Agenda item

To approve the development of a Covered Market and Managed Workspace facility at Jaywick Sands and to make the necessary associated decisions required to deliver the project, including seeking approval to use the land held in the HRA for non-housing purposes.

RESOLVED that Cabinet –

(1)     formally approves the Jaywick Sands Covered Market and Commercial Space project to be delivered through the funding received from the South East Local Enterprise Partnership from the Government’s GBF scheme;

(2)     agrees to the project being included within the 2021/22 Capital Programme  with a budget of £2.428m funded by £1.97m from SELEP, £350k from ECC and £105k from the Council’s existing budget relating to the provision of Housing in Jaywick Sands and authorises the Chief Executive to enter into the Funding Agreement with Essex County Council following consultation with the Portfolio Holders for Housing and Business and Economic Growth and the Section 151 and Monitoring Officers;

(3)     agrees, in principle, to the land on the north side of Brooklands, Jaywick Sands and known as the market site, Lotus Way, Jaywick Sands, Clacton-on-Sea, being used for the location of the Covered Market and Commercial space, subject to Secretary of State approval and planning permission being granted;

(4)     endorses the submission of a planning application for Scenario B, acknowledging that funding for the additional cost is currently being sought from Essex County Council;

(5)     authorises the Chief Executive, in consultation with the Portfolio Holder for Housing, to submit  an application  to the Secretary of State under Section 12 of the Housing Act 1985 seeking approval  of the land held in the HRA being used for development on a meanwhile/temporary basis for non-housing purposes for the reasons set out within the Portfolio Holder’s report;

(6)     recommends to Full Council to seek approval for submission of an application to the Secretary of State under Section 32 of the Housing Act 1985 to dispose of the land held in the HRA for a term of 10-15 years by way of lease to a third party to manage the covered market and commercial space once contracted, whilst the future regeneration of the area for housing purposes is developed;

(7)     subject to the Secretary of State’s approval and following completion, the Council will look to adopt this building into its portfolio of assets;

(8)     subject to the Secretary of State’s approval, agrees for the Chief Executive and Assistant Director (Governance) to agree the Heads of Terms for a Lease to COLBEA, as set out in Appendix Four to the Portfolio Holder’s report with regards to future occupation of the site; and

(9)     authorises the Chief Executive, to complete the lease agreement on these terms and such other terms that may be considered necessary, in consultation with the Assistant Director (Governance) and the Portfolio Holders for Housing and Business & Economic Growth.

The Cabinet had before it a comprehensive report of the Business & Economic Growth Portfolio Holder (A.1) which sought its approval for the development of a Covered Market and Managed Workspace facility at Jaywick Sands and for the necessary associated decisions required to deliver the project, including seeking approval to use the land held in the Council’s Housing Revenue Account (HRA) for non-housing purposes. 

Cabinet recalled that it had adopted the Council’s Back to Business recovery plan at its meeting held on 13 November 2020, which had confirmed that a bid had been submitted to the South East Local Enterprise Partnership (SELEP) for a new Covered Market and Managed Workspace facility at Jaywick Sands.  Further to that, on 19 February 2021 Cabinet had announced the success of that funding bid in the Back to Business Delivery Plan and its intention to deliver the project for Jaywick Sands, to ‘support the local economy, grow local entrepreneurship, and grow and retain economic activity and job creation in the local area.’

Members were informed that the project formed part of a wider regeneration initiative that aimed to lift Jaywick Sands out of the bottom decile of the Index of Multiple Deprivation, improving poor quality housing, stimulating economic growth and maximising the potential of the beach for tourism, improving the public realm and increasing flood resilience.

It was reported that the proposal had been developed in response to community needs as well as a wider assessment of demand for small business space in the wider area. There was a demonstrated undersupply of commercial space and a high level of demand for affordable light industrial, studio and basic office facilities within the area. Using the Council-owned vacant site in a very central location in Jaywick Sands presented the opportunity to draw this tenant market to Jaywick Sands, creating employment in the area and stimulating the secondary economy, alongside supporting local start-ups and small businesses in the community through creating a pathway from very affordable market stall accommodation to renting permanent space.

