Decision details

Bath Western Riverside will provide up to 2284 new homes on former industrial land in the heart of the city. The scheme was committed in 2010 and has now built out 854 new homes including 25% affordable homes. The remaining land comprises forma gas works and live operational gas infrastructure which risks the delivery of the remaining 1000+ homes. The Council has a continuing role using external grant funding to secure delivery of this strategically important project in the heart of the Bath City Riverside Enterprise Zone.

The Cabinet Member and Leader  agree to;

a.  Increase the Provisional Capital programme item for Bath Western Riverside from £12.5M to £29.8M to incorporate additional external funding allocations from WECA and Homes England;

b.  Delegate the approval to the Director of Economy and Growth in consultation with the S151 Finance officer to;

I.  Enter funding agreements with Homes England and WECA to fund infrastructure and land investment in the future phase of Bath Riverside on the former gas lands and Council waste site.

II.  Move provisional capital approved to full approval upon entry to Funding Agreements and commitment to proceed on infrastructure expenditure.

III.  Recycle initial investment in enabling infrastructure to support the Council’s aims to deliver additionality to affordable housing provision and school delivery as part of the future project outcomes.

c.  Approve the execution of actions under the Council’s Corporate Agreement with Crest entered in 2010 to exercise its pre-emption to acquire undeveloped land within the Bath Western Riverside project (the Site).

d.  Delegate to the Director of Economy and Growth the power to appropriate for planning purposes the Site (pursuant to section 122 of the Local Government Act 1972) and to exercise the power, if required, under Section 203 of the Housing and Planning Act 2016 (“Section 203”) to facilitate the carrying out of the development of the Site.

3.1  Bath Western Riverside (BWR) is a major component of the Councils SHLAA and housing delivery trajectory. The project was committed in 2010 under Decision 2216. Phase 1 has successfully delivered 854 new homes. The Council has managed the application public grant funding to deliver infrastructure and 25% affordable housing within Phase 1.

3.2  Under a Corporate Agreement with Crest, B&NES have been working to facilitate continued development of Phase 2, the remaining undeveloped land. Current Ownership is split between National Grid, Crest and B&NES.

3.3  Crest has now served a pre-emption notice for their remaining land within the scheme (an obligation of the Corporate Agreement). Exercising the pre-emption right would result in B&NES owning a 44% share of Phase 2 land, giving it control over future residential delivery. Land control alongside the application of infrastructure grant funding enables the public sector to directly control the delivery of around 450 new homes within the remaining scheme.

3.4  Under the Pre-emption process B&NES has a limited time to proceed. As a result, the Council will enter the decision under Rule 15 General Exception powers to ensure it can meet its obligations under the Corporate Agreement.

3.5  The project will deliver against a number of key Council priorities:-

I.  Creating and developing a better quality of life - facilitating high quality urban design, built environment and distinct sense of place where communities can thrive.

II.  Create vibrant, diverse communities with a range of accommodation to meet needs of local people.

III.  Improving the local environment - regenerate 12.7 acres of brownfield land, incorporating green infrastructure and improved access to the river and tow path.

IV.  Minimise carbon emissions by securing low carbon housing development with low energy needs.

V.  Leverage the site's natural assets and inner city location to promote use of sustainable travel modes.

3.6  The Council's objectives are:

I.  Achieve comprehensive development in line with the Core Strategy Placemaking  Plan policy SB8.

II.  Deliver a 1 Form Entry Primary school with early years and community space provision within the development

III.  Deliver homes focussed upon economically active younger demographic occupiers within the Bath Enterprise Zone.

IV.  Continue to diversify tenure options within the city’s housing supply.

V.  Maximise the provision of affordable housing given the viability challenges presented.

VI.  Use external grant funding to support Council objectives, recycling value to deliver on-site affordable housing.

VII.  Unlock development potential of waste site for delivery via the Councils wholly owned company, as part of the future land supply pipeline.

This project now seeks to facilitate public sector land acquisition at phase 2 of Bath Western Riverside, known as "Bath Riverside", and ready land for development via delivery of key infrastructure and enabling works with the assistance of external grant funding. Phase 2 land benefits from outline planning consent which includes B&NES Waste Site land to the north of the river. Collectively Phase 2 is the largest residential allocation in central Bath (approx. 1000 new homes) and forms a central plank of B&NES 5-year housing supply. Despite benefitting from outline consent, the complex land ownership arrangements and significant infrastructure investment required to unlock the site renders proposed residential development challenged without public intervention. Funding agreements with Homes England provide funding for pre-defined infrastructure including: drainage, roads, remediation works, river walls, school, parks provision and waste relocation costs.

The Council has considered the other options available to safeguard the delivery of new homes in Bath as;

1.  Do Nothing – The Council leaves it to the market to bring the land forward once viable to do so. Given the complexity and expense of up front infrastructure and remediation, this is likely to continue to stall development for a number of years.

2.  Do not exercise Council pre-emption - B&NES do not exercise pre-emption. B&NES could still act as contracting authority to administer the MVF; however the ability to draw this in is completely reliant upon private landowners to deliver the Council's contractual obligations to Homes England (infrastructure works and housing outcomes). This introduces an unacceptable commercial risk on the Council.

None