§  To update Cabinet on the outcome of progress of the Local Regeneration Fund (LRF) schemes, delivering significant regeneration projects in the District’s town centres incorporating:

o  Carnarvon Terrace in Clacton-on-Sea (formerly Levelling Up Fund (LUF)): 28 homes, re-provided multi?storey car park, commercial space and public realm; and

o  Homes for Dovercourt (formerly Capital Regeneration Projects (CRP1)): including town centre car park improvements at Milton Road and eight new social homes on Victoria Street;

§  To recommend next steps in taking the projects forwards and confirm Cabinet’s continuing commitment to delivering the schemes;

§  To seek authority to grant two unilateral undertakings (UU) to the Planning Authority:

o  to secure obligations relating to the Recreational Disturbance Avoidance and Mitigation Strategy (RAMS) in relation to the Victoria Street development; and

o  to update the UU for Carnarvon Terrace to reflect its delivery as 100% affordable housing.

RESOLVED that Cabinet formally –

a)       approves progressing the Carnarvon Terrace and Homes for Dovercourt projects and reiterates the Council’s commitment to the delivery of the schemes whilst recognising the ongoing delivery risks;

b)       approves an underlying policy direction and associated ‘in principle’ approach that the tenure mixes of the housing at Carnarvon Terrace be 100% socially rented and for the future management of the scheme to be led directly by the Council, subject to a future full report to Cabinet;

c)       notes the omission from the Carnarvon Terrace budget of £390,000 of grant funding previously identified for Electric Vehicle charging and reported to Cabinet as not secured, for reasons of feasibility attached to the funding terms and conditions;

d)       notes the value engineering underway and authorises the Portfolio Holder for Economic Growth, Regeneration and Tourism, in consultation with the Portfolio Holder for Housing and the Portfolio Holder for Leisure & Public Realm, to approve the submission of amendments to the planning consents as required, to the extent that amendments remain within the parameters of the Memorandum of Understanding with MHCLG and as approved by Cabinet to date;

e)       approves that the Council, in its capacity as landowner and developer, grants an Unilateral Undertaking (UU) to the Planning Authority to discharge the RAMS payment in lieu of a Section 106 agreement for obligations in relation to application reference 24/01911/FUL (“the Victoria Street Development”); and

f)         approves that an application is made to the Council’s Planning Services for the Unilateral Undertaking (UU) dated the 15^th July 2025 given by the Council in respect of planning permission reference 24/01890/FUL for the development at Carnarvon Terrace (‘the Planning Permission’) to be discharged and that a new replacement UU be entered into by the Council for the purposes of securing RAMS, Biodiversity Net Gain Monitoring fee, and 100% Affordable Housing in respect of the Planning Permission.

Cabinet considered a comprehensive report of the Economic Growth, Regeneration & Tourism Portfolio Holder (A.10) which:-

(i)       updated Cabinet on the outcome of progress of the Local Regeneration Fund (LRF) schemes, delivering significant regeneration projects in the District’s town centres incorporating:

·     Carnarvon Terrace in Clacton-on-Sea (formerly Levelling Up Fund (LUF)): 28 homes, re-provided multi?storey car park, commercial space and public realm; and

·     Homes for Dovercourt (formerly Capital Regeneration Projects (CRP1)): including town centre car park improvements at Milton Road and eight new social homes on Victoria Street;

(i)       recommended next steps in taking the projects forwards and confirmed Cabinet’s continuing commitment to delivering the schemes; and

(ii)      sought authority to grant two unilateral undertakings (UU) to the Planning Authority:

·     to secure obligations relating to the Recreational Disturbance Avoidance and Mitigation Strategy (RAMS) in relation to the Victoria Street development; and

·     to update the UU for Carnarvon Terrace to reflect its delivery as 100% affordable housing.

It was reported that, in accordance with previous decisions of the Cabinet, procurement exercises had been undertaken on the TDC-led schemes in late 2025, which had been unsuccessful as only single bids had been received, and which had not adequately demonstrated value for money. Following this, a new approach had been developed, utilising recent changes in procurement legislation.

This approach had been tested with the market in February 2026 through a ‘Pre-Market Engagement’ exercise. This exercise had –

§  demonstrated strong interest from the market in the projects, largely from regional medium scale organisations;

§  established support for the revised procurement approach, which targeted an open process, rather than frameworks, as in the previous unsuccessful attempt, and two stage procurement; and

§  provided detailed feedback on the project programme and budget, including value engineering opportunities.

Next steps

Cabinet was cognisant that delivery of significant regeneration projects of this scale presented challenges to the developer with risks including financial, programme and quality. The level of risk reduced as the project moved through delivery but remained significant at this stage until a contractor was secured for construction. Bearing this in mind, the outcomes of the aforementioned Pre-Market Engagement offered the Council the confidence to move forwards with the projects by suggesting a likelihood of success of a future procurement exercise and the deliverability of the schemes within the existing funding envelope. Risks attached to the funding envelope would be further reduced once an award of contract had been made.

What changes are proposed to the schemes?

Members were informed that alterations to the scheme had been considered as part of the re-procurement strategy, including where value engineering could support value for money and ensuring the projects were deliverable within the available funding.

The general principle was to seek simplification and savings whilst retaining the overall design concept and layout of the schemes, as set out within the funding and planning consent. This meant changes were limited to material and non-material amendments. Key alterations were as follows:

§  delivering Carnarvon Terrace as a 100% affordable housing scheme  ...  view the full minutes text for item 128