Agenda item

Agenda item

Blackbird Leys Development Project: Variations to Development Agreement with Development Partner

The Executive Director (Development) has submitted a report to (i) seek approval to variations to the Development Agreement between Oxford City Council (OCC) and its development partner, Peabody, for the Blackbird Leys Development Project; and (ii) to seek approval of a revised budget for the Blackbird Leys community centre and delegated powers to assign further Section 106 off-site affordable housing funds to the scheme for affordable housing delivery.

Cabinet is recommended to:

1.        Delegate authorityto the ExecutiveDirector (Development), in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; and Cabinet Member for Inclusive Communities,to agree (within the parameters set out within this report and associated appendices) and sign the final terms of a Deed of Variation to the Development Agreement between OCC and its development partner, Peabody;

 

2.        Approve the revised phased delivery approach for the scheme and the revisions to the allocation of spend and profile of funding for Phases 1 and 2;

 

3.        Approve the allocation of the remaining £1.3 million from Section 106 off-site affordable housing funds, currently delegated to the Head of Planning, to Phase 2 of the Blackbird Leys Regeneration Project;

 

4.        Recommend to Council to approve allocation of an additional £1.5 million of S106 affordable housing funds, not currently delegated to the Head of Planning, to Phase 2 of the Blackbird Leys Regeneration Project;

 

5.        Subject to the agreement of recommendations 3 and 4, delegate authorityfor the spend of Affordable Housing S106 allocated to the BlackbirdLeys Regeneration Project to the Executive Director (Development) in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; Cabinet Member for Inclusive Communities; and the Head of Financial Services/Section 151 Officer;

 

6.        Delegate authority to the Executive Director (Development) in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; and the Cabinet Member for Inclusive Communities to agree an appropriate vacant possession strategy and subsequent implementation of the strategy for obtaining vacant possession of the land required for Phase 2;

 

7.        Delegate authority to the Executive Director (Development) in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; and the Cabinet Member for Inclusive Communities to agree the detailed design to be submitted to the Local Planning Authority, undertake any necessary procurements and enter into any necessary contracts related to the detailed design, construction and fit out for the new Blackbird Leys Community Centre within the agreed budget;

 

8.        Delegate authority to the Executive Director (Development) to agree to Oxford City Council taking over responsibility for the delivery, costs and financial risk of the community centre if Peabody requests this change as a means to improve the scheme’s viability;

 

9.        Note that the delegations from the Cabinet decision in March 2020 remain in place, including the delegations to the Executive Director (Development) relating to passing through future gateways of the Development Agreement; and

 

10.      Note that start on site is still subject to both Oxford City Council and Peabody being satisfied that the viability gateway tests have been met.

Minutes:

The Executive Director (Development) had submitted a report to (i) seek approval to variations to the Development Agreement between Oxford City Council (OCC) and its development partner, Peabody, for the Blackbird Leys Development Project; and (ii) to seek approval of a revised budget for the Blackbird Leys community centre and delegated powers to assign further Section 106 off-site affordable housing funds to the scheme for affordable housing delivery.

Officers provided a correction to paragraph 2 of the report, highlighting that the sentence ‘100% of the homes are affordable, provided as a mixture of 174 (59%) for Social Rented and 120 (41%) for Shared Ownership’ should be replaced with ‘The scheme will provide 174 rented units, and of those 56 units may be affordable rent or social rent and therefore a minimum of 118 will be social rented units.  This was reflected in the approved planning application, which had been granted planning permission on 15 August 2023.

Cabinet resolved to:

1.        Delegate authorityto the ExecutiveDirector (Development), in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; and Cabinet Member for Inclusive Communities,to agree (within the parameters set out within this report and associated appendices) and sign the final terms of a Deed of Variation to the Development Agreement between OCC and its development partner, Peabody;

 

2.        Approve the revised phased delivery approach for the scheme and the revisions to the allocation of spend and profile of funding for Phases 1 and 2;

 

3.        Approve the allocation of the remaining £1.3 million from Section 106 off-site affordable housing funds, currently delegated to the Head of Planning, to Phase 2 of the Blackbird Leys Regeneration Project;

 

4.        Recommend to Council to approve allocation of an additional £1.5 million of S106 affordable housing funds, not currently delegated to the Head of Planning, to Phase 2 of the Blackbird Leys Regeneration Project;

 

5.        Subject to the agreement of recommendations 3 and 4, delegate authorityfor the spend of Affordable Housing S106 allocated to the BlackbirdLeys Regeneration Project to the Executive Director (Development) in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; Cabinet Member for Inclusive Communities; and the Head of Financial Services/Section 151 Officer;

 

6.        Delegate authority to the Executive Director (Development) in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; and the Cabinet Member for Inclusive Communities to agree an appropriate vacant possession strategy and subsequent implementation of the strategy for obtaining vacant possession of the land required for Phase 2;

 

7.        Delegate authority to the Executive Director (Development) in consultation with the Cabinet Member for Housing; Deputy Leader (Statutory) - Finance and Asset Management; and the Cabinet Member for Inclusive Communities to agree the detailed design to be submitted to the Local Planning Authority, undertake any necessary procurements and enter into any necessary contracts related to the detailed design, construction and fit out for the new Blackbird Leys Community Centre within the agreed budget;

 

8.        Delegate authority to the Executive Director (Development) to agree to Oxford City Council taking over responsibility for the delivery, costs and financial risk of the community centre if Peabody requests this change as a means to improve the scheme’s viability;

 

9.        Note that the delegations from the Cabinet decision in March 2020 remain in place, including the delegations to the Executive Director (Development) relating to passing through future gateways of the Development Agreement; and

 

10.      Note that start on site is still subject to both Oxford City Council and Peabody being satisfied that the viability gateway tests have been met.

Supporting documents: