The Chelmsford Waterside Development, intended for around 1,100 homes, was initially planned as a joint development between the council and property developers. However, a closed-door meeting in March determined that the tender basis for the development was flawed. This decision was made despite concerns raised by the Conservative party about the process, land valuations, and the council’s potential financial losses.The Chelmsford Waterside Development, intended for around 1,100 homes, was initially planned as a joint development between the council and property developers. However, a closed-door meeting in March determined that the tender basis for the development was flawed. This decision was made despite concerns raised by the Conservative party about the process, land valuations, and the council’s potential financial losses. The council has acknowledged this flaw and has decided to restart the decision-making process. A new tender procedure will be initiated, and the council will work to gather more information and explore all options. The project involves redeveloping a former gasworks site into a new district with up to 1,100 homes. It also includes plans to enhance access to the River Chelmer and the Chelmer and Blackwater Navigation. The council has committed significant funding to the scheme, including £15.5 million in February 2020 and £11 million in December 2020. The leader of the Conservative group on Chelmsford City Council, Councillor Roy Whitehead, believes that an outright sale of the land would be a better option, as it would generate revenue for the council more quickly. He has also requested an independent valuation of the site, which he believes has increased in value due to the progress made on the access bridge and gas pressure reduction plant relocation. The council emphasizes that it is bound by guidelines set by Homes England, a government agency involved in the project. The March meeting, where the flawed decision was made, was called to meet Homes England’s deadline for certain information. The council had intended to conduct further due diligence after the meeting, which revealed the issues that led to the decision being reversed. The Chelmsford Waterside Development comprises six individual locations that will be planned as one new district. In addition to the 446 homes already approved for the peninsula, plans include 400 homes for the former gasworks, 220 homes for Lockside, 90 homes for the Baddow Road Car Park, 120 homes for the Travis Perkins site, and 35 homes for the Navigation Road sites.
The process to decide the future of a large vacant site for more than 1,000 homes in Chelmsford is to restart following legal advice.
The Chelmsford Waterside Development, which is planned for around 1,100 homes, was intended by the council as a joint development with property developers.
But at a meeting on July 17, it has now come to light that a decision was taken at an earlier closed-door meeting in March to determine that the basis for the tender for the development was flawed.
At the March meeting it was decided that a joint development was best for the council and that selling the land without planning permission would result in a lower value than was achievable.
This came despite a Conservative amendment questioning the process, as well as concerns about land valuations and worries that the council would suffer financially from the development and that a decision could be unconstitutional.
The Leader of the Opposition said an outright sale would be a better option as it would bring in revenue to the council more quickly and the sites would have to be put out to tender again.
Formerly a gasworks, Chelmer Waterside has the potential to deliver up to 1,100 new homes whilst opening up the River Chelmer and the Chelmer and Blackwater Navigation. Chelmsford Council has committed £43.6m of capital expenditure to the scheme, funded in the current financial planning by grants and the Community Infrastructure Levy.
The council approved £15.5 million in February 2020 and £11 million funded by £5.05 million CIL, £1.1 million S106 and £2.85 million additional Housing Infrastructure Fund grant in December 2020. A sum of £375,000 was approved in July 2022 for increased design fees and the appointment of a project manager and a further £16.410 million was approved by the council in July 2023.
The council is currently working on the new infrastructure required to build the new homes. This includes a new access road and bridge, relocation of gas mains and some land remediation.
Leader of the Conservative group on Chelmsford City Council, Councillor Roy Whitehead, said after a meeting on July 17: “This is going back to square one. They’ve appointed a new company to look at it again and put it out to tender properly.
“I have also requested an independent valuation of the site as it currently stands: the access bridge is being built and the gas pressure reduction plant is being relocated.
“It must be worth more.
He added: “Whether they ultimately enter into a development agreement or agree to a sale, which I believe is the case, is for them to decide.
“There are several options, but none of them were presented to the council at the March meeting.
“If it says this is what we can do – a, b and c – and we make a choice about the answers to the questions, then that’s fine.
“But if you have no choice and just say one thing that turns out to be wrong, then we are angry about that.”
He added: “A lot of money was spent pursuing a potential development deal that should not have happened if they had understood that their original tender was invalid.
“It all starts over and what we need to see are choices that the council has chosen to make. They can’t make them without the options.”
The council said after the March meeting: “Since this meeting the council has conducted further investigations and sought legal advice.
As a result, the Council has decided not to implement the decision in principle taken and instead to initiate a new tender procedure.”
Councillor Marie Goldman said at the July 17 meeting: “Homes England is involved in the Waterside project and we as a council are very reliant on their support.
“Unfortunately, because Homes England is effectively a government agency, we are bound by the guidelines they have set.
“And they set deadlines for when they need information on certain things.
“The March meeting was a special council meeting that was called because Homes England had to make a decision by 31 March, so we had to call that meeting.
“We said of course that the decision was taken on the condition that there would be a due diligence exercise afterwards, and of course that due diligence revealed a number of issues that we discovered.”
This growth location is a collection of six individual locations that are to be planned as one new district. The peninsula with 446 homes has already been approved.
In addition, 400 homes are planned for the former gasworks, 220 homes for Lockside, 90 homes for the Baddow Road Car Park, 120 new homes for the Travis Perkins site and 35 new homes for the Navigation Road sites.
