Update on Roots Hall and Fossetts Farm developments

We want to see a thriving and professional football club that the city can be proud of. We know how important Southend United FC is to the city and local community. It is an important part of our identity as a place. It is an important part of our history and our future.

Over many years the council has been engaged and supportive of the plans for the developments at Roots Hall and Fossetts Farm and the move to a new stadium.

This includes in our role as the local planning authority, and also in a separate role relating to proposed housing transactions and projects at Roots Hall and Fossetts Farm. Although this would help to enable the stadium construction, it is important to be clear that the council is not involved in the financing or construction of the stadium.

The council is also not involved at all in the management of Southend United Football Club or the financial affairs of the club or any connected parties either as part of the property transactions or otherwise.

Various things have changed over recent months as the club has sought a buyer. The biggest change is that the consortium buying the club does not want to move to a new stadium at Fossetts Farm. The consortium prefer to remain and invest in the future of Roots Hall.

The council and Citizen Housing have therefore been working to take the new stadium and land at Roots Hall out of the equation with a focus on the development at Fossetts Farm where it is now proposed to include additional family housing in place of the stadium.

Cabinet met on 29 April to discuss and agree a report which updated on the transaction, and what this means for the council and the development at Fossetts Farm. It can be read on our democracy pages.

Summary of current planning position

The club has full planning permission for a new stadium and outline planning permission for the housing element. A reserved matters application has been submitted seeking full planning permission in relation to some of the housing elements.

As the proposed developments have now changed significantly, a new planning application will be needed which the council will consider through the Development Control Committee in due course. It is likely that the decision from Development Control Committee will be called in to the Secretary of State because the site includes land which is in the green belt so ultimately the Secretary of State will have the final say on whether consent should be granted or not.

Summary of proposed arrangements for Roots Hall and Fossetts

• Citizen Housing LLP seek planning permission for Fossetts Farm
• if planning permission is granted, Citizen Housing LLP will facilitate the funding of both sites. The council will not be required to invest any capital in the development of either site, but its covenant strength enables the financing of the transactions, probably by a pension investment fund
• the council will be granted long leases over around 1,260 homes at Fossetts Farm in phases as construction is completed. The two main development areas will comprise of approximately 946 apartments and around 315 houses aimed mainly at families. There will also be some small aparetment and maisonette blocks where these improve the design and environment
• the rent payable by the council to the pension investment fund will be much lower than the rents the council will receive from all the homes therefore enabling the council to benefit from a long-term sustainable income stream from the completed homes. The council will have the option to buy the freehold for £1 at the end of the various leases
• the council will arrange the management of the homes and will sublet the individual homes. Affordable homes will be capped at local housing allowance rates. The balance of homes will be at market rents for this type of ‘build to rent’ property. This will be higher than the market rents in the wider local market because of the quality and the access to local facilities.
• the council will not be involved in any development at Roots Hall, but a legal framework will ensure that contributions from Fossetts Farm go to the refurbishment and replacement of facilities at Roots Hall. Tthe sale of the football club will also be a prerequisite to the council signing up to the transactions.