Agenda item

To consider a report by Councillor Huw Williams, Chair of Communities Scrutiny Committee (copy enclosed) detailing the conclusions reached by the Scrutiny Committee following consideration of the call-in of the Cabinet decision taken on 22 September 2020 in respect of the disposal of land adjacent to Ysgol Pendref and recommending Cabinet revisit its decision to take into account the Scrutiny Committee’s conclusions and further recommendations.

Vote taken: 4 in favour, 4 against, 0 abstentions; Leader used his casting vote in favour to carry the resolution.

 

RESOLVED that Cabinet –

 

(a)       acknowledges Communities Scrutiny Committee’s conclusions and recommendations following its review of the Cabinet decision of 22 September 2020, and

 

(b)       having reviewed their decision and taken into account the recommendations from Communities Scrutiny Committee, reaffirm the Cabinet decision made on 22 September 2020 to –

 

(i)    “approve the disposal of land adjacent to Ysgol Pendref, Denbigh outlined in red on the plan (Appendix A to the report) which is surplus to Council requirements on the open market for residential development and delegates authority to the Lead Member for Finance, Performance and Strategic Assets to approve the final sale, and

 

(ii)  confirms it has read, understood and taken account of the Well-being Impact Assessment (Appendix B to the report) as part of its consideration”

Councillor Huw Williams, Chair of Communities Scrutiny Committee presented the report detailing the conclusions reached by the Scrutiny Committee following consideration of the call-in of the Cabinet decision taken on 22 September 2020 to dispose of land adjacent to Ysgol Pendref, Denbigh which was surplus to council requirements on the open market for residential development.

 

Cabinet was advised of the detailed discussions which had taken place at the Communities Scrutiny Committee meeting in respect of the Cabinet decision.  The conclusions of the Scrutiny Committee had been set out in the report together with their recommendations.  In brief the Committee had recommended that Cabinet –

 

·         acknowledges the Scrutiny Committee’s conclusions and recommendations

·         revisits its decision having regard to the vision for future social and affordable housing as set out in the draft new national development framework ‘Future Wales – the National Plan 2040’

·         delays the decision in relation to this particular site for 12 months until the new national development framework was agreed

·         considers options to make the land more attractive to social landlords and smaller developers by breaking it up into smaller parcels/plots, and

·         does not create an oversupply of large unaffordable homes in Denbigh which did not meet local need.

 

As Lead Member, Councillor Julian Thompson-Hill reminded Cabinet that the land in question had been allocated for housing in the Local Development Plan (LDP) in 2013 following all the appropriate processes and consultation stages.  The land was held within the Housing Revenue Account (HRA) and therefore any capital receipt from the sale would be ring-fenced for the HRA and could not be used for other purposes.  He responded to the scrutiny recommendations as follows –

 

·         the WG’s draft national development framework was still in draft form with no indication that any new funding would be provided to support the affordable housing aspirations.  Whilst local authorities would be able to access the social housing grant from April 2021 the funding would be a finite amount top sliced from existing budgets for which councils would need to bid against each other and contribute financially.  The 58% intervention rate for registered social landlords would be protected and the amount to councils was not expected to be sizeable

·         delaying a decision on the off chance that something may happen in the future was not a sustainable way to make decisions.  The capital receipt from the sale of the site had already been assumed in the HRA business plan and any delay would impact on the delivery of that plan resulting in less new build housing or less maintenance on existing stock or a combination of both, and there would be no affordable housing provided on the site for a longer period

·         there were significant reasons why it would not be practical to break up the site into smaller development plots, namely the impact on the capital receipt and unit cost of the affordable housing proposed arising from the higher cost of the development and lower value of the land.  Smaller plots increased costs at all stages of development and a consortium of developers would need to agree an entire programme of works prior to purchase.  The council could provide the infrastructure at risk and cost with no guarantee monies could be recovered from future purchasers and it would also reduce or negate any capital receipt

·         in terms of creating an oversupply of unaffordable homes not meeting local need, the proposed sale would be on the open market with a condition of 20% affordable homes which provided double the number of affordable units required under the LDP.  There was an unmet demand for both affordable and market housing in Denbigh and the site would go some way to addressing that.  There was an expectation under Policy BSC1 that development would provide a range of tenures to reflect the need and demand on development sites and a mixed nature of development would meet that policy.  There had been some debate at scrutiny about the impact of other housing developments, particularly with regard to the former North Wales Hospital site with approximately 300 homes proposed.  Those homes would be phased over a ten year period and would likely be of a different tenure from those proposed on the site in question

