New riverfront community to be created in CardiffCardiff Council has unveiled new plans to turn a derelict Cardiff estate into a prospering attractive riverfront community.
The new estate will be situated on Dumballs Road and will include around 1,500 new homes of which half will be affordable. The new riverfront community project is expected to create around 3,000 construction jobs and after completion it is expected that 500 long-term jobs will remain. The plans also include community facilities, Greenland as well as infrastructure improvements.
Currently the 33-acre site is occupied by garages and other industrial units, but developer Bellerophon has managed to secure 56.8% of the land with aims to increase this to 82.3% by the end of 2013. Many businesses situated near within the estate will need to be relocated, something Cardiff Council has been asked to do with their Compulsory Purchase Order (CPO) powers if necessary.
How the new riverfront development will be funded
How the new development plans are going to be funded has been a major issue throughout the community for a couple of weeks now. However, the Labour cabinet has announced that the project will be funded through a pension fund in return for a long-term income stream. This means that a housing provider will underwrite the fund through a head lease.
For this development the housing provider will be the council who will take on 775 units on a 40-45 year lease, with plans for the council to take control of the houses once the lease has ended. The news of how the project is going to be funded failed to mention any cost of the lease to taxpayers which may cause some concern throughout the community.
This new ownership model is being called innovative by the Labour Cabinet. Lynda Thorne, Cabinet member for housing said:
“This model is a new and innovative approach to the delivery of much needed affordable housing in an excellent central location. The council will fully consider the opportunities that the model presents and will bring forward a further report on this aspect of the scheme in the near future”.
The news will once again bolster Cardiff’s growing portfolio of redevelopments, with developments in Cardiff Bay and the City Centre featuring heavily. Cardiff Council recently approved Cardiff’s ‘gateway to Wales’ plans which are aimed at improving the area situated around Cardiff Central train station and the Millennium Stadium.
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