Purpose

Cabinet Member Report (CMR) seeking approval of the Full Business Case for Carlton Dene.

Decision

Summary of Decision

The Cabinet Member for Regeneration and Renters has approved:

·       The Carlton Dene Full Business Case.

·       Contract award to appoint Lovell Partnership Ltd as the Council’s contractor to deliver the Stage 2 main build construction works for the Carlton Dene Scheme

·       Contract award sum for the Stage 2 main build works up to the maximum value of £40.249m.

·       A £2.251m increase to the expenditure budget allocation for Calton Dene to £59.663m and approves expenditure of the full budget, to progress the scheme to completion and the end of the defects period.

·       Increased funding forecast of AHF on the scheme by £2.251m. This will offset the additional expenditure requirements (see recommendation 2.4).

·       Delegation of authority to the Executive Director of Regeneration, Economy and Planning to approve and enter into other agreements and property documents including but not limited to leases, warranties, substation leases, wayleaves, licences, deeds of easement, asset protection agreements, section 104 agreements, section 185 agreements and any other statutory agreements and utilities agreements in connection with ancillary works required to facilitate the construction works at Carlton Dene.

Reasons for Decision

The Full Business Case (FBC) represents the final business case stage in the Carlton Dene development. The FBC has shown that there is still a strong strategic, economic, commercial, financial and management case for the project to progress to the delivery phase, and a decision is required to proceed to that phase.

The Carlton Dene scheme will deliver an additional 87 affordable homes towards WCC’s target of delivering truly affordable housing with 65 of the homes classified as ‘extra care’ and the remaining 22 homes delivered as social rented tenure.