The Salford City Mayor is to decide next week whether the council will develop between 400 and 500 homes across four sites in Ordsall by itself, or enter into a partnership with a private sector developer to deliver the scheme.
The self-delivery option is currently the preferred option recommended by Salford City Council.
Last year, the council invited expressions of interest from private sector firms to redevelop the authority-owned sites, which total 10.7 acres.
Almost 200 homes are proposed on the five-acre site of the former Ordsall District Centre north of Robert Hall Street and a further 260 on a 4.5-acre plot directly opposite.
As part of the same scheme, an additional 45 homes would be spread across two smaller sites off Ordsall Lane.
The city council sought “innovative proposals” for the delivery of a mixed-tenure development that would generate an ongoing annual revenue for the council, “rather than just generating a simple land receipt”.
In total, six bids were submitted and the council has narrowed that list to a shortlist of three.
However, financial analysis of the self-delivery option suggests it would be more cost-effective for the council to lead on the delivery of the scheme and appoint a construction firm on a design and build contract, according to a council report.
The financial review found that the council “should be able to secure a better value for money outcome through a self-delivery approach, rather than through the arrangements as set out within the bids”.
Furthermore, self-delivery, through its arm’s length housing company Dérive, would allow the council to control tenure mix within the development and access funding from Homes England and other sources, according to the authority.
For these reasons, Mayor Paul Dennett is recommended to approve the self-delivery route at the council’s property and regeneration session next week.
In 2017, LPC Living unveiled plans for a 140-home scheme at the former district centre, however, those proposals were not progressed.