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Middlesbrough Expects

Regeneration chief tells of Gresham cash hopes - Apr 7 2009 by Sandy McKenzie, Evening Gazette
The timescale to buy 1,500 homes in Middlesbrough's Gresham and embark on redevelopment could be cut if additional cash is levered in. Mayor Ray Mallon has said he is not prepared to see the demolition project "bumble along". Latest estimates are that at current funding levels it could be 2025 before all homes are bought and demolished and development secured. But Tim White, Middlesbrough Council's regeneration director, is hopeful a move now being considered to lever in extra cash will be successful. He said in dealing with some large projects councils knew exactly how much money was available and where it was coming from. "We have £500,000 in the capital programme to improve the Middlesbrough Theatre and we have designed a project around that. "With mima the council at the start made a promise to build it. It put some money in and then went to other agencies to ask for more. Eventually we got £14m and we designed agallery. "The Older Housing Strategy was different. It was unprecedented. "We had a massive problem and it was well outside the resources the council had to deal with it. "The Tees Valley councils had to persuade Government they needed extra money to tackle housing market failure. "That work bore fruit. Initially we got substantial hints we would get extra money. We did not know how much we would get but we had to put forward a comprehensive, credible and bold plan." Mr White said Middlesbrough got £15m for the period from 2008 to 2011. "But it was less than we hoped for." He said work had been going on for some time to find a new way to bring extra cash in. "This sort of project is not an exact science. We thought 1,500 houses was the right number to make a difference. It is not just about demolishing houses. It is about creating a new housing area which is fit for 21st century living. You cannot do that in small areas." He said the ABV (Asset Backed Vehicle) to generate extra cash for Gresham was not a done deal. "But if we did not have a realistic prospect of securing this we would not have brought it forward." The system would involve the council committing a big slice of cash from the sale of the Hemlington Grange site. The Government's Homes and Communities Agency would also be major contributors. "I have a high degree of confidence we can make this work," said Mr White. "The next step is to open formal discussions with the Homes and Communities Agency and within the next 12 months I hope the council will be able to make a decision on this."

Gresham cash bid to avoid 16-year wait for development - Apr 1 2009 by Sandy McKenzie, Evening Gazette
Work to redevelop Gresham would not start until 2025 under the current rate of progress. But Mayor Ray Mallon has pledged to get things moving much quicker after it was revealed available cash was only allowing the project to proceed slowly. Now moves which could speed up the buying and demolition of hundreds of terraced homes in Middlesbrough are being considered. The report to Middlesbrough Councils Executive warned, at current rates, it could be 16 years before all 1,500 homes earmarked for demolition in the Gresham and Middlehaven Wards are bought and a redevelopment scheme secured. But Ray Mallon says he is not prepared to see Gresham bumble along. Now Middlesbrough Council is to investigate the possibility of a new method of generating more cash to speed up the process. If extra cash is not forthcoming, Mr Mallon says the scheme will be looked at again. Known as an Asset Backed Vehicle, the system would include the council making a major cash contribution. That could come from the sale of land at Hemlington Grange which is earmarked for housing and employment uses and could bring in s43m. The Governments Homes and Communities Agency could also contribute cash. The areas two property-owning housing associations - Fabrick and Endeavour - could be involved and the proposal would enable loan finance to be raised. At the end of March, the council had control of 409 properties in the area to be cleared - 212 in Phase 1A, 99 in Phase 1B, 47 in Phase 2, 44 in Phase 3, and there are seven commercial premises. Tees Valley Living was awarded s50m for its housing market renewal programme from 2008 to 2011. Middlesbroughs share was s15m - s13m for buying up properties in Gresham and Middlehaven and s2m to complete buying up properties in St Hildas and North Ormesby. A further s2m is available for the Gresham and Middlehaven scheme. Middlesbrough Councils Executive was told in a report from Tim White, director of regeneration: In the current financial year the council has spent s8m of the 2008-2011 settlement. It is projected the remaining s7m earmarked for Gresham and Middlehaven clearance area is sufficient for the council to acquire the remaining properties within the entire first phase, excluding the housing association properties. However the current level of resources limits the rate of progress. At current cost and funding levels, it will be 16 years before all remaining properties can be acquired and a redevelopment scheme can be secured, stated Mr White. Mr Mallon said: This is the bottom line. We are going to try to move this along but if we get to the point where we cant get the necessary money, I will bring it back and we will look at it. I do not want the people of Gresham to go through this uncertainty for years and years. It is just not fair. Gresham councillor Ken Walker said people were now living in streets where the conditions were such that no one should be expected to live there. This report is an acknowledgement that 2025 is too far ahead to get all of the houses knocked down. The opportunity should be taken now to reassess the situation because of the economic downturn. Redcar and Cleveland Council is looking to convert and improve some terraced housing to 21st century standards, he said.