Cabinet was made aware that the site formed part of approximately 30h of land purchased by the Council as part of the regeneration strategy for Jaywick Sands and was currently used for a local market.  Whilst the bulk of the land would be utilised for new build high quality, flood resilient housing, it was also vital that employment opportunities were provided to support the regeneration and economic well-being of the area.  The land was held in the HRA and the original intention of the delivery of housing being a key regeneration principle remained the long term objective with the place plan for Jaywick developing over time.  Therefore, to use the land for a meanwhile use, an application was required to the Secretary of State to make the case for retaining the land within the HRA but using it for non-housing purposes to develop the land (albeit on a temporary basis – 10 to 15 years).

Members were advised that the Jaywick Sands Covered Market and Managed Workspace Project had originally sought to construct 13 affordable rent business units offering 9,500sq ft. lettable area and a covered local market of 10 affordable pitches. Alongside this, the project sought to improve the public realm in the area, which included the creation of a new community garden and a multi-purpose hard landscaped area which could also be used for outdoor markets and seasonal events.

Members were reminded that in September 2020 the Council had applied to the SELEP for funding under the Government’s Getting Building Fund (GBF) and that in November 2020 the Council had been notified by the SELEP that its bid for funding in the value of £1.97m, had been successful.This award of funding, together with that allocated by the Council (£105,535), and by Essex County Council (£50,000), provided a total project fund of £2,127,535.

Cabinet was informed that the SELEP’s award of grant was subject to two critical conditions:

1.    that its Funding Agreement would not be issued unless the scheme secured Planning Permission by the end of July 2021. Project costs to that point were at the Council’s risk. Should planning permission not be secured within the stipulated timetable, then the SELEP would withdraw its offer of grant funding. 

2.    the Council must spend its full allocation of GBF funding by March 2022. Failure to meet this condition could result in the forfeiture and repayment of the funding awarded.

The principal elements of the project and the associated timetable were as follows:

Members were aware that this project formed part of a programme of wider regeneration and would deliver an extensive range of positive social impacts to help alleviate the severe deprivations experienced by much of the Jaywick Sands community including increased employment opportunities, increased training opportunities, a rise in skills and employability, pride in the area, a rise in aspiration, especially amongst younger people, and significantly improved health benefits through affordable access to fresh foods. It was highly deliverable, relatively quick to implement and would be the catalyst to unlocking future opportunities in the most deprived neighbourhood in England.

It was felt that this project responded to social and economic changes exacerbated by Covid-19, including the lack of access to neighbourhood shops and services for everyday necessities within walking distance, as well as the need to support employment and generate inward investment and jobs growth in the community given that coastal communities were amongst those hardest hit.

Members were aware that the Project had been identified by Cabinet as one of the proposed Key Priority Actions for 2021/22 at its meeting held in January 2021 (Reference D1) and following consultation with the Overview and Scrutiny Committees, had been formally approved and adopted with milestones in March 2021.  The project would form part of the Council’s performance monitoring report for 2021/22.

Cabinet was made aware that in December 2020, the Council had moved to procure its Professional Team (HAT Projects) to lead on the technical design and cost planning of the proposed building and to manage the construction phase through to completion. Subsequently, in February 2021, the Council had selected its Operating Partner (COLBEA). COLBEA would assist HAT Projects with the Building Design (Space Planning) and prepare a Business Plan and Marketing Plan during the pre-construction and construction phases of delivery. It was proposed (subject to Cabinet, Council and Secretary of State’s approval) that COLBEA would be contracted via a lease to manage the building when the facility was constructed and it became fully operational.

