A COUNCIL investment in a scheme for 161 flats at Holes Bay has been queried by BCP councillors.
Poole councillor Andy Hadley warned the authority could be “taking on a problem – not an opportunity.”
He and others have questioned whether the finances stack up although council leader Drew Mellor says the project could make the authority £41million over 50 years and help revitalise the area.
Figures before the council’s overview and scrutiny committee on Monday evening suggest the range of profit likely to be between £26m and £41m based on assumptions about maximum occupancy rates and rent levels which several councillors said were overly optimistic.
One, Cllr Marcus Andrews, a chartered surveyor, said if the scheme was so fantastic it would have been built by now. He argued that the council might be better to buy the site itself and start from scratch with its own scheme, rather than rely on a 2018 planning consent which is due to expire in November. His proposal to do so was lost on an 8-7 vote.
The Carters Quay scheme is due to go before BCP’s Cabinet on September 1 for approval – although the level of the council’s investment is being kept private.
Cllr Mellor told the meeting that the site was adjacent to the former Hamworthy power station site which the council owns and is also likely to be re-developed.
He told the meeting that with low interest rates there might never be a better time to invest with the project supporting the council’s ambitions to rejuvenate Poole.
“I’m really excited about the opportunity…it will regenerate the area and at the end of it we will own a revenue-generating asset,” he said.
“We have three sites between the bridges which are, effectively brownfield wasteland. This will massively enhance that area and deliver quality homes for Poole,” he said. The council leader said the proceeds from the development would be re-invested in the area and used to council support services.
During the debate he said that the scheme was likely to take 2 years to come to fruition, with building work starting next spring, and becoming profitable within 4-5 years.
Issues raised as concerns included the 168 car parking spaces which was considered too many; that all water heating is proposed to be by gas, contrary to expected Government policy by 2025; that none of the apartments will be ‘affordable’ and that many of the homes would overlook the Sydenham’s builders’ depot, reducing their rental potential.
There were also concerns that only the flat owners would be allowed access to the waterfront, although this was denied.
Concerns were also raised about the high occupancy levels predicted for the four ground floor commercial units, which several councillors claimed were unachievable given the level of empty shops throughout the area.
Poole councillor Andy Hadley told the meeting that it “felt odd” for the council to be investing in luxury homes.
“It feels to me that, at the last minute, we’re taking on a problem not an opportunity…there are serious issues and concerns about viability. If it was viable Inland Homes would have got on and built it themselves,” he said.
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