Development Partner Selection - Former Hexham Middle School Site

Northumberland County Council is the freehold owner of the former Hexham Middle School site. This 5.73-hectare site sits close to the centre of the historic market town and provides a first-class opportunity for a mixed use residential and extra care scheme in a beautiful setting. The site lies within the Hexham Conservation Area and contains the historic Grade II Listed Fellside Building.

There has been an extensive community consultation process, resulting in a preferred masterplan for development. This focused on the key needs for Hexham, which are more housing, both for sale and to include affordable housing, along with an adult extra care facility. The extra care facility will be operated by a registered provider.

The Council is seeking to appoint Development Partner(s) to finalise the design, secure implementable planning permission, construction and conversion to achieve the development scheme at the former Middle School site in Hexham. The scheme is to follow the principles set out by the Council in the various design guides that the Council has had prepared on its behalf. Development Partner(s) will be required to acquire the site and deliver the proposed scheme. The land is offered to the Development Partner(s) on terms to be agreed and the Development Partner(s) should make an offer for the land as part of the procurement process.

Tenderers will fund these schemes via their own reserves, external investors, and Homes England Affordable Homes Programme grant funding. The existing Affordable Homes Programme is ending with a new scheme due to be announced in March 2025; this may mean changes to the existing grant funding agreements which are available via the gov.uk website. We also anticipate Tenderers will apply for Adult Social Care capital and/or Section 106 developer funding in order to deliver the scheme. We will not know the percentage of grant funding until tenders are submitted but we would anticipate this will be between 30-40% of the total extra care scheme cost

It is the Council's intention to seek the views of interested parties via market engagement. We anticipate publishing market engagement on the OPEN eProcurement portal on Monday the 9th of December 2024.

The Council is moving to a new e-procurement platform and any information regarding this opportunity will be published via the portal. It is therefore recommended that interested parties register on this portal at www.open-uk.org ↗.