Agenda item

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3532 which is to be considered by cabinet at its meeting on the 28 May 2026.

This report contains exempt appendicies (Appendicies 3, 4, 5, 6 and 7), if members wish to discuss any part of this exempt appendix, then the procedure under agenda item 8a (below) applies.

Councillor Martin Tod, Leader and Cabinet Member for Regeneration introduced the report, ref CAB3552 which set out proposals for the Bar End Depot Disposal. The introduction included the following points.

1.    The council had wanted to progress the Bar End Depot site for some time, and community engagement highlighted priorities for a convenience store and affordable housing. Improved access and permeability through the site were also key objectives.

2.    The paper set out two bids which differed in regard to   the size of the convenience store and the provision of 82 affordable homes versus a higher financial return.

3.    Legal advice confirmed the council was able to make the decision to accept a lower financial return to secure these community benefits.

4.    Public meetings had been held to shape the proposal that had been offered to the market.

Councillor Danny Lee addressed the committee. He noted that the proposal involved a trade-off between housing benefits and value for money to bring a brownfield site into productive use. He questioned whether accepting a lower bid to secure 82 affordable homes was appropriate and whether selling the site, rather than retaining it, was the right choice. He further highlighted the urgent need for social housing in the district and questioned whether the planning policy could be challenged to allow for higher-storey developments. Finally, he sought clarification on whether the proposal was appropriate given it did not explicitly guarantee social rent housing units alongside affordable housing.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3532, which was to be considered by cabinet at its meeting on 28 May 2026.

The Chair invited members to focus their inquiries on two primary areas:

1.   The balance of value, specifically the justification for accepting a lower financial offer in exchange for increased affordable housing and public benefit.

2.   The deliverability of the project, including the degree of confidence in the proposed scheme coming forward and its reliance on planning consent.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised, grouped in line with the key areas identified by the Chairperson.

Balance of Value

1.   A question was asked regarding how accepting a lower offer was justified in terms of affordable housing and wider public benefit.

2.   A number of questions were asked regarding the housing element of the proposal including

a)    Whether the affordable housing units will be for rent, if there are restrictions on shared equity, and the percentage splits between social and shared ownership housing.

b)    Regarding the proposed 82 units, including the council's commitment to this number and what leverage exists to maintain it if the number is reduced during the planning process.

c)    The proposed housing mix, addressing the weighting towards four-bedroom properties compared to the local need for one and two-bedroom properties.

1.   A question was asked about what safeguards were in place to protect the council's position if planning consent was not achieved or the scheme was delayed.

2.   Further clarification was sought regarding risk management and what the capital receipt could be used for other than reducing previously unfinanced capital expenditure.

Deliverability

1.   Further clarification was sought on the confidence in getting the site delivered and the anticipated timescales for delivery.

2.   Further clarification was sought on the status of Homes England grant input and whether there were any conditions attached for the bidder to deliver the site.

3.   Clarification was requested on whether there were any contamination issues to be aware of, given the previous uses of the site and whether the purchaser was covering the costs of any remediation works.

4.   A question was asked about the evidence reviewed regarding the bidder's delivery performance, adherence to timescales, and commitment to the project.

Wider Considerations

1.   Further clarification was sought on whether the local resident’s group was content with the proposal, given the extensive previous engagement regarding a convenience store.

2.   A question was asked whether the council was satisfied that access needs and traffic flow mitigations were adequately controlled ahead of planning discussions.

These points were responded to by Geoff Coe, Corporate Head of Asset Management, Councillor Martin Tod, Leader and Cabinet Member for Regeneration, and Neil Aitken, Service Lead: Finance and Deputy S151 Officer accordingly.

RESOLVED:

The committee agreed the following comments and recommended to cabinet:

1.    That the committee supported the proposals and welcomed the provision of affordable housing.

2.    That the committee expressed a keen interest in ensuring the proposed 82 housing units were built.

3.    That the committee noted the importance of confidence in the deliverability of the scheme and supported the project moving forward.