Joint venture to deliver new homes - and revenue

Plans for a new joint venture company to deliver 55 new homes in Middleton St George will be one of a number of key issues discussed by councillors at a meeting next week.

In a report to Darlington Borough Council’s Cabinet meeting on 8 January, members will be asked to approve the establishment of a new company – Middleton St George JV Limited – between the council and Esh Homes Limited and to acquire land at Lancaster House, in the village for residential development for £1.3m.

The move comes after Esh Homes Limited was awarded the joint venture contract to develop residential framework by the council in 2017 and the success of several other developments at Eastbourne, West Park and Heighington.

The new project will see the development of 50 private and five affordable homes, to be purchased by North Star Housing, on a brownfield site around 2km to the north east of Middleton St George which was granted planning permission in December 2018.

Up to £4.7m will be invested in the scheme by the council, through prudential borrowing, with all profits split equally between the council and Esh Homes Limited. The council’s pre-tax share of the profits is expected to be £594,000.

Councillor Stephen Harker, Leader of Darlington Borough Council, said: As everyone knows, council funding from the Government has been reduced significantly over recent years and councils across the UK have had to reduce services as a result.

“However, here in Darlington we have worked hard to increase income in innovative ways to help us continue to deliver key services for local people.

“The joint venture companies we have established are a win win for everyone, as they have enabled us to build and sell, good quality new homes as well as generate much-needed additional income to help deliver a better Darlington for all.

“Our first joint venture at Eastbourne is now nearing completion and is expected to produce income of around £1m for the council – that’s money we would not have had that we can invest in services.

“The Middleton St George Joint Venture Ltd is the latest company we have established with our partners Esh Homes Limited, and will help us deliver more great things for the borough such as our plans to support the town centre. Such things are not possible unless we continue to invest and raise income in this way.”

The report to Cabinet along with a full agenda and other reports can be found here.