North Yorkshire Council

Executive Committee

16 December 2025

Eastfield: Middle Deepdale Capital Receipts Funding

1.0       PURPOSE OF REPORT

1.1       To update Members on the historical agreement between Keepmoat developers and former Scarborough Borough Council, including the programme of capital receipts and seeking direction on the funding that remains unallocated.

2.0       SUMMARY

2.1       In 2015, Scarborough Borough Council (SBC) sold 48 acres of land at Middle Deepdale to Keepmoat Homes for £6.22 million, with staged payments intended to fund regeneration activity in Eastfield.  £3.2 million remains unallocated for capital investment.  The report recommends that this residual funding be directed through a community-led investment plan, developed in partnership with North Yorkshire Council (NYC) through the Town Investment Plan (TIP) process, ensuring projects demonstrate clear need, deliverability, and sustainability. 

3.0       BACKGROUND

3.1       In 2015, former SBC and Keepmoat Homes entered into a sale agreement relating to the disposal of land at Middle Deepdale known as HA1.  Key terms included:

· Land Disposal

SBC sold approximately 48 acres of land to Keepmoat.

· Payment Tranches

In December 2015, the Council sold its land holding to its development partner Keepmoat Homes for a purchase price of £6,220,000 – payments were to be received in stages, as the development proceeded, subject to certain conditions on percentage of affordable houses required pursuant to planning:

- Stage One – £1,525,000 upon legal completion (22 December 2015)

- Stage Two – £1,158,333 after 36 months (December 2018)

- Stage Three – £1,158,333 after 72 months (December 2021)

- Stage Four – £2,378,334 after 108 months (December 2024)

· Purpose of Receipts

The sale agreement was structured to ensure SBC captured land-value uplift for reinvestment in public realm, facilities and green spaces, preferably within the local area.  The agreement also provided for the establishment of a fund for the regeneration of the Eastfield area in Scarborough. 

3.2       Stage One receipts were used to cover the historic costs incurred by SBC in securing the consents necessary for land development and disposal of the site.  It was proposed that the later payments would be allocated to the regeneration fund.

3.3       In May 2020, former SBC approved a Community Support Package, which had been developed and endorsed by the Eastfield PACT Partnership (established in 2019, supported by SBC’s Community Regeneration Team), and in alignment with the then emerging South Scarborough Masterplan.  The programme of works, totalling £1.435 million, encompassed Stage Two of the capital receipts, and match funding from Community Led Local Development (European Structural and Investment Fund) of £212k; this programme of work was overseen by SBC’s Community Regeneration Team in conjunction with the PACT Partnership until the Partnership’s conclusion in 2025.  The Localities Team, alongside other service areas, continue to deliver on this legacy programme of work and any outstanding project commitments to draw them to a conclusion, including improvements to the High Street, and the development of the Bankside Physical Activity Hub.           

3.4       All stages of funding have now been received; £3.2 million of the capital receipts programme remains but is currently unallocated.  This funding is exclusively for capital expenditure.

4.0       PIPELINE PROJECTS

4.1       There are several priorities and/or projects that have been highlighted as potential areas of focus for the remaining capital receipts funding through various forms of consultation and engagement with the local community and key stakeholders over recent years.  A number of the following are at scoping stage:

· Phoenix Park development:  also known as Eastfield Community Park and proposed for the former Overdale School site.  Proposed features include a skate park, pump track, community building, walking trails, natural play areas, community gardens, seating and landscaping designed to support biodiversity and outdoor recreation. The park aims to become a central hub for community events, health and wellbeing activities, and environmental education.  This project is now fully costed at £2.4 million with associated Stage Three plans, completed by Align Property Services.

· Gateway Project (signage and public realm improvements):  aiming to create a more welcoming entrance to Eastfield through improved signage, wayfinding and aesthetic upgrades to key public spaces.

· Local play area upgrades:  refurbishment of ageing play equipment, installation of inclusive and accessible features, and safety improvements to encourage active play for children of all ages.  A partnership approach to this project between Eastfield Town Council and NYC Parks and Grounds is currently underway, however there is a funding gap of £106,000 for the full schedule of proposed works.

