A Dundee City Council scheme to build 75 flats for rent is set to preserve a future for a striking symbol of the city’s industrial past.
The council is teaming up with local developer Keiller Estates and the Scottish Government’s national housing trust (NHT) to transform the site of the former William Halley & Sons premises at Wallace Craigie Works on Broughty Ferry Road.
The council is planning to borrow £7.175 million to back the development, but it is not facing any financial risk as the government will underwrite the loan.
Housing convener Jimmy Black said: ”These new flats will fill a gap for mid-market rented housing in the city. They will provide another option for people looking for rented property which within five to 10 years could be available for them to buy.
”Under the rules of the NHT scheme, when the flats are sold, either to their tenants, to a registered social landlord or on the open market, the money generated will be used to repay the council.”
Surpluses will go first to the developer to give them a return on their investment and then to the council and the Scottish Government.
”This creates a winning situation for everyone involved,” Mr Black said.
Keiller Estates already has pre-planning approval for the flats, and the company is in talks with the council over gaining full planning permission.
The NHT was developed by the Scottish Government to increase the supply of affordable housing. Properties are let on short assured tenancies at mid-market rents affordable to households on annual incomes of £15,000-£25,000.
Council housing director Elaine Zwirlein said: ”Properties provided under the scheme will assist those who are not likely to be housed through social rented housing waiting lists and assist those who cannot obtain mortgages due to the levels of deposits required by lenders.”
She continued: ”A managing agent appointed by the developer is responsible for allocations, housing management and providing the repairs service.”
Caledonia Housing Association is in line to be the agent for the Wallace Craigie Works scheme.
The mill was built in 1836 and boomed during the American Civil War in the 1860s when a shortage of cotton boosted the jute industry. The disused site now has capacity for around 170 homes, most of which will be for sale.
Ms Zwirlein said: ”As well as providing quality, affordable mid-market rented housing the development of the site will enhance the neighbourhood.”
Councillors will be asked to approve the funding package at a meeting of the housing committee next week.
Also on the agenda will be tenders valued at just over £7 million that will see improvements made to council houses across the city.
More than 250 properties will have their existing electric heating replaced with gas, and dozens more will have boilers replaced.
More than 1,000 properties will have their kitchens and bathrooms renewed.
Mr Black said: ”This investment in houses from Douglas to Dudhope and Caird Avenue to Camperdown will help us to bring more of our stock up to the Scottish housing quality standard that we must meet by 2015.
”The quality of life of tenants will be dramatically improved by this investment as they enjoy modern kitchens and bathrooms and clean, efficient heating systems.”
Demolition work necessary to allow the second phase of the redevelopment of the Mill o’ Mains estate is also due to be approved by councillors.
”It will cost £300,000 to pull down 61 flats and 14 lock-up garages.
Mr Black said: ”With houses in the first part of the redevelopment already built and occupied by a group of satisfied tenants, our partnership with Home Scotland is breathing new life into this part of the city.”
Construction of replacement homes is expected to start in the autumn.