Cabinet, on 11 March 2020, resolved to:

1.    Delegate authority to the Executive Director Development to sign off the Pre-Planning Viability Condition and all other Stage One requirements of the Development Agreement detailed in this report, and confirm the project can move past Gateway One and into Stage Two (detailed design & planning submission) of the Development Agreement;

2.    Delegate authority to the Executive Director of Development, in consultation with the Cabinet Member for Leisure & Housing and the Cabinet Member for Affordable Housing, to approve moving through the remaining Gateways of the Development Agreement and subsequently entering into a lease for the land with Catalyst Housing Limited, subject to the approved budget;

3.    Note that the Development Agreement sets out that if the scheme does not move forward to delivery, that the Council will incur 50% of the Stage 2 costs, an estimate of which is set out in the report. (paragraph 73);

4.    Approve the use the CIL receipts generated to facilitate the delivery of the community and infrastructure works set out in the concept plan and to recommend to Full Council that this commitment is recognised in the Capital Programme in 2022/23 and beyond as a potential future earmarked CIL receipt (for investment in strategic infrastructure and community facilities at Blackbird Leys) and subject to planning;

5.    Recommend to Council to allocate a budget of up to £21.528 million to deliver the scheme for new affordable and market housing, community and retail facilities and new and enhanced public space (paragraphs 11-19) and in line with the funding sources and viability assessment set out in this report. (paragraphs 57 – 62);

6.    Recommend to  Council to allocate the HRA and General Fund spend in accordance with the profile set out in the report.(paragraphs 63-64) and which will supersede any current budget held for this project; and

7.    Commit to the fullest ongoing engagement with the local community as part of the detailed design and planning stage and prior to submission of the planning application.

The decision is to move forward through Gateway One and into Stage Two of the Blackbird Leys Development as set out in the Development Agreement between OCC and their development partner Catalyst Housing Ltd (CHL). Stage Two work will require development of the masterplan within the framework of the financial viability model produced by CHL working with local residents and stakeholders, and the preparation of the planning application.

It was recognised on the selection of CHL as development partner that the project would require a significant amount of subsidy, including assumptions around housing grant, the potential to secure external funds from the Housing and Infrastructure Fund (HIF), alongside the potential to use some of OCC’s Section 106 off-site affordable housing contributions. CHL have also provided a level of internal subsidy to help bridge the gap.

The decision includes the agreement to funding to meet the deficit shortfall including;

1.    Payment to CHL by OCC of Homes England (HE) HIF funding of approximately £6.25m

2.    Allocation of £4.0m HRA funding including a capital contribution of approximately £1.1m to CHL

3.    Payment of approximately £7.6m s106 affordable housing receipts to CHL

4.    Community Infrastructure funds of approximately £1.42m to be used on funding the scheme including use of approximately £902K of CIL generated by the scheme and to support the reprovision of the new community centre, retail facilities and public space.

The total budget commitment by OCC to support the project is £21.528m.

The Development Agreement requires the development of Strategies by OCC and CHL to be agreed as part of the Stage Two work including: Stakeholder engagement, Design quality, Vacant possession and decant, Development and phasing, Financial model and Marketing and management. The financial model includes allocation of funds including appointment of external consultants to manage and deliver the Strategies.

No alternative option. Sign off to move from Gateway One to Two is part of the express delegation from Cabinet given the scale and value of the project.

Tom Bridgman, Executive Director - Development.

Decision taken in consultation with Cllr Alex Hollingsworth, Cabinet Member for Planning and Housing Delivery