Vic Allison: Development when the market fails to provide

At Wychavon we believe that local authorities can and should get involved in development projects which are beneficial to the community and which would otherwise not happen but for our involvement.

In other words, we should intervene where the market fails to find a solution rather than play the role of a profit driven developer.  That said, where we can help to facilitate a development which benefits the community, and gives a return to our taxpayers, then that is a double benefit and one we should not be ashamed of.

It is becoming increasingly clear that probably the most important role of local authorities at the moment is growing local economies and creating jobs.  And this is something that Wychavon recognises.  We have recently purchased large amounts of employment land and will make this available to new and expanding businesses.  We needed to intervene to bring these sites forward because the market failed to do so.

The council built a supermarket store several years ago which it still owns and leases to a major retailer.  This had the effect of significantly increasing foot fall into one of our towns, thereby stimulating the local economy.  We are about to do the same again in a different town within Wychavon, for very similar reasons.

Whether the balance of risks is not right to be of interest to the private sector, or whether schemes have involved land assembly involving council owned land, the council needed to and took the lead in, all these initiatives to make things happen.  In addition, the council will recoup its investment costs in these cases, whether that is through land sales or rent paid by a supermarket tenant.

We transferred our housing stock back in the mid 1990’s.  But we take our enabling role very seriously, working with our partner RSL’s to deliver innovative housing schemes which meet the needs of our communities.  We have made council land available for affordable housing developments often forgoing higher receipts generated from market housing developments.

There is one such scheme which stands out from the rest. The council owns a site in one of its towns, comprising an informal residents’ car park, church meeting room and a general store.  Built some time ago, the site is in need of redevelopment; the main buildings having become obsolete and the area subject to a considerable amount of anti-social behaviour.  The plan is to re-provide the church meeting room / community centre, a more modern store and 16 units of affordable housing above the church meeting room and store.  We have selected a developer to whom we will transfer the site.  Part of the site will then be sold to a developer for private housing and the proceeds from this will be used to develop the rest of the site.  The local RSL will buy the affordable housing units on a long lease basis, with some subsidy from the council’s housing resources.  Wychavon will buy and own the store and receive a rent as a return for its investment.

We are very excited about this scheme.  It will provide much needed affordable housing and improved community facilities.  Whilst we won’t be receiving a receipt for our land we will be receiving an income stream from the shop investment.  The more important return for the Council is the regeneration of the area.

Vic Allison is deputy managing director and s151 officer for Wychavon District Council

Photo (cropped): Elloitt Brown, Flickr