Agenda item

The board considered a report from the Director of Housing and Regeneration that sought grant investment from the WMCA’s Brownfield Housing Fund to support the redevelopment of Erdington Baths, a significant regeneration project in Birmingham. The project would provide 1,174m2 of commercial floorspace that was needed for SMEs and deliver a total of 149 FTE jobs.

              It was noted that the project had gone through the key decision making and appraisal stages of the WMCA’s Single Commissioning Framework and Birmingham City Council is fully supportive of the application; BCC are leading on an application for the Levelling Up Fund, expected in Spring 2022.

             WMCA grant funding would be provided on the basis of the ‘funder last resort’; funding would not be provided if the Levelling Up bid was unsuccessful.

            Resolved:

            1. That WMCA grant investment from the Brownfield Housing Fund up to the amount specified in the report, to support the redevelopment of Erdington Baths, an exemplar regeneration project in Birmingham that will unlock 1,172m2 of commercial floorspace and a total of 149 FTE jobs (80 operational, 69 construction) be approved;

            2. The project has gone through the decision making and appraisal stages of the WMCA’s Single Commissioning Framework in its journey to Investment Board and is fully compliant with the requirements set by Government for the Brownfield Housing Fund administered by the WMCA be noted;

            3. The investment being recommended for approval represents an absolute maximum and it is expected this figure will be reduced significantly after the next round of the Levelling Up funding is made available (the current allocation represents a maximum scenario for SCF grant funding) be noted;

            4. Birmingham City Council is fully supportive of this application and are a leading an upcoming application, expected in Spring 2022 on this project for Levelling Up funding to enable the full delivery of the redevelopment proposals be noted;

            5.The grant funding ask from the WMCA is on the basis of ‘funder of last resort’ based on all third party grant funding avenues being exhausted and in order for the scheme to progress to full delivery the applicant will have to secure significant further public sector grant funding through the next round of the Levelling Up which is expected to take place in Spring 2022 be noted;

            6. That if no Levelling Up monies or suitable alternative grant funding sources are made available to enable the redevelopment by the end of 2023, all WMCA grant funding will be withdrawn be noted;

 7. This approval should be seen in the context that the WMCA continues to exceed all the targets and milestones set for its devolved housing and land funds including the £100m Land Fund, £24m National Competitive Fund and the £84m Brownfield Housing Fund be noted and;

8. This approval should be seen in the context that the WMCA is currently in negotiations with Government on broader funding support to complement the existing devolved housing and land funds so we are better able to support homes, jobs, commercial floorspace and the wider regeneration proposals such as this be noted.