Members were informed that COLBEA had a long history in the provision of business support services and was experienced in the successful management of incubation and managed workspace. COLBEA’s expertise and advice had led to some changes in the planned internal space arrangements of the building, which if approved would require additional funding in the value of £300,000.

It was reported that Essex County Council had indicated that it might be able to support this requirement and work was in hand to secure confirmation of this additional allocation.

The Portfolio Holder’s report therefore presented two development scenarios for Cabinet’s consideration, namely:

·         Scenario A – this development scenario fitted the original funding allocation of £2,127,535; and

·         Scenario B – this development scenario was based on an amended design and required additional project funding in the value of £300,000 (giving a total scheme value (£2,427,535).

It was this latter scheme that the Portfolio Holder proposed would be put forward in the Council’s Planning Application.

Pursuant to the provisions of Cabinet Procedure Rule 1.5(ii) the Leader of the Labour Group (Councillor I J Henderson) requested that his Group’s concerns about the following matters be recorded in the minutes of the meeting:-

·           the current levels of deprivation in the West Clacton & Jaywick Sands Ward and whether there was a target to reduce them;

·           how many residents were living in sub-standard housing in that Ward?;

·           how many Council owned or social rent houses had been built in that Ward?

·           when would the next phase of social housing in Jaywick Sands be built in order to take people out of sub-standard housing?

·           who would be the Accountable Officer for this project following the retirement of Paul Price, the former Corporate Director (Place & Economy)?

The Leader of the Council (Councillor Stock OBE) requested that a detailed response be sent to Councillor Henderson on the above.

Having considered all of the information and advice contained in the Portfolio Holder’s comprehensive report and its appendices:-

It was moved by Councillor Newton, seconded by Councillor G V Guglielmi and:-

RESOLVED that Cabinet –

(1)     formally approves the Jaywick Sands Covered Market and Commercial Space project to be delivered through the funding received from the South East Local Enterprise Partnership from the Government’s GBF scheme;

(2)     agrees to the project being included within the 2021/22 Capital Programme with a budget of £2.428m funded by £1.97m from SELEP, £350k from ECC and £105k from the Council’s existing budget relating to the provision of Housing in Jaywick Sands and authorises the Chief Executive to enter into the Funding Agreement with Essex County Council following consultation with the Portfolio Holders for Housing and Business and Economic Growth and the Section 151 and Monitoring Officers;

(3)     agrees, in principle, to the land on the north side of Brooklands, Jaywick Sands and known as the market site, Lotus Way, Jaywick Sands, Clacton-on-Sea, being used for the location of the Covered Market and Commercial space, subject to Secretary of State approval and planning permission being granted;

(4)     endorses the submission of a planning application for Scenario B, acknowledging that funding for the additional cost is currently being sought from Essex County Council;

(5)     authorises the Chief Executive, in consultation with the Portfolio Holder for Housing, to submit an application to the Secretary of State under Section 12 of the Housing Act 1985 seeking approval of the land held in the HRA being used for development on a meanwhile/temporary basis for non-housing purposes for the reasons set out within the Portfolio Holder’s report;

(6)     recommends to Full Council to seek approval for submission of an application to the Secretary of State under Section 32 of the Housing Act 1985 to dispose of the land held in the HRA for a term of 10-15 years by way of lease to a third party to manage the covered market and commercial space once contracted, whilst the future regeneration of the area for housing purposes is developed;

(7)     subject to the Secretary of State’s approval and following completion, the Council will look to adopt this building into its portfolio of assets;

(8)     subject to the Secretary of State’s approval, agrees for the Chief Executive and Assistant Director (Governance) to agree the Heads of Terms for a Lease to COLBEA, as set out in Appendix Four to the Portfolio Holder’s report with regards to future occupation of the site; and

(9)     authorises the Chief Executive, to complete the lease agreement on these terms and such other terms that may be considered necessary, in consultation with the Assistant Director (Governance) and the Portfolio Holders for Housing and Business & Economic Growth.