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RESOLVED:
 

1.   
That Cabinet approves proceeding with the tender to
secure development agreements for four identified council-owned
sites to deliver housing, including units allocated to Adult Social
Care for people with mental health needs, on a basis that fully
funds the council’s capital expenditure.
 

2.   
That Cabinet notes the four sites are as
follows: 

a)   
Chalkmead, Deans Road, Merstham RH1
3HE

b)   
Keswick, Eastwick Park Avenue, Great Bookham KT23
3ND

c)   
Longfield, Killicks, Cranleigh GU6 7BB
  

d)   
Meadowside, Knowle Park Avenue, Staines TW18 1AN

3.   
That Cabinet approves delegated responsibility to
agree the terms of the land transaction(s) (freehold or leasehold
disposals), corresponding development agreement and associated
legal documentation to the Executive Director for Environment,
Property & Growth in consultation with Cabinet Members for
Adult Social Care and Property, Infrastructure and Waste. The final
agreements must ensure there is an appropriate return for the use
of the council’s land taking into account the delivery of
units allocated to ASC for people with mental
health needs, plus that the council’s capital expenditure in
enabling development of the sites is fully reimbursed.
 

4.   
Confirms that work on developing the four sites
should be paused with a report brought back to Cabinet for decision on next steps if the
outcome of bids received means that the council’s capital
expenditure in enabling development of the sites is not fully
funded or if it is considered that the development agreements do
not provide an appropriate return in line with the value of the
land.
 
5.   
Notes
that a separate procurement process will be conducted to identify
onsite support and care provision (for the units allocated to ASC)
to avoid long-term support and care provision being tied into the
development of the sites.
 
Reasons for Decisions:
 

·        
Housing plays a fundamental part in people’s
wellbeing, their employment, health and relationships. Housing conditions,
accessibility and mix are key determinants of a thriving and
sustainable workforce and economy. Housing also links strongly to
poverty, including fuel poverty, the cost of living as well as
climate change and net zero ambitions. There are strong economic,
health and community drivers for seeking to improve housing,
accommodation and homes in Surrey.

·        
In March 2023 Cabinet adopted the ‘Housing,
Homes and Accommodation Strategy for Surrey’ (Housing
Strategy) and encouraged others to do likewise in a spirit of
collective endeavour to address the evidenced housing crisis in
Surrey.

·        
Housing with care and support (also known as
specialist housing) enables people with mental health needs to
access the right health and social care at the right time, in the
right place, with appropriate housing for residents that helps them
to remain independent and ensures ‘no one is left
behind’.

·        
A report was presented to Cabinet in November 2021
setting out ASC’s ‘Right Homes, Right Support Strategy
for people with mental health needs’. A second paper setting
out the council’s delivery strategy for modernising and
transforming accommodation with support for people with mental
health needs was approved by Cabinet in April 2023. This included
Corporate Feasibility funding allocation of £2.1m to
undertake feasibility on five council-owned sites.

·        
Feasibility studies were completed in November 2023,
confirming the sites were suitable for development against defined
criteria, however it was anticipated that unfunded borrowing would
be required for the council to directly deliver the developments.
Therefore, this option is not recommended.

·        
As the council is unable to allocate unfunded
capital borrowing to enable the proposed development to proceed,
officers have engaged the housing market including registered
providers of social housing, developers and funders to ascertain
the appetite for market-led development. The findings are outlined
in this report.

·        
In February 2022, Cabinet agreed to close the
council's in-house homes for Older People and “explore
opportunities for developing the sites for alternative adult social
care services”. This included the former Keswick,
Chalkmead, Meadowside and Heathside
care homes. It was also agreed that “the alternative use of
any site will be prioritised in the context of Adult Social
Care’s Accommodation with Care & Support Strategy”.
The recommendations in this report support this.

(The decisions on this item can be call-in by the
Adults and Health Select Committee)