Purpose

Approval was given to a procurement strategy
for the delivery of the Friar Park Urban Village scheme utilising
the Homes England DPS Framework in March 2023 (Cabinet Minute 35/23
refers), and delegated authority was given to the Cabinet Member
for Regeneration and WMCA and the Director of Regeneration and
Growth, to progress the preferred route for developer selection.
This included the preparation of appropriate documentation and
defined parameters against which the scheme will be assessed.

The Joint Venture partnership between WMCA and SMBC has progressed
this work, with agents (Cushman and Wakefield) appointed to
undertake this work on behalf of the Joint Venture. Associated with
this legal advisors (Browne Jacobson) were also jointly appointed
to ensure the proposed approach utilised by the Joint Venture would
be compliant with procurement, subsidy control and best value
considerations, especially given the confirmation of the Levelling
Up Partnership funding in September 2023.

The approach to the disposal and ultimate development of the site
anticipates the progression of the scheme on a gap-funding style
basis, with the details of the funding and associated requirements
being progressed through a Development Agreement. The funding
secured by WMCA and SMBC to support the scheme will be utilised to
address the gap identified.

Content

1.1 That approval be given to the proposed
structure of the disposal of the Friar Park site on the following
basis:

• The preferred developer is granted licence to undertake
the
remediation works with all liabilities/responsibilities for the
site
transferring at the point the licence is granted.

• The LUP/WMCA Funding is utilised to pay for the remediation
works
being undertaken, based on a market price being established in
the
tender process, and drawn down on terms agreed in the
Development/Funding Agreement.

• Developer seeks detailed planning consent for the housing
scheme
whilst the remediation works are being progressed.

• Upon completion of the remediation works, either:

o the developer purchases the freehold of the site based on
the
remediated site value;
OR

o the developer is granted a licence/lease to build out the
scheme, for which a premium is paid, with the freehold
transfer
taking place directly to 3rd party purchasers, subject to
overage
arrangements upon practical completion of each phase.

1.2 That the procurement timescales are acknowledged.

1.3 That subject to approval of 1.1 above, the Expression of
Interest is released, which will start the overall procurement
process.