POTENTIAL DELIVERY OF NEW HOMES

Descriptions

THIS IS NOT A PROCUREMENT EXERCISE AT THIS STAGE. Daventry District Council (DDC) is looking to carry out a market engagement exercise with potential developers. The Council is seeking views from developers in relation to further developing an understanding of the how to proceed with the potential design, construction, marketing and sale of 50+ new homes on land owned by DCC, known as Site 8 East at Middlemore, Daventry. Developers are asked to consider a number of questions set out on the attachment and let DDC know their views. As well as providing a prime residential development site, DDC has a capital budget of approximately £7.5million it can invest into this potential development. This does not preclude a potential development partner from adding its own capital to this budget. DDC is expecting a cash return on its investment as opposed to physical assets. The return DDC receives is intended to represent a fair share of the overall profit arising from developing the site taking into account costs, sales and land value. This Market Engagement Exercise is seeking views on how this arrangement, including the financial aspects, may best work. DDC is looking for a potential development partner, in order to capitalise on the experience and knowledge of the private house building sector that it could bring to this project. In return DDC will offer an alternative funding source to any other that an established housing building company may currently draw upon. With housing sites becoming harder to secure it is also offering an allocated housing site on a very attractive housing estate on the edge of Daventry. Feasibility work has been undertaken on this site which has reviewed planning and site information, indicating that there are no major obstacles to its potential development. A capacity study undertaken indicates that it is possible to accommodate on the site a scheme of 50+ units (based on around 35 units per hectare) of mixed sizes and type of units, ranging from 1 bed flats through to 5 bed detached houses. It will be the responsibility of the developer to propose what is thought to be the most appropriate mix for this site taking into account local housing needs and demands and the requirement to deliver a minimum return on DDC's investment, within a set timescale. However there will be some quality standards too that the developer will be asked to comply with, as set out below. Of the 50+ units to be built, 25% of the units will be affordable and made available to a registered provider, to be selected by the developer but agreed with DDC. The remaining units will be designed, built, marketed and sold by the developer.