Agenda item

Report of Senior Head of Community.

Cabinet lead member:  Councillor Alan Shuttleworth.

(1) That progress within the HEDP delivery programme noted.

(2) Waiver of contract procedure rules approved to enable the appointment of B&R Productions to carry out project management work for the Creative Hub Cluster for reasons set out in paragraph 2.20 of report.

74.1 Cabinet considered the report of the senior head of community providing an up-date on HEDP housing delivery, setting out plans for the development of a creative hub cluster as part of the Driving Devonshire Forward programme and providing an up-date on the Eastbourne Housing Investment Company (EHIC).

74.2 Future affordable housing investment plans had been presented to cabinet in October 2014 with a recommendation to release up to £10.08m of capital programme allocation for new housing.  This was based on a 97 unit programme and £1.40m of secured external funding from the Homes and Communities Agency (HCA).  The report also gave an up-date on how the HEDP had taken the delivery lead for new affordable housing and brought forward a ward focused neighbourhood improvement project; Driving Devonshire Forward (DDF).

74.3 The affordable housing investment delivery was now well advanced with a programme of 99 new homes (this incorporated additional capital funding of £480,000 from the HCA):

·         55 new build homes of which 35 were complete.

·         44 empty home refurbishments of which 24 were complete.

(87 affordable rent, 8 shared ownership and 4 outright sales.)

74.4 The Driving Devonshire Forward (DDF) programme had been running for almost 2 years.  During this time £2.5m of new grants and investment had been secured for the ward and a range of projects underway or completed.  Projects included improvements to Princes Park, new beach huts, improvements to Sea Houses Square and façade improvements to the Elms Buildings on Seaside Road.  In addition, 48 of the 59 completed new homes mentioned above were in Devonshire ward.  Investment in the ward had included the targeted acquisition and refurbishment of a number of properties that were identified as being a priority from a regeneration perspective (51-53 Seaside Road, 67 -69 Seaside Road and 1- 5 Seaside).  Through the council’s new commercial asset holding vehicle, Eastbourne Housing Investment Company (EHIC), 137-139 Seaside Road (the old Cash Converters building) had also been acquired. 

74.5 A feasibility study to look at the how the buildings could be used to help support new businesses in the creative industry sector had recently been completed.  The study suggested that offer across the buildings could incorporate gallery space (67/69 Seaside Road); a café (67/69 Seaside Road), makers space; studios and workshop space (137/139 Seaside Road and 1-5 Seaside); and serviced and supported central office at the Royal Hippodrome.

74.6 Funding of £275,000 had been agreed ‘in principle’ from:

·         Devonshire West Big Local (DWBL) £80,000 (over 2 years)

·         Arts Council £65,000 (over 3 years)

·         Locate East Sussex £100,000 (year 1)

·         East Sussex County Council £30,000 (year 1)

Alongside the already secured Coastal Communities Fund grant, this funding would pay for all capital costs, associated project management and the fit out of the buildings to a high end specification.  Some of the grant would also contribute to the first operating period.  It was anticipated that the project would become self-sustaining through the establishment of a new community interest company (CIC) and be fully self-financing from year 3.  It was envisaged that the CIC will consist of the sponsors board organisations (DWBL, DDF, EBC) and Towner Gallery, University of Brighton, representatives from local business and the community. The hub was expected to launch in August 2016.

74.7 It was recommended that B&R Productions be engaged for 9 months as interim capital project managers to implement the cluster and set up the CIC, for a fee of £85,000.  Cabinet was asked to waive the requirement that 3 quotes be obtained for this work on the grounds that B&R Productions were specialists in implementing creative hubs (e.g. the Creative School in Rye, which was cited as an exemplar model by the Arts Council and ESCC); that other organisations with the appropriate skills in the south east were scarce; and that their fee was in line with the current market rate for specialist skills at an average day rate equivalent of £350.  B&R Productions had to date developed the business case and had secured in principle funding arrangements.  This reputational track record would be important in ensuring that this funding was confirmed.

74.8 The Eastbourne Housing Investment Company (EHIC) was incorporated in May 2015 as an asset holding company, limited by shares issued, and a wholly owned subsidiary of Eastbourne Borough Council.  The company was expected to operate at nil profit, hold property assets, act as landlord, sell property assets and offer advice to other public bodies.  Since incorporation the HEDP team had been working to bring forward a new programme of housing development through EHIC with a focus on commercial opportunities outside of the housing revenue account.

74.9 The first EHIC acquisition, 137-139 Seaside Road, reflected this new focus in providing 12 homes for market rental as well as a commercial retail space and supported the councils strategic corporate objectives for sustainable communities and income generation.  The next proposed two developments were the subject of a separate report in the confidential part of the agenda under exempt information reason 3 - information relating to the financial or business affairs of any particular person (including the authority holding that information).  Delegated approval was given for the acquisition of one property and provision of corresponding loan from the council to EHIC to enable the acquisition to take place.  The proposed acquisition would enable the council to develop a substantial number of new homes (some for sale and some at affordable rents) in line with the council’s corporate plan aims under the theme headings prosperous economy and thriving communities.  Loan proposals would be in accordance with the council’s treasury management policy.  Confidentiality was required pending completion of negotiations with the vendor.

74.10  The EHIC board had asked the HEDP team to look for new business opportunities to extend the development agent services already provided to Lewes District Council.  This had led to the appointment of EBC by Arun District Council to provide support in developing the business case for and in the establishment of a new local housing company.  The commission was for an initial 3 months with a potential follow on phase to help in the establishment of the new company and with the bringing forward of delivery.

74.11 Resolved (key decision): (1) That progress within the HEDP delivery programme be noted.

(2) That a waiver of contract procedure rules be approved to enable the appointment of B&R Productions to carry out project management work for the creative hub cluster for the reasons summarised above and set out in paragraph 2.20 of the report.

(Notes: (1) For decisions in respect of the property acquisition referred to in paragraph 74.9 above see separate confidential minute.)

(2) Councillors Tutt and Shuttleworth both declared personal interests in relation to paragraph 74.9 above.  See minute 68 above.)