Medway Council's Hoo Peninsula redevelopment granted deadline extension by government
06:00, 25 April 2020
The deadline to complete a £170 million infrastructure project – including a new £63m railway station – has been extended, giving a council more time to develop its plans.
Medway Council is working on major proposals which will give capacity for 12,000 homes on the Hoo Peninsula.
The government has offered the council to expand the project's deadline by 12 months – meaning it will now have to be completed by March 2024.
New road networks and a railway station are all part of the plans which seek to "unlock potential new development" and boosting the economy in the area by developing commercial space in Kingsnorth and Grain by 2043.
Concerns have been raised about the impact of the coronavirus crisis pushing the council back and placing it under financial strain to deliver the project.
But council leader Alan Jarrett says that while it will be a "tough ask" to make sure the plans are finished in time, he is "optimistic" the council will complete the project.
Speaking during Thursday's full council meeting streamed live online, Cllr Jarrett (Con) said: "This is a really exciting phase of this project. It is a game-changer for Medway and the Hoo Peninsula.
"It deals with some issues raised by the public in Hoo many of whom are against development on a principle basis but many of whom have said to me at public meetings they can understand the need for growth if only we had the infrastructure to support it.
"It will stretch the council to its utmost in delivering and that is why we established a team whose prime function is to deliver the infrastructure fund bid.
"We still have to deliver it by 2024 which is a tough ask. But we have a track record in delivering large capital projects. We do them on time and within budget."
The authority was awarded the cash from the government last year after submitting a Housing Infrastructure Fund (HIF) bid.
Labour's Andy Stamp added the detailed report provided to councillors brought "into sharp focus a number of significant risks" but welcomed the extension of the project deadline by a year.
"The council's reserves are low and the huge bill for the coronavirus pandemic is rising by the day," he warned.
"I'm concerned the rail element exposes the council to financial liabilities as yet unexplained or quantified.
"But I sincerely hope these obstacles can be overcome because the benefits far outweigh the risks.
"It will ensure we can build sustainable communities well served by good transport, good schools, GPs and green spaces."
Cllr Adrian Gulvin (Con) said: "It's good to see a major project having the infrastructure put in first.
"I think it will reassure a lot of people who had justifiable concerns about large developments put in without, we've all seen that.
"We've now got an opportunity to plan a development properly and plan something Medway will be proud of."
Opposition councillors flagged risks associated with the project including overrunning costs falling on the council and issues it will have to front up costs at a time when finances are already under pressure.
But council papers show officers have factored in 24% "costed risk to allow for future unknowns" for all of the various projects within the overall scheme.
Officers also say the HIF project includes "provision for cost of borrowing to finance delivery of the schemes".
Cllr Naushabah Khan (Lab) said: "We've always supported the bid and funding and the contribution it will make to deliver major infrastructure and new homes.
"I wanted to flag some details – the leader picked up on delays in the start and it's a very tight turn around.
"I wonder what consideration is being given by national government – and here in Medway – as to the current crisis, which is inevitably going to have an impact on our ability to deliver in a timely way."
Cllr Jarret replied: "We have to make sure the element of risk to the council is taken in the annual refresh.
"When we get beyond the first phase – agreeing and delivering on the GDA [a legal agreement with the government about the council's responsibilities], land assembly and agreements with other landowners – Section 106 agreement streams will be significant.
"It will be done before a blade of grass is turned and concrete poured, so there's a lot of work to be done."