·         by way of background there were approximately 123 new affordable units being built or already planned for Denbigh not including the 20% from this site.  Reference had been made at scrutiny to SARTH (Single Access Route to Housing) data and figures for Denbigh but it was also important to bear in mind the waiting times for affordable housing in the various communities with Denbigh being significantly lower than Rhyl or Prestatyn.  The draft LDP also included a vastly reduced target in terms of new houses over the duration of the plan.

 

Having reviewed scrutiny’s recommendations Councillor Thompson-Hill advised that he was unable to support them for the reasons outlined and he recommended that Cabinet reaffirm their decision to dispose of the site on the open market.

 

At the Leader’s invitation and to provide some context to the new draft national development framework, the Corporate Director: Economy and Public Realm quoted from the notes accompanying that document on the WG website which advised that it was not a new or final version but a working document which could change following Senedd scrutiny and it must not be used as a source of policy.

 

Cabinet debated the merits of the scrutiny recommendations at length and there were mixed views as to whether a case had been made to warrant a different decision.  Councillor Mark Young highlighted that neither the site in question nor the former North Wales Hospital site had planning permission which was subject to a separate process.  He was concerned that out of 400 houses across both sites only 20 affordable homes would be delivered and believed the council had an opportunity to be more ambitious.  Therefore he supported delaying the decision with a view to increasing the amount of affordable housing on the site.  Cabinet raised questions regarding links to other housing development sites and affordable housing provision together with the impact of delaying the decision on future housing need and delivery of the HRA business plan.  Clarification was also sought on the potential for a new school building on the site.

 

Councillor Thompson-Hill, Corporate Director: Economy and Public Realm and the Programme Manager – Housing Development responded to questions as follows –

 

·         no planning permission had been granted for the site but the principle of housing was established in 2013 when the land was allocated for residential purposes in the LDP following the necessary processes and consultations

·         planning permission had not yet been granted for the former North Wales Hospital site which was an enabling development (completely separate to the current site) and not predicated on bringing forward affordable housing.  It was not an allocated housing site in the LDP but had been included under a specific policy to allow an enabling development in the grounds as a means to invest and protect the listed building; affordable housing was not a requirement but would be welcomed if it came forward as part of that development

·         20% affordable housing would be stipulated in the sale agreement and be legally binding.  The 20% had been calculated to ensure any development was deliverable and financially viable and would generate a capital receipt to deliver the housing stock business plan.  Councillor Tony Thomas confirmed that a higher than expected level of affordable housing had been delivered in the past averaging just over 30% in the last 3 years and based on past history the site could potentially deliver more than the 20% stipulated.  In any event the capital receipt generated would have a positive impact on the council’s housing stock

·         the council’s disposals protocol as applied was explained for which only the HRA indicated a requirement for the land.  Although the recommendation on sites to go forward for Band B of the 21st Century Schools Programme had only been discussed at the last Cabinet meeting, the Education Department had been fully aware of the proposals for the land and advised that they would not be looking to this particular site.  Councillor Huw Hildtich-Roberts confirmed that position and further explained the assessment work carried out in respect of Band B in 2016 with a number of options in the area with regard to Ysgol Pendref which could be further explored following WG’s approval of funding

·         it was understood that Denbigh Member Area Group (MAG) had been consulted on the initial proposals for the site prior to its allocation in the LDP.

 

Councillor Richard Mainon recognised the merits of the recommendations put forward by scrutiny and expressed his frustrations with the planning policies and guidance, particularly the LDP.  However he had reservations about delaying a decision based on contingent legislation.

 

The Chair invited non-Cabinet members to speak and ask questions.  Councillor Rhys Thomas stressed that the new draft national development framework had been out to consultation and was likely almost in final form and provided the council with an opportunity to benefit at an early stage.  He reiterated his concerns regarding the number of houses and types of housing developments currently being built or already planned for Denbigh and also sought clarification regarding potential sites for Ysgol Pendref.  Councillor Glenn Swingler elaborated upon the grounds for calling the review of the Cabinet decision and urged Cabinet to delay the decision in line with scrutiny recommendations.  Councillor Merfyn Parry highlighted his concerns and supported delaying the decision; he also suggested a land swap with Jones Bros as part of the development of the former North Wales Hospital site to facilitate a new school building.  Councillor Graham Timms referred to the clear emphasis in the draft new framework on the need for affordable housing and urged Cabinet to delay the decision to find out how much weight it would carry.

 

The relevant Lead Cabinet members and the Corporate Director: Economy and Public Realm responded to the further comments and questions raised as follows –

 

·         confirmed consideration should be given as to how much weight to attach to the draft new national development framework given that it had yet to be adopted

·         Councillor Huw Hilditch-Roberts reported upon previous discussions with Denbigh MAG on options for Ysgol Pendref with some scoping work having been carried out on existing sites when the schools amalgamated.  All options would be fully scoped once the funding had been approved by WG but the site in question had not been considered a viable option for a new school building because of topography and infrastructure issues

·         with regard to timescales the land had been allocated for residential purposes in the LDP in 2013 and appropriated into the HRA in 2016.  HRA had been working through priorities on site acquisition on other properties and areas for development and had now reached priority to deliver on this site

·         the HRA was submitted to Cabinet annually and also reported upon monthly as part of the regular finance report with £19.2m currently within the capital plan and headroom for approximately 220 new built properties in that plan

·         the former tenant of the land had purchased most of the land holding he had previously rented but did not purchase this particular field and agricultural estates did not wish to retain it as a stand-alone field; it had been let on a short term grazing licence until such time as the development was brought forward

·         the 20% allocation for affordable housing would be a condition of sale and therefore the minimum amount guaranteed to be delivered from the site

·         reaffirmed the proposal to dispose of the land on the open market with nothing to preclude Registered Social Landlords from purchasing the site

·         the Corporate Director felt it was too early to comment on the merits or otherwise of the suggested land swap to facilitate a new school building which would need further investigation to assess its feasibility.  Councillor Hilditch-Roberts added that it would also warrant discussion with local members first.

 

At the close of the debate Councillor Mark Young reiterated the need for more affordable housing in Denbigh and he believed delaying the decision would provide the council with the opportunity to provide more affordable housing.  Consequently Councillor Young proposed the Scrutiny Committee’s recommendations as set out within the report.  In seconding the proposal Councillor Bobby Feeley felt that a case had been made to delay the decision based on the scrutiny committee’s recommendations and conclusions and valid points put forward at the meeting.

 

In his final statement Councillor Huw Williams urged Cabinet to support scrutiny’s recommendations and delay the decision for 12 months which would also allow the opportunity to investigate a potential land swap to facilitate a new school building.

 

In his closing statement Councillor Thompson-Hill reaffirmed his original decision and proposed an amendment, seconded by Councillor Tony Thomas to acknowledge scrutiny’s recommendations and conclusions and to reaffirm the Cabinet decision made on 22 September in relation to disposal of the site.

 

Cabinet voted on the amendment as follows –

 

FOR – Councillors Julian Thompson-Hill, Tony Thomas, Brian Jones and Hugh Evans [4]

 

AGAINST – Councillors Mark Young, Bobby Feeley, Huw Hilditch-Roberts and Richard Mainon [4]

 

There being a tied vote the Leader used his casting vote in favour to carry the amendment.  The amendment became the substantive recommendation and Cabinet members reaffirmed their previous voting position again resulting in a tied vote.  The Leader used his casting vote in favour to carry the resolution.

 

RESOLVED that Cabinet –

 

(a)       acknowledges Communities Scrutiny Committee’s conclusions and recommendations following its review of the Cabinet decision of 22 September 2020, and

 

(b)       having reviewed their decision and taken into account the recommendations from Communities Scrutiny Committee, reaffirm the Cabinet decision made on 22 September 2020 to –

 

(i)    “approve the disposal of land adjacent to Ysgol Pendref, Denbigh outlined in red on the plan (Appendix A to the report) which is surplus to Council requirements on the open market for residential development and delegates authority to the Lead Member for Finance, Performance and Strategic Assets to approve the final sale, and

 

(ii)  confirms it has read, understood and taken account of the Well-being Impact Assessment (Appendix B to the report) as part of its consideration”

 

[At this point (12 noon) the meeting adjourned for a ten minute refreshment break]