Decision details

Further to the report considered by the board on 17 April 2023, the board received an update report from West Midlands Development Capital (WMDC) on the current position regarding £4.386m land remediation grant allocation (alongside matching request from HCA’s Birmingham City Deal Programme) in respect of a contaminated site (former sewage works) with additional exceptional remediation and infrastructure costs to ultimately deliver 298 homes at the location at Shard End.

At the meeting on 17 April 2023, Investment Board agreed for the grant to be further extended and ring-fenced to Birmingham City Council until 31 August 2023, subject to 5 pre-conditions being met.

The board noted that the grant agreement had lapsed and whilst Birmingham City Council had made progress with the developer for a planned start on site before Christmas, there was no written confirmation from the Environment Agency on the proposed further revised remediation strategy and the resultant tax liability and the scheme would be undertaken at Birmingham’s risk.

Gerald Ganaway (WMDC) reported that the Brownfield Land & Property Development Fund was oversubscribed, and the funding allocated to Birmingham for this scheme could be reallocated to other commercial schemes that require grant funding and are in a position to be delivered.

The Director of Commercial and Investment, Ian Martin, advised the board that there was no other WMCA funding Birmingham could apply for as the project did not meet the required intervention rate for housing under existing funds.

The board considered that it was unlikely Birmingham would receive a full review of the site from the Environment Agency within the next 4 weeks and Birmingham should therefore submit a new application (if they wished) for funding given the grant agreement (approved in October 2017) had lapsed.

Resolved that:

Birmingham City Council be advised the grant funding agreement for Yardley Brook, Shard End has expired, and BCC be invited to submit a new (full) application for funding be agreed.