Plans to develop a “vibrant new quarter” in central Bath, previously stalled, are poised to move forward as Bath and North East Somerset Council prepares to form a limited liability partnership (LLP) to build 96 homes in the city centre.
The Bath Quays North project envisions transforming the Avon Street and Green Park Road car parks into new city blocks with pedestrianised streets, combining residential and office spaces. Initially described in 2019 by the council as “the most significant development in Bath in a generation,” the project was halted after the original developer, Legal & General, withdrew post-Covid, with no construction commencing.
Now, the council aims to take direct control of the housing element, with the cabinet scheduled to vote on November 13 to establish an LLP alongside its council-owned building company, Aequus. This partnership will spearhead the delivery of the 96 planned homes.
READ MORE: Estate Agent Geraldine White Dies Following Horse-Riding Accident
READ MORE: Sale of Yeovil Marks and Spencer Store May Have Cost Somerset Council Nearly £5 Million, Claims Councillor
According to a report before the cabinet, forming an LLP is the most efficient method advised by accountants, allowing the council to engage in a commercial entity capable of undertaking risks that the council itself might avoid.
While the council seeks a new development partner for the wider Bath Quays North project, it is prioritising the timely construction of the planned homes. In a recent collaboration, a memorandum of understanding was signed with the University of Bath to explore the site’s potential for research, innovation, and enterprise activities.
Although planning permission was granted last year for the main development on Avon Street Car Park, the LLP will focus on building homes on Green Park Road Car Park, which currently holds only outline planning consent. Aequus submitted the reserved matters planning application in January, marking a crucial step forward.
Cabinet member for built environment, housing, and sustainable development Matt McCabe emphasized the significance of this housing mix: “Aequus’s planning application is part of a mix of housing options that will help us diversify housing supply locally and include open market, affordable and social housing across B&NES. Building these homes as the first phase of Bath Quays North will help support further investment for affordable homes in later phases.”
Although the LLP is being created specifically for Bath Quays North, success could encourage similar structures for future regeneration projects. The report highlights that the LLP model is anticipated to bring additional financial benefits, furthering the council’s regeneration goals while generating measurable financial and social value.
One key advantage of using an LLP, rather than a traditional company, is that the council’s share of the profits would not be subject to corporation tax. These savings could be reinvested to support ongoing regeneration and housing initiatives.
At the upcoming meeting, the council cabinet will consider establishing the LLP and approving a loan to cover development costs. The full business case remains exempt from public disclosure due to commercial sensitivity, as permitted for such information.