Development projects update
St Albans City and District Council has carried out a strategic review of its major development projects in light of difficult economic conditions.
A report on the Council’s capital regeneration plans was given to a meeting of the Regeneration and Business Committee on Monday 23 January.
Members accepted the recommendations which will still see some projects continue to completion despite the financial challenges faced by the Council.
However, a number of other projects will be paused and some stopped altogether in order to control unprecedented increasing costs beyond what could be reasonably foreseen.
Councillor Robert Donald, the Committee’s Chair, said after the meeting:
We have been confronted with some very hard choices in our development programme because of the sudden and unexpected deterioration in the national economic outlook over the last few months.
The general inflation rate has soared above 10% while the costs of many building materials and building contracts have risen even more than that alarming figure. There have also been above inflation increases in supply chain costs.
As a District Council, we are required by law to produce a balanced budget, ensuring that our projected spending does not exceed our income.
If we didn’t take action to make savings or increase revenues, our budget gap for the next financial year, 2023/24, would be over £2 million, a huge figure for a District Council of our size.
As a result, we have had to review our development projects along with all our other activities and update our property investment strategy for 2023/24.
This has inevitably led to us putting some projects on the back burner and ceasing a couple altogether. This is obviously very disappointing for us after the work that has already been undertaken on these projects but I am sure our residents will understand that we have little choice given the tough financial climate.
We have however, sought to protect projects that deliver the Council’s top priorities on providing social housing and supporting community facilities. I am very pleased that it has been agreed we can still continue with a number of these including some really exciting ones which are close to completion.
Among the projects the Council will continue to undertake and which are all due for completion in April are:
- Jubilee Square, formerly known as CCOS South: the regeneration project is on the site of the City’s former police station and an NHS clinic. This complex will provide 93 new homes with 33 social housing flats and 60 for market sale and 6,000m² of commercial space for businesses and other organisations.
- Leyland Avenue, St Albans: seven houses for sale at market rate.
- Noke Shot, Harpenden: four properties for social rent to people from the Council’s housing register with seven homes for market sale.
- Ridgeview, London Colney: 10 flats for rent at market rate and 10 temporary housing apartments.
The Committee agreed to pause the redevelopment of both the Market Depot site in Drovers Way and business space at 35 Market Place, both in St Albans. A review is to be conducted of options for both including a new commercial lease for the latter property.
Work to rebuild the Fleetville Community Centre, Royal Road, St Albans, remains a Council commitment but will also be temporarily paused while officers investigate alternative construction methods, new enabling development options, different sources of capital and future maintenance funding for the project.
Work will cease on projects to redevelop the Harpenden Public Halls site and the former public toilets at 35 Spicer Street, St Albans.
Officers will look at options for the disposal of both sites while seeking to achieve best value and consulting with relevant interested parties.
Members also agreed to the sale in principle of new homes at Jubilee Square to the Watford Community Housing Trust subject to further negotiation.
Concept design work on CCOS North, an ambitious project to redevelop the civic area surrounding the Alban Arena, had already been paused. This project will recommence when a new cultural strategy for the District has been agreed and the Council’s budget position along with the national building economy recovers.
During January and February, the Council’s service committees, including the Regeneration and Business Committee, are considering their budgets and the recommendations they will make to the Policy Committee which meets on 9 February.
Policy Committee will consider proposals and propose the final draft budget for consideration by Full Council at its meeting on 22 February at which point final decisions to agree the budget for 2023/24 will be taken.
Councillor Donald added:
This has been a comprehensive review in which we have been realistic about what is achievable in these most challenging financial times.
I’m very pleased that we will still be able to create a significant amount of new social housing and, of course, complete our flagship Jubilee Square development.
We will not forget the projects that we have paused, especially the replacement of the Fleetville Community Centre, and will return to them with renewed energy as soon as we can when the Council’s budget permits and the national construction economy improves.
Picture: an artist's impression of how Jubilee Square will look.
Media Contact: John McJannet, Principal Communications Officer, 01727 819533, john.mcjannet@stalbans.gov.uk.