Agenda item - Bournemouth Development Company LLP Business Plan

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.

RESOLVED that Cabinet: -

(a) Agrees the principle of an extension of the Winter Gardens site "Option Execution Date", with details to be agreed to be delegated to the Chief Operations Officer acting in consultation with the Leader of the Council, or until Cabinet have had the opportunity to review a revised partnership business plan including the site development plan for the revised Winter Gardens scheme.

(b) Instructs officers to explore the available funding options such that a funding strategy can be developed for the Winter Gardens project and be put forward at a future Cabinet meeting;

(c) Notes the timetable for producing a new Partnership Business Plan for BDC and a Cabinet report later this year;

(d) Notes the interdependency with the current work to review Shareholder Governance and that the composition of the BDC Board is under review.

Voting: Unanimous

Portfolio Holders: Leader of the Council

Housing and Regulatory Services

Reason

To contribute to the Council’s Corporate Strategy, specifically helping to revitalise high streets and regenerate key sites to create new opportunities and to provide good quality homes that are accessible, sustainable and affordable for all.

The emerging Local Plan includes an allocation of 400 new homes in the Bournemouth Arc area. This project offers the potential to make a significant contribution to exceed this target.

The Council has reserved the right for Cabinet to approve Site Development Plans (SDP) and further approvals are necessary to vary terms.

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 'E' to these Minutes in the Minute Book.

Cabinet was advised that 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) which was established in 2011 and is currently due to expire in 2031.

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

Cabinet was informed that a Strategy Day was held on 6 December to review and consider options for moving forward with the Winter Gardens site, and that following that meeting, Muse have committed funds to take forward new high-level design and capacity work for the site.

In relation to this Cabinet was advised that 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.

Cabinet was advised that the purpose of this report was 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 Chair of the Overview and Scrutiny Board, Councillor Bartlett addressed the Cabinet advising that at their meeting the previous evening the Board had debated a number of issues relating to the paper in detail, and that the following recommendation had been agreed: -

1. 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.

(Equal decision, Chair used his casting vote)

Members addressed the Cabinet where the following comments were raised: -

· The need to invest in social and affordable housing

· Concern as to whether BDC still offers the council the scope to develop the site

· The building of housing needs to be balanced with the provision of car parking

The Leader advised that it had been an interesting debate at the Overview and Scrutiny Board meeting the previous evening and that there was a lot to consider going forwards including exploring viability as there has been much change over the last 6 years.

In addition, the Leader advised that BDC now have a really strong relationship with Homes England.

Further to this and taking on board the recommendation of the Overview and Scrutiny Board the Leader proposed an amendment to recommendation (a) so that it would read as follows: -

(a) Agrees the principle of an extension of the Winter Gardens site "Option Execution Date", with details to be agreed to be delegated to the Chief Operations Officer acting in consultation with the Leader of the Council, or until Cabinet have had the opportunity to review a revised partnership business plan including the site development plan for the revised Winter Gardens scheme.

This amendment was supported by the seconder and agreed as the substantive recommendation.

Cabinet spoke in support of the recommendations as amended and in relation to this welcomed the revised proposals and the new injection of passion and energy.