That Cabinet:

1.    provide delegated authority to the Director of Finance, in consultation with the Director of Regeneration and Cabinet Member for Place Development and Economic Growth, to award an NEC-A Design & Build contract to Willmott Dixon Construction for the redevelopment of the site, which will allow the Design Development to continue up to construction and then proceed to construction, subject to Final Business Case approval and

securing the necessary Homes England grant funding for delivery; and

2.    note that the Final Business Case for the redevelopment of the former Crossways site will be presented to Cabinet for approval on 15 July 2026, which will include the full and final build cost and associated project costs and funding breakdown (including internal capital resources, external grant secured capital receipts).

That Cabinet recommend to the Adjourned Annual Council meeting on 14 May 2026: 

1.    to use the Council powers of Appropriation for the Crossways Site and adjacent highway land as attached at Appendix 2 to the submitted report, that is no longer required for the purpose for which it is currently held and is now required for planning purposes to enable the proposed redevelopment (Redevelopment of site for residential extra care dwellings including Day Centre (Use Class E(f)), comprising a building of up to six storeys with communal facilities and cafe, associated parking, infrastructure and landscaping);

2.    authorise the Director of Regeneration to undertake all necessary steps to affect the appropriation of the Crossways site and adjacent land as identified in Appendix 2 to the submitted report for planning purposes, and delegate to Cabinet consideration of any objections and final confirmation of decision;

3.    that the Capital Programme be uplifted to a maximum of £54.000m to deliver the project; and

4.    that a maximum of £16.300m of prudential borrowing to deliver the project be approved, noting that this level of prudential borrowing is supported by rental income based on the 91 extra care units and long lease for the Day Care facility.

The proposed development is justified as a key component of the Council’s long?term market transformation strategy to meet rising adult social care demand over the next 20 years. Evidence from service users show a strong preference for independent living with greater choice and control, which extra care housing enables while delaying or reducing reliance on higher-cost residential care and improving system efficiency.  The Crossways scheme directly supports strategic priorities set out in the Adult Social Care Commissioning Blueprint, including promoting health and independence, strengthening community-based support, and delivering sustainable, modern services.  It would also contribute significantly to the Council’s target of delivering 200 additional extra care units by 2030 and fulfils commitments made under partnership arrangements to expand integrated care provision.  Despite changes to NHS partnership structures, the need for additional extra care housing remains critical to achieving better outcomes and financial sustainability.  In parallel, the proposal addresses increasing demand for specialist day services for adults with profound and multiple learning disabilities, replacing the existing Hollacombe facility which is no longer fit for purpose.  The new purpose-built centre would expand capacity, enhance the quality of care and support, provide improved opportunities for independence and wellbeing, and ensure continued support and respite for carers, thereby meeting statutory duties and improving provision for some of the most vulnerable members of the community.

The Council has been progressing plans to redevelop the Crossways site for extra care housing since 2021, supported by a series of corporate and strategic decisions, including land acquisition and approval of a revised planning application in 2025.  While this establishes a clear strategic direction, further decision points remain before committing to significant capital investment.  At this stage, three options have been considered: to proceed with delivery of the approved scheme, to withdraw from the project, or to pause pending potential market improvements.  Not progressing would reduce financial risk but forgo the opportunity to deliver much-needed housing, jeopardise grant funding, and risk reputational damage, while delaying offers no certainty of improved conditions and may increase costs or funding risks.  On balance, it is recommended that the Council proceeds with the scheme to deliver new extra care housing and a replacement day care facility.

The Cabinet’s decisions in 1 and 2 above will come into force and may be implemented on 26 May 2026 unless the call-in procedure is triggered (as set out in the Standing Orders in relation to Overview and Scrutiny).  The Cabinet’s recommendations to Council in 1 and 2 above will be considered at the adjourned annual Council meeting on 14 May 2026.

The Crossways site in Paignton was identified for redevelopment through a Compulsory Purchase Order approved in 2019, with an initial planning consent granted in 2021.  However, that scheme became unviable due to post?COVID construction cost inflation, declining property values, and the introduction of the Building Safety Act 2022, which increased costs and complexity for taller buildings.  A revised, deliverable scheme was therefore developed and approved in December 2025, comprising a six?storey, 91?unit extra care housing development alongside a purpose-built day care centre. 

This proposal responds to significant and worsening housing challenges in Torbay, including a shortage of affordable homes, reduced market delivery, high demand for social housing, and increasing need for specialist accommodation for an ageing population.  The scheme would provide 100% affordable extra care housing, replace an outdated day care facility, and support vulnerable residents to live independently for longer.  It also aligns with key strategic priorities, contributes to regeneration of Paignton town centre, and represents a major investment by the Council to address market failure, stimulate economic activity, and improve community wellbeing.

None.