Councillors will discuss a minor change to the existing Better Queensway regeneration contract regarding Swan Housing Association becoming a subsidiary of Orbit Group Limited.
The existing contract is between Southend-on-Sea City Council and Swan Housing Association, and they collectively form the 50/50 joint venture partnership Porters Place LLP Southend-on-Sea.
Swan is in talks with Orbit about becoming a subsidiary of the Orbit Group and the council needs to discuss the recommendation to agree this report as a formality, so details of the new partnership between Swan and Orbit can be finalised.
Cllr Ian Gilbert, cabinet member for economic recovery, regeneration, and housing, said: “The council is fully committed to delivering the Better Queensway regeneration project. We understand the delays are frustrating, but our Joint Venture agreement will be needed to be updated in the light of the deal between Swan and Orbit.
“We believe that this change is positive as Orbit is a much larger company, but this is a multi-million-pound regeneration scheme and due diligence is needed. This is a necessary next step in the progress of this complex project, that will ultimately create 1,700 new homes and reinvent a key part of central Southend.”
Earlier this year, rising construction costs internationally slowed the project down as the council waits for a revised business plan and viability report from the project management team.
A spokesperson from Swan said: “We are in discussions with Orbit Group about a potential partnership, and this includes how we could deliver this project.
“The project team has continued to develop the scheme throughout this year. A contractor has been appointed for the demolition of the Queensway footbridge and the highways contract tenders are in the process of being evaluated. Detailed planning work on the first phase has also progressed. It is expected that the scheme will start on site in 2023.”
A spokesperson from Orbit said: “Orbit Group is very positive about the aims of the Better Queensway regeneration project and its potential to transform the centre of Southend, providing new, much needed rented, shared ownership and market sale housing.”
The report will be discussed at Shareholder Board on Tuesday 23 August and at a Special Cabinet meeting on Wednesday 24 August. The agendas for both meetings can be found on the council website.