The Regeneration and Development Project Manager presented the report which set out the identified opportunity to regenerate the Land to the East of Sevenoaks High Street, following the pressing need to undertake significant work to decarbonise the existing leisure centre and other buildings owned to ensure compliance with new environmental standards. Regenerating Land to the East of Sevenoaks High Street would help achieve this, whilst also helping to deliver other objectives, in line with principles and policies noted in the Council’s Communities Plan, the emerging local plan, the Neighbourhood Plan, the Economic Development Strategy and the Town Centre Strategy.

Various feasibility work and other due diligence studies had been undertaken as set out in the report to explore potential redevelopment options for Land East of Sevenoaks High Street. The bulk of the proposed regeneration area was owned (freehold) by the Council apart from the Library and its associated staff car park and areas of adopted public highways, which are owned by Kent County Council (KCC).

Positive discussions had taken place with KCC regarding a partnership arrangement with the Council on regenerating the area, with both parties working in collaboration with one another against an agreed set of aims and objectives and via a corporate delivery vehicle established with a private sector Strategic Development Partner to deliver the project.

External help and support would be required to deliver this project and would involve appointing various consultants as part of the Project Team. This would ensure confidence and assurance going forward with independent/expert advice with proper due diligence to enable all partners to make informed decisions. Internal staff resources would be shared between the Council and KCC.

It was recommended that the virement of £435,000 be made from the existing £1.5m feasibility budget to allocate towards this project within the approved capital programme. This was not new money but existing capital that would be used for the appointment of the required consultants for this project as set out in section 81 of the report.

The recommended delivery structure for this project of an LLP was a well-recognised and very common vehicle used in Joint Ventures (JV) between councils and private sector developers. KCC was also in agreement with this approach as they were delivering several other schemes using an LLP JV delivery model. The main reasons and benefits associated with this approach are set out in sections 37 to 44 in the report.

Public engagement events were undertaken and the approach and key findings were detailed within Appendix F. The feedback would be used to refine the vision, clearly set development objectives and principles prior to procuring a Strategic Development Partner. Once the Strategic Development Partner has been selected and the LLP has been established further key stakeholder and public engagement exercises will be undertaken as the project progresses and more details emerge.

The Chairman took the opportunity to remind Members that their area of focus was the proposal for the virement for advice and consultants and secondly to comment on the joint venture structure.

Members asked questions of clarification and were advised that it was the intention to improve public transport within the District and this was being demonstrated through the movement strategy. It was anticipated that the development would be inclusive, including environmental factors which would be further considered going forward when detailed studies and surveys that would help inform the design process to ensure key requirements were met. In regards to affordable housing, at least 20% would be needed as one of the key requirements and would need to reflect the Council’s affordable housing policy.

In response to further questions, Members were advised that there was a lot of work that needed to be undertaken in regards to layout of the area but it was important to recognise that once a development partner was brought on, it was expected they would be able to identify opportunities that would not have necessarily been identified by Officers in the first instance. There were a long list of requirements that would be expected of the development partner, and ensuring continuity of service for the library and leisure centre was a priority; and there were limited options for elements of the initial scheme design to be placed elsewhere that would allow for both building construction and service continuity at the same time.

In discussion it was raised that there was support for the scheme and the regeneration of the site, noting the responses from public engagement. Other comments raised included the consideration of boundaries, long term prosperity of the Sevenoaks Town, environmental benefits and equality.

Members were advised that the virement estimation was based on experience and incurred costs to date with similar projects, with a buffer zone. In regards to the LLP structure, the project was primarily for delivering community benefits but there was going to be an element of financial benefits too but this was not the main driver. KCC had experience with LLPs, and initial advice had been sought to consider other possible structures available, but this option would provide the best way to mitigate risk by bringing in partners who had the necessary expertise but also allow the Council to participate financially. The Portfolio Holder for Finance & Investment, also took the opportunity to emphasise that Cabinet would want to satisfy itself fully regarding risks before any formal undertaking was agreed.  It was reiterated that the development was still in its early stages. The finances of the scheme would require further details and could change from those detailed within the report once overall development plans were finalised.

It was suggested by the Chairman that a working group be set up to look in detail at the financial figures behind the scheme and report back to Cabinet.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the public sector equality duty.

Resolved: That

a)     a working group consisting of, Cllrs Grint, Clayton, Manston, Malone and Scott be set up to look at the finances of the Scheme and report back to Cabinet on 16 July 2023

b)      it be recommended to Cabinet that the recommendations be endorsed.