· Provision of new or improved community facilities: potential developments include a multi-use community hub, meeting space, and venue for social and youth activities, and health services outreach.

· Enhancements to The Dell green space:  The Dell is a large and historic green corridor that runs through the heart of Eastfield, offering a unique opportunity to connect neighbourhoods, promote biodiversity and support active travel.  Plans may involve ecological restoration, improved access paths, and seating to revitalise this area as a multifunctional space for recreation, nature engagement and community pride.

· Westway Boxing Club: with the support of a benefactor, Westway Boxing Club is undertaking an expansion project.  The proposed expansion will double the club’s capacity, enabling it to accommodate more young people and vulnerable adults from Eastfield.  It will create space for alternative education provision and support specialist programs like the Parkinson’s Project.  Overall, the expansion aims to transform the club into a modern, inclusive hub that fosters opportunity, resilience, and community cohesion.  There is currently a capital funding gap on the project which the Club have been actively seeking external funding for.

5.0       TOWN INVESTMENT PLAN

5.1       The Localities Team has been supporting colleagues from Regeneration on developing the TIP programme, a co-ordinated approach to regeneration and investment across the county.  In winter 2025/26, Localities (supported by Regeneration) will be commencing the development of the TIP in Eastfield and Cayton, focussing on:

· Revitalising high streets and town centres

· Improving transport and travel options

· Regenerating cultural and heritage assets

· Creating new workspaces

· Addressing health inequalities and social challenges

5.2       The development of the TIP will be rooted in strong community engagement principles, and evidence-based planning, providing a strong platform for any potential forthcoming investment.  The TIP for Eastfield and Cayton is due to be completed by no later than March 2027.

6.0       OPTIONS FOR THE ALLOCATION OF REMAINING CAPITAL RECEIPTS FUNDING

6.1       As of 31 March 2025, a total of £1,958,568 had been spent.  There are a number of outstanding legacy commitments where funding has been agreed, including improvements to the High Street, Bankside Physical Activity Hub (including Multi-Use Games Area), St George’s Primary School Playzone, upgrades to More Than Books (Community Library), and the former Overdale School demolition and associated fees, totalling c £1.1 million.  There is therefore c £3.2 million remaining unallocated in the capital receipts reserve.   

6.2       Acknowledging that the residual capital receipts funding is a finite resource, it is paramount that allocation of this funding delivers measurable impact in line with the needs of the Eastfield community, in the spirit of the original agreement set out between former SBC and Keepmoat Homes.

6.3       Following the conclusion of the Pact Programme, discussions did commence in May 2025 on how this partnership arrangement could potentially evolve and be encompassed with the NYC Community Partnerships programme.  Discussions are however currently paused, and there are no local formal or informal partnership arrangements in place at present, where key stakeholders can collectively discuss local priorities, or explore the challenges and opportunities for the local community.  That said, there are several key active partners in the area including Eastfield Town Council, Phoenix Park CIO, Eastfield Community Association and a number of voluntary and community sector groups delivering activities and/or services on the estate.  Eastfield is also in close proximity to expanding business parks, creating scope for building on engagement with the private sector and local businesses.

6.4       It is therefore recommended that the allocation of the remaining funds of £3.2 million is steered by the local community in partnership with NYC who, together, develop a coordinated and cohesive, community-led investment plan.  The plan should include both robust business cases and the identification of the best placed delivery organisation for each project (this could include NYC as well as local organisations). The community will have up to 15 months to formulate and submit this unified plan for NYC’s Executive approval, which is proposed to dovetail with, and form part of the TIP. 

6.5       NYC Localities Team, working with the Regeneration Team, will provide capacity and capability building support as required for the development of the community led investment plan via the TIP development process, however there will be no mandated arrangements for the governance and decision making at place.  It is envisaged that the TIP will be adopted by the local community once complete, held by an existing body or partnership identified through the development process.  It is recognised that the development of this plan will also require the input, expertise, and commitment of key service areas across NYC, anticipated to include Highways, Property, and Parks and Grounds.  The role of the local Elected Member will also be pivotal in terms of community leadership and providing valuable place-based knowledge and insight.

