Agenda item

This item was deferred.

The board considered a report of the interim Executive Director of Housing, Property and Regeneration that sought approval for WMCA investment for the acquisition and subsequent costs of holding 8 titles at the ‘location’, whilst planning is obtained, and a development partner is secured with the objective of delivering a mixed-use scheme which would provide 118 new homes on The Gateway site in Stratford-Upon-Avon.

It was noted that Investment Board had approved the Stratford Gateway Collaboration Agreement at its meeting on 12 February 2024.

Councillor George Cowcher, David Buckland and Tony Perks from Stratford-on-Avon District Council were in attendance to support the proposals set out in the report.

The Development Manager, Acquisitions and Disposals, Anna Jones, reported that further to the report considered at the last meeting, she had been advised of the outcome of the building survey for the grade 2 listed buildings which, had indicated there were no major concerns; only remedial works were required. Anna confirmed the intervention rate was higher than the scheme value which proved market failure and that the WMCA would get back the land acquisition costs from the sale of the site.

Councillor Grinsell (Solihull) reported that she expected more information to be included in the report for the board to take a decision. She stated the results from the Structural Engineer’s report for the grade 2 listed buildings had not been provided and the scheme had not been granted planning permission noting there was no guarantee planning permission would be obtained and enquired why planning permission had not already been granted.

Martin Yardley, Housing, Property & Regeneration Consultant, reported that the Supplementary Planning Document (SPD) produced by Stratford-on-Avon District Council outlines their vision for the area and indicates it is suitable for development.

The Development Manager, Acquisitions and Disposals, Anna Jones, reported that the WMCA is under a time pressure from the landowner to acquire the site (8 titles) which are at risk of being broken-up and sold separately. 

The Chair reported that he is was unhappy planning permission had not been obtained and the board has not seen the survey results on the condition of the grade 2 listed buildings which he considered was high risk.

Councillor Cowcher (Stratford-on-Avon District Council) reported that the Supplementary Planning Document had been through Cabinet and full council; the site was significant for the regeneration of the town and wider benefits for the region. He reported that the council was not in full control of the site as they did not own it.

Councillor Dormer (Non-Constituent Authorities) considered that a pre-planning application could have been obtained and questioned the valuation of the site.

Councillor Burden (City of Wolverhampton Council) considered that planning approval was likely to be granted but understood the concerns of members. He questioned the time pressure for acquiring the site and the high value intervention rate for the homes.

The Development Manager, Acquisitions and Disposals, Anna Jones, reported that the net invention rate reduces significantly when the site is sold and the WMCA recoups a huge portion of its funds.

Martin Yardley advised that the report outlined a worst-case scenario of the WMCA holding the site for 5 years and that if the site was sold much quicker the values would reduce.

The interim Executive Director of Housing, Property and Regeneration, John Godfrey, confirmed the net intervention per unit (set out in the report) when the site was sold, was acceptable for the Brownfield Infrastructure and Land Fund (BILF).

Councillor Hughes (Sandwell) considered the report submitted should detail all the risks associated with the scheme, noting decisions have been taken in the past without all the risks being presented which have subsequently been questioned.

The Development Manager, Acquisitions and Disposals, Anna Jones, reported that a risk and investment appraisal had been undertaken on the scheme by the WMCA’s Programme Assurance and Appraisal Team which was appended to the report. She added that it was always a risk that planning consent would not be given but in a worse-case scenario the WMCA could sell the site on the open market.

Councillor Grinsell (Solihull) reported that she was still not comfortable in approving the report and that she would like to see timescales included in the report in order to be aware of any critical dates. She noted the absence of several board members and proposed that a decision on the report be deferred.

The Chair sought member approval to the deferment of the report which was agreed.

The Chair noted the uncertainty on the planning approval, the need to have knowledge of the building survey and/or the associated cost implications for the WMCA and for the board to be provided with a higher level of assurance with regards to residual value and intervention rate.

The Chair asked that the report be re-submitted once planning approval had been obtained from Stratford-on-Avon District Council and that if it the scheme is time critical it be discussed with officers.

Resolved: The report be deferred to a future meeting.