligation to have a contract in place with the NHS prior to award of the build works contract for the main construction, and that despite a Memorandum of Understanding between the NHS and BCP Council being signed in December 2024 and best endeavours, a final contract had not been entered into with the NHS.

In relation to this Cabinet was advised that to maintain delivery, this report sought authority to proceed to award the build contract for the main construction to ensure that the grant milestones for the Towns Fund programme and Homes England are satisfied and thereby safeguard the total grant of £17.3m.

Cabinet was informed that this will allow for continued discussions with the NHS and ensure that the significant social and physical regeneration to the ward of Boscombe West and the local need is not lost.

Further to this Cabinet was informed that there was a continued commitment to have a health provision at Hawkwood Road, but in the event the NHS cannot proceed, that the report sought authority to market the property as general commercial use as the preferred alternative strategy now due to funding timelines being unachievable for a new residential scheme which would require planning.

Cabinet was advised that the 100% residential scheme (Option 2 in the previous Cabinet report) would require a new design and planning application and tender, which is likely to result in higher pricing and therefore is not deliverable within the immediate need to start on site in 2026/2027 and deliver by 2028/2029.

Councillor Patrick Canavan addressed the Cabinet stressing that this was a critical point of the project and urging Cabinet to strengthen the recommendations.

It is RECOMMENDED Cabinet recommends to Council that: -

(a)      Approval to proceed with Option 1 to enter the build contract for 68 homes and commercial floorspace, prior to executing an Agreement to Lease for the ground floor of Block A, to secure the total combined grant of £17.3m and redevelopment of the Hawkwood Road site within the external funder’s timescales;

(b)     Authority to market the non-residential property as general commercial, if the NHS is unable to commit funding for the ground floor of Block A and noting the full residential scheme is no longer deliverable; and

(c)      Authority to proceed to sale or long leasehold of the ground floor commercial asset to ensure a funding strategy is secured to offset the cost of building.

Voting: Unanimous

Portfolio Holder: Housing and Regulatory Services

Reason

To enter the build contract in line with the current active tender and grant funding milestones prior to the lease of the ground floor being signed. This will enable the Council to achieve the funding deadlines set by MHCLG and Homes England and ensures the project remains deliverable.