That Council be recommended to:

1.    Approve the inclusion of the full St. Kilda’s scheme (including the addition of demolition of the former Care Home and the construction of 23 no. new age-restricted flats for social housing) in Torbay Council’s Capital Programme.

2.    Increase the capital programme for the St Kilda’s scheme to a total sum of £5,683,164 to include costs already incurred and the costs of demolition and construction as set out in Exempt Appendix 1.

3. Approve up to £2,667,058 of prudential borrowing funded from rent receipts, net of the costs of maintenance and management of the completed scheme.

That subject to 1 to 3 above the Cabinet:

4.    In accordance with Financial Regulations, the Director of Finance be instructed to bid for (and accept) any applicable affordable housing grant from Homes England to support the scheme, subject to securing at least the Minimum Grant Level as set out in Exempt Appendix 1 for the scheme to proceed.

5.    Delegate authority to the Director of Pride in Place to award a suitable contract for construction to Bidder A for the Total Contract Sum(s) identified in Exempt Appendix 1 (including any Stage 1 contract for demolition/site clearance and Stage 2 contract for main works, as necessary), along with all necessary external support services required for successful delivery of the scheme following completion of successful procurement exercises (and associated due diligence).  Subject to any Stage 2 contract/contract for main Works not to be signed until Homes England have confirmed that the Minimum Grant Level set out in Exempt Appendix 1 has been secured, and a Grant Agreement signed accordingly.

6.    Delegate authority to the Director of Pride in Place, in consultation with the Head of Legal Services, to enter a Building License with TorVista Homes, to enable demolition to take place prior to formal transfer of the asset back to the Council (if necessary).

7.   Authorise the Director of Pride in Place to enable all management provisions required for successful operation of the scheme, in accordance with the planning consent and requirements of the Regulator or Social Housing.