Purpose

To enter into all contracts and subsequent
legal agreements necessary to appoint Wates Construction Limited in
relation to Guildford Park Road.

Content

Guildford Borough Council to enter into a
Development Agreement with Wates Construction Ltd in relation to
the redevelopment of the site at Guildford Park Road Car
Park.

Reasons for the decision

1.The Guildford Park Road redevelopment is a
key scheme within the Housing Revenue Account Business Plan that
will deliver up to 248 additional homes in the town centre. 40% of
these will be new Council homes.
2.The decision will support the delivery of the Council’s
Corporate Strategy (2024 – 2034) by providing decent and
affordable homes.
3.The project will see the redevelopment of a brownfield site,
allocated for housing in the Local Plan.
4.The preferred delivery route for the Guildford Park site is
partnership delivery, via a Development Agreement, as set out in
the Strategic Outline Business Case approved by the Executive in
March 2023.
5.Officers have undertaken a compliant procurement exercise and
following evaluation and moderation of the final tender
submissions, identified Wates Construction Limited as the
Council’s Development Partner.
6.Approvals to appoint Wates were obtained from Council in July
2024 as set out above.
7.Officers have been working with Wates since the approvals were
granted to agree and finalise the contract documentation including
some key commercial terms.
8.This work is now complete, and the parties wish to sign the
Development Agreement.

Alternative options considered

1.The alternative option is to not enter into
the Development Agreement with Wates Construction Ltd. This option
is not recommended as it does not align with the July 2024 Council
resolution to appoint Wates.
2.Furthermore, if the Council chose not to enter into the
Development Agreement, project delivery would be delayed until such
time as an alternative option was agreed. The Council has been
working to bring forward this site for development for at least the
last ten years, with a number of previous design iterations, a
historic planning consent and considerable Council resources
expended to date. The proposal to enter into the Development
Agreement will formally cement a commitment to deliver this project
within the next five years and provide much needed new housing on
this site.
3.To maintain the delivery timeline, Wates have undertaken
significant work at risk to develop a new planning application
whilst the parties have been finalising the contract. As stated
elsewhere, Wates are on target to submit the new planning
application this summer. Should the Council choose not to enter
into the Development Agreement it is likely that Wates would seek
to be compensated for their investment in this work.
4.Officers are therefore now seeking to execute the Contract
(Development Agreement) between the parties, in accordance with the
July 2024 Council resolution, under the authority delegated to the
Joint Strategic Director – Economy, Planning and Place.