Purpose

Purpose:
The purpose of this decision is to authorise the delegated officer to approve and implement delegations set out in Cabinet Decision E3723:
In relation to Bath Western Riverside (BWR) Phase 2:
enter agreements between B&NES Council and Berkeley Homes for the land swap agreement with the purchase of 92 Market Homes on Berkeley land for Council affordable homes to be held and managed by B&NES Homes in return for the Council transferring its part of the Site to Berkeley.
(and)
enter any additional fit out works agreements with Berkeley Homes
(and)
enter any Deed of Variation to the existing Neighbourly Deed with Berkeley Homes in relation to shared infrastructure
This decision builds on the authorities granted under Decision E3168, which approved land acquisition, funding agreements, enabling infrastructure and a land swap, all necessary to unlock the site. The 2024 ODD approved the Council’s entry into a series of contractual arrangements, including the Remediation and Enabling Works Agreement (REWA). Decision E3723 approved delivery of homes on the Council's land at Bath Riverside for a mix of affordable homes to be owned and managed by the Council with a series of delegations to contract delivery arrangements with Berkeley Homes.
The BWR Phase 2 site is owned by the Council and St. William (Berkeley Group) in two separate parcels and the 2022 Land Swap Agreement, and Neighbourly Deed collectively enabled a co-ordinated approach to bring forward the site. This collaboration has since been strengthened through joint remediation and enabling works delivered under an extension to the Homes England HIF agreement and the REWA in 2025, ensuring a single, consistent remediation strategy.
To progress the scheme to delivery of the affordable housing terms are agreed to exchange the contracts set out in the Contract Award Notice published 5th August 2026 set out below:
The total "land swap" transaction will be contracted for in phases as follows:

Decision

Officer Decision:
To enter agreements between B&NES Council and Berkeley Homes for
a land swap agreement with the purchase of 92 Market Homes on Berkeley land for Council affordable homes to be held and managed by B&NES Homes
the Council transferring its part of the Site to Berkeley Homes
Berkeley Homes constructing 132 affordable Homes (linear Blocks) through a Development Agreement on the land transferred
To enter any additional fit out works agreements with Berkeley Homes
To vary the option to acquire Berkeley Homes l79 units in Block B later phase to facilitate early delivery of affordable homes
To enter any Deed of Variation to the existing Neighbourly Deed with Berkeley Homes in relation to shared infrastructure (if required).
Alternative Options Considered:
An extensive range of options for delivery was considered, each with differing characteristics across a range of categories including level of control, transference of risk, maximisation of value etc. These were considered in detail in an independent report, and the recommendation was to proceed with Berkeley Homes as the preferred partner.
The decision enables the Council to achieve their key objectives, support the overall delivery of the scheme, comply with all existing funding agreements relating to the site, and meet all statutory obligations, including those related to best consideration, procurement, and subsidy control.

Alternative options considered

Primary Agreement:
1. Land Swap Agreement - Subject to achieving a satisfactory planning permission and Berkeley (at its own volition) building to a "golden brick" level on the part of the Site known as "Block G" (currently owned by Berkeley), Berkeley will transfer the freehold interest in Block G to the Council in return for the Council transferring its part of the Site to Berkeley. There will be additional balancing payments paid by each party to ensure the agreed price is received for each party's land.

2. Block G - Following completion of the land swap, Berkeley will obtain a permissive licence from the Council to continue to occupy Block G for the purposes of completing the construction of Block G (at its own volition) in accordance with the relevant planning permission, being the planning permission with reference 22/03224/EFUL for the construction of 92 dwellings, being the "Block G Planning Permission"). Note that the Council do not consider that this arrangement meets the definition of a public works contract.

3. Fit out works - Within the Land Swap Agreement, the Council will also have an option (but not an obligation) to call for Berkeley to enter a contract to upgrade the finish for Block G at an additional cost. The Council considers that if it chooses to enter into such an agreement in the future, the value of this contract will be below the threshold for a public works contract under the Procurement Act 2023.
Ancillary Agreement/s
4. Conditional Purchase Agreement for Linear Blocks - subject to completing the Land Swap Agreement, the site for the Linear Blocks will then be owned by Berkeley. Subject to funding and therefore at its option, the Council may purchase c140 dwellings known as the "Linear Blocks" from Berkeley to golden brick should Berkeley choose to build them. The transfer will be conditional on the Council obtaining the relevant funding and Berkeley reaching golden brick.

5. Conditional Development Agreement for Linear Blocks - the parties will also be entering into a conditional development agreement to deal with the development of the Linear Blocks from golden brick level to practical completion. Due to ownership and access limitations only Berkely could complete these development works.
This forms part of the Council’s long-term ambition to regenerate this brownfield site and deliver 30% affordable housing across BWR Phase?2.