Issue - decisions

Issue - decisions

Blackbird Leys Development Project Detailed design

21/11/2023 - Blackbird Leys Regeneration Project: Progression of Phase 1 through Viability Gateway 2

To move through Viability Gateway 2, as outlined in the Development Agreement between Oxford City Council and Catalyst Housing Limited, now Peabody, into Stage 3.

It must be noted that this decision is for Phase 1 only, and that the Deed of Variation to the Development Agreement adds an additional viability gateway for Phase 2.


23/02/2023 - Blackbird Leys Regeneration Project authority from Delegated Executive Officer to move from Gateway 2 under the Sealed Development Agreement to Gateway 3

The decision is to move forward through Gateway Two and into Stage Three of the Blackbird Leys Development.

The decision to progress through Stage Two enables CHL to submit the planning application for the redevelopment proposals including the District Centre redevelopment and the Knights Road development.

Stage Three work is the Post Planning Appraisal and Post Planning Viability condition as set out in the Development Agreement between OCC and their development partner Catalyst Housing Ltd (CHL).

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

The Development Agreement sets out the need for a series of viability reviews at each key stage. The decision to move through Gateway Two recognises that the latest viability model has identified a potential deficit of c4.11m after OCC funding has been taken into account.

This deficit will be subject to further review and mitigation measures by CHL during Gateway Three. CHL have agreed that OCC will not be required to provide any further financial contribution and that any remaining deficit on conclusion of the Gateway Three viability test will need to be met by CHL if the development is to proceed.


12/12/2021 - Blackbird Leys Regeneration Project authority from Delegated Executive Officer to move from Gateway 1 under the Sealed Development Agreement to Gateway 2

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.


30/04/2020 - Blackbird Leys Development Project Detailed design

Decision taken

1.     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);

 

2.     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.

 

Paragraph numbers refer to the report considered by Cabinet on 11 March 2020.

All documents relating to this decision are published as part of the papers for the 11 March Cabinet meeting.