6.6       Each project in the community’s investment plan must include a business case.  Each business case should demonstrate clear evidence of need and community engagement, deliverability, long term financial sustainability, cost estimates and maintenance implications.  All proposed expenditure must be capital in nature, as the funding is restricted to capital investment only.  Eligible capital projects may include (but not limited to) the acquisition, construction, improvement or refurbishment of physical assets such as buildings, parks, play areas, signage, access paths, landscaping, and equipment.  Revenue costs such as staffing, programming, maintenance, or consumables will not be permitted.

6.7       If no compliant plan and business cases are submitted within the 15-month period, NYC reserves the right to allocate the funds at its discretion to meet strategic priorities and needs.

7.0       CONSULTATION UNDERTAKEN

7.1       Various consultations and engagement exercises have been undertaken in recent years.  This has included:

· Identification of need through the engagement associated with the development of the South Scarborough Masterplan, and activity of the former Pact partnership Eastfield Residents Association, and Eastfield Town Council.

· Feasibility work associated with the potential development of Phoenix Park, which incorporated community engagement activity. 

· On-going strategic engagement through the Phoenix Park Project Steering Group, and initial exploratory conversations with local stakeholders associated with the potential development of a Community Partnership.

7.2       As outlined in Section 5.2, the development of the TIP will be rooted in strong community engagement principles, and evidence-based planning, providing a strong platform for any potential forthcoming investment.  It is proposed that the allocation of the remaining funds of £3.2 million is steered by the local community in partnership with NYC who, together, develop a coordinated and cohesive, community-led investment plan, as part of the TIP development process.

8.0       CONTRIBUTION TO COUNCIL PRIORITIES

8.1       The proposals set out within this report and the intention to support the development of a community led investment plan as part of the TIP process, will contribute to the following Council Plan priorities, particularly focussing on community wellbeing, regeneration, and environmental improvements and sustainability.

9.0       ALTERNATIVE OPTIONS

9.1       There are no alternative options for consideration.  In keeping with the spirit of the original agreement set out by former SBC and Keepmoat Homes, and the high levels of community expectation in relation to this funding, it is determined that the proposals set out in this report is the only option available.

10.0     FINANCIAL IMPLICATIONS

10.1     All stages of funding outlined in Section 3.1 have now been received from Keepmoat Homes; £3.2 million of the capital receipts programme remains but is currently unallocated.  This funding is exclusively for capital expenditure. 

11.0     LEGAL IMPLICATIONS

11.1     The sale agreement outlined in 3.1 was entered into in on 30 November 2015.  As outlined above, it was intended that the deferred payments would be allocated towards the achievement of regeneration objectives in the Eastfield area of Scarborough. 

12.0     EQUALITIES IMPLICATIONS

12.1    No implications anticipated. Equalities Impact Assessment Screening Form attached at Appendix 1.

13.0     CLIMATE CHANGE IMPLICATIONS

13.1     No implications anticipated.  Climate Change Impact Assessment Screening attached at Appendix 2.

14.0     REASONS FOR RECOMMENDATIONS

14.0     There is £3.2million residual capital receipts funding currently unallocated; the recommendation aligns with the spirit of the original agreement set out between former Scarborough Borough Council and Keepmoat Homes, and NYC’s commitment to local engagement and empowerment outlined in the TIP development process.  

15.0     RECOMMENDATIONS

i) Members approve up to a 15-month period for the Eastfield community to develop and submit a coordinated investment plan (including robust business cases) as part of the TIP development process and instruct NYC Officers to support any community driven arrangements and plan development as required.  This includes the development of appropriate criteria against which such business cases will be assessed and awarded, to ensure fairness, transparency and the best use of the remaining capital receipts.

ii) Note the fallback clause allowing NYC to reallocate funds if no plan materialises by March 2027.

APPENDICES

Appendix 1 – Equalities Impact Assessment Screening Form

Appendix 2 – Climate Change Impact Assessment Screening

BACKGROUND DOCUMENTS

Scarborough Borough Council Cabinet Report – Eastfield Regeneration Programme – May 2020

South Scarborough Masterplan – 2019

BDP – Community Park report – July 2024

HA1 Contract for Sale – Middle Deepdale – October 2015

Rachel Joyce

Assistant Chief Executive Local Engagement

Report author:  Marie-Ann Jackson, Head of Localities

Appendix 1 – Equality Impact Assessment Screening Form

Initial equality impact assessment screening form This form records an equality screening process to determine the relevance of equality to a proposal, and a decision whether or not a full EIA would be appropriate or proportionate.
Directorate	Local Engagement
Service area	Localities
Proposal being screened	Eastfield: Middle Deepdale Capital Receipts Funding
Officer carrying out screening	Marie-Ann Jackson
What are you proposing to do?	To develop a cohesive and robust community led investment plan, in order to allocate residual capital receipts funding
Why are you proposing this? What are the desired outcomes?	Aligned with a 10-year agreement set out between Scarborough Council and Keepmoat Developes in November 2015
Does the proposal involve a significant commitment or removal of resources? Please give details	No
Impact on people with any of the following protected characteristics as defined by the Equality Act 2010, or NYC’s additional agreed characteristics As part of this assessment, please consider the following questions: · To what extent is this service used by particular groups of people with protected characteristics? · Does the proposal relate to functions that previous consultation has identified as important? · Do different groups have different needs or experiences in the area the proposal relates to? If for any characteristic it is considered that there is likely to be an adverse impact or you have ticked ‘Don’t know/no info available’, then a full EIA should be carried out where this is proportionate. You are advised to speak to your directorate representative for advice if you are in any doubt.
Protected characteristic		Potential for adverse impact			Don’t know/No info available
		Yes	No
Age			ü
Disability			ü
Sex			ü
Race			ü
Sexual orientation			ü
Gender reassignment			ü
Religion or belief			ü
Pregnancy or maternity			ü
Marriage or civil partnership			ü
People in rural areas			ü
People on a low income			ü
Carer (unpaid family or friend)			ü
Are from the Armed Forces Community			ü
Does the proposal relate to an area where there are known inequalities/probable impacts (for example, disabled people’s access to public transport)? Please give details		The allocation of this capital funding should support a geographical area of deprivation, and those with protected characteristics residing and working there.
Will the proposal have a significant effect on how other organisations operate? (for example, partners, funding criteria, etc.). Do any of these organisations support people with protected characteristics? Please explain why you have reached this conclusion.		N/A
Decision (Please tick one option)		EIA not relevant or proportionate:		ü		Continue to full EIA:	x
Reason for decision		No adverse impact anticipated
Signed (Assistant Director or equivalent)		Rachel Joyce
Date		2 December 2025

Appendix 2 – Climate Change Impact Assessment Screening

Initial Climate Change Impact Assessment (Form created August 2021) 

The intention of this document is to help the council to gain an initial understanding of the impact of a project or decision on the environment. This document should be completed in consultation with the supporting guidance. Dependent on this initial assessment you may need to go on to complete a full Climate Change Impact Assessment. The final document will be published as part of the decision-making process. 

If you have any additional queries, which are not covered by the guidance please email climatechange@northyorks.gov.uk

Title of proposal	Eastfield: Middle Deepdale Capital Receipts Funding
Brief description of proposal	Approval of an up to 15-month period for the Eastfield community to develop and submit a coordinated investment plan (including robust business cases) for residual capital receipts funding (£3.2 million) as part of the TIP development process.
Directorate	Local Engagement
Service area	Localities
Lead officer	Marie-Ann Jackson
Names and roles of other people involved in carrying out the impact assessment	Marie-Ann Jackson, Head of Localities  Adele Wilson-Hope, Communities Area Manager (East)

The chart below contains the main environmental factors to consider in your initial assessment – choose the appropriate option from the drop-down list for each one.

Remember to think about the following:

· Travel

· Construction

· Data storage

· Use of buildings

· Change of land use

· Opportunities for recycling and reuse

Environmental factor to consider	For the council	For the county	Overall
Greenhouse gas emissions	No effect on emissions	No Effect on emissions	No effect on emissions
Waste	No effect on waste	No effect on waste	No effect on waste
Water use	No effect on water usage	No effect on water usage	No effect on water usage
Pollution (air, land, water, noise, light)	No effect on pollution	No effect on pollution	No effect on pollution
Resilience to adverse weather