Agenda item

Report of the Director of Property Management and Property Services

The Cabinet Member for Jobs and Regeneration considered a report of the Director of Project Management and Property Services which indicated that, building on the recent success of promoting residential developments which are attracting people to come and live in and around Coventry’s city centre, the disposal of prominent land at the corner of Parkside and Paradise Street has been identified as the next phase in delivering this key corporate priority.

This part of the city, adjacent to Coventry University’s campus and their industry facing Technology Park, has seen large scale residential accommodation in recent years and the Council is keen to test the development market’s appetite for further residential development in the area. As such and in an attempt to look to expand the type of housing in the area, the Council has sought expressions of interest and tenders from developers keen to deliver new Private Residential accommodation including the Private Rented Sector (PRS) and / or Purpose-Built Student Accommodation (PBSA). 

The land identified for development already has eight small but very popular industrial units located within it and the balance of the development land has been created by the relocation of offices into new accommodation within the immediate area. To maximise the sites’ development potential, it was recognised that these industrial units may need to be moved. It was, however, a precondition of any development proposal that these industrial premises and the businesses which occupy them, should be retained and relocated to new facilities within the wider site.

The Council, acting as planning authority, is in principle supportive of opportunities to promote urban regeneration throughout Coventry and has indicated that this site may be acceptable for residential development subject to full consideration through the planning application process. As such all tenders received are conditional on securing a planning consent.

In line with the agreed principle of seeking to generate revenue the Council, for granting a long leasehold, is looking to receive a percentage of rent generated from the completed development instead of a capital receipt. This new revenue would be used to help fund Council services.

Within the three shortlisted tenders received, each party approached the development differently with regards the type of residential accommodation proposed. One was a pure student housing led scheme, the other a mix of student and private housing with the third being a purely private housing led development. In assessing the tenders, the aspiration of the Council to encourage a greater diversity of residential accommodation across the city centre was balanced against the income generated from each proposal. 

The tender, recommended for approval, proposes to deliver 494 private, residential dwellings to rent, of which 25% would be affordable housing. This provides the strategic mix of residential accommodation and tenures the Council is seeking to compliment existing accommodation in the area, in addition to the re-provision of the industrial estate units. This scheme generates a significant additional annual income to the Council. Although the net new income is lower than the residential schemes which included student housing, it was considered that the social and economic benefits to the residents of the City through the additional private housing outweighed the financial benefit. In light of the current virus pandemic, the considerable number of student schemes still under construction coupled with uncertainty around student number growth in the next few years it was also considered that there was greater certainty around the need for further residential accommodation.  In addition, when the new residential and industrial unit ground rent is combined by the estimated Council Tax income generated, the private residential scheme generates a greater level of income.

The site sits within the Parkside area of the City Centre Area Action Plan (AAP) which supports residential development in principle as part of the wider ‘London Road Gateway’.

The report sought approval to proceed with the long leasehold disposal of the subject land and re-provision of Newgate Court Industrial units to Tenderer 1.

A corresponding private report detailing confidential financial matters was also submitted for consideration (Minute 8 below refers).

RESOLVED that the Cabinet Member for Jobs and Regeneration:-

1.  Declares the part of the land at Parkside, Paradise Street shown edged red in Appendix 1 of this report surplus to requirements.

2.  Approves the grant of a long leasehold interest of Parkside Paradise Street as shown edged red in Appendix 2 to Tenderer 1.

3.  Delegates authority to the Director of Project Management & Property Services following consultation with the Director of Finance and the Director of Law and Governance to agree the final terms of the lease and complete the necessary legal documentation