The Leader of the Council introduced a report, which provided a progress report on the potential residential projects in Wirral Waters (now likely to be accelerated given the Housing Infrastructure Fund announcement on 1 February 2018) and specifically focused on the Wirral Waters One (Legacy) project.

The number of issues on this project had reduced significantly over the past few months (from over 40). There were still issues as set out in the report, resolution of which was considered fundamental to further progress.

The Wirral Waters One project was being considered on an investment basis by the Council and therefore an acceptable rate of return on the investment would be required. It sought Cabinet’s views in principle on progressing with the Wirral Waters One project, subject to the legal, market economy investor principle and commercial matters set out in the report. Without satisfaction of all these matters the Council could not proceed with the report. Negotiations on a number of matters set out in the report were continuing and therefore would be subject to change. 

A further report would be brought back to Cabinet or the Leader of the Council once the outcomes of the various matters were known.

The Leader welcomed the report and the proposal for the first new residential development at Wirral Waters. Of the 500 units, 20% would be affordable and this would be the catalyst for other residential projects. The re-use of vacant brownfield sites would help to reduce the pressure on land in Wirral’s green belt.

Councillor George Davies reiterated the comments of Councillor Phil Davies and welcomed the proposed development of 500 new homes.

RESOLVED:  That:

(1)  the principle of participating in the scheme to enable the development of building at Wirral Waters of 500 homes and associated commercial tenancies as an investment vehicle for the Council and to kick-start wider development in the area, be agreed;

(2)  Cabinet notes that, subject to receipt of a viable business case, the Council being able to satisfy its statutory requirements and budgetary approval, the Council would achieve this objective through:

(a)  entering into a lease of 500 residential units for up to 50 years;

(b)  taking an option to acquire 350 residential units at the end of the 50 year lease set out in (a) for a long term (in the region of 200 years);

(c)  establishing a trading company limited by shares to hold the 50 year lease and, from year 11, to manage residential tenancies;

(d)  funding of the trading company referred to in (c) for years 1 to 10; and

(e)  providing assurance to the funder that the terms of the lease of the 500 residential units can be met from years 11 to 50.

(3)  officers be authorised to continue to negotiate with the current and potential landowner, developer, landlord and funder and obtain such expert opinions as they consider fit in order to deliver a commercially viable scheme commensurate with the Council’s level of investment.

(4)  a further report be requested at Cabinet or for a Cabinet member decision, at such time as officers are in a position to recommend final approval to enter agreements and establish a Council company for delivery of the scheme.