Borough of Scarborough JV Partnership

Tender description

Scarborough Borough Council (the “Council”) is committed to increasing the quantum and quality of affordable homes across the Borough. It is therefore seeking a strategic development partner for 30 years to fund, enable, develop, and undertake sales activity across a programme of sites within the Borough, via a 50:50 corporate joint venture (“JV”) arrangement. The JV’s purpose will be to deliver good quality and environmentally sustainable homes, with a focus on accelerating the provision of affordable housing and generating social value. The Council is proposing 8 Initial Sites from its landholdings portfolio to be committed to the JV from the outset and it may deliver additional Council owned sites through the partnership over its lifetime. The JV could also purchase its own sites from a third party or the JV partner could offer sites to the JV. Lot 1: The Council is committed to increasing the quantum and quality of affordable homes across the Borough. It is therefore seeking a strategic development partner for 30 years to fund, enable, develop, and undertake sales activity across a programme of sites within the Borough via a 50:50 corporate JV arrangement. The JV’s purpose will be to deliver good quality and environmentally sustainable homes, with a focus on accelerating the provision of affordable housing and generating social value. The Council is proposing 8 Initial Sites from its landholdings portfolio to be committed to the JV from the outset (the ‘Category A’ and Category B’ sites) and it may deliver additional Council owned sites through the partnership over its lifetime (the ‘Category C’ sites). The JV could also purchase its own sites from a third party or the JV partner could offer sites to the JV (the ‘Category D’ sites). For further information on the initial and further sites, and the approach to their investment/acquisition please refer to the draft procurement documents being released at this stage (specifically the draft Invitation to Submit Detailed Solutions (“ISDS”), which includes Key Principles and draft Contracts, and the Descriptive Document). The estimated contract value of this opportunity is between 130 000 000 GBP and 3.9bn GBP and is based on the estimated gross development value for the 8 Initial Sites (‘Category A’ and ‘Category B’ sites) and a reasonable forecast for any ‘Category C’ and ‘Category D’ sites that may be delivered by the JV during the term of the Contracts. The range is broken down as follows: the estimated gross development value for the 8 Initial Sites (‘Category A’ and ‘Category B’ sites) is between 130 000 000 GBP and 160 000 000 GBP; the estimated gross development value for ‘Category C’ sites within the existing geographical area of the Council and ‘Category D’ sites that the JV purchases from a third party or where the JV partner offers sites to the JV is between is between 575 000 000 GBP and 775 000 000 GBP; and the estimated gross development value for ‘Category C’ and ‘Category D’ sites within the geographical area of the Council’s successor is between 2.8bn GBP and 3.9bn GBP. On 22 July 2021 the Secretary of State for Housing, Communities & Local Government announced, subject to Parliamentary approval, a local government reorganisation for North Yorkshire which will create a single unitary for the whole of the administrative county of North Yorkshire. It is currently understood that the Secretary of State intends around the turn of the year to lay before Parliament the draft Orders which, if approved by Parliament, will give effect to the decision, leading to elections for the unitary council in May 2022 and for the council to be fully up and running from April 2023. It is therefore currently anticipated that, in the event the decision is approved, the relevant Contracts will be entered into by the Council and then they may be novated and/or partnership interest transferred to (as appropriate) the successor body to the Council. All references in this Contract Notice to the Council or its area include, where appropriate and unless the context requires otherwise, references to the Council’s successor. All references to the Borough are to the geographical area of the Council or the geographical area of the Council’s successor. Further details of this opportunity are set out in the procurement documents. Please see Section V1.3 for details relating to the procurement documents being released at this stage. Additional information: The procurement will be conducted in accordance with the Public Contracts Regulations 2015 as amended, and successor legislation which may follow, using the competitive dialogue procedure as set out in Regulation 30 of the Public Contract Regulations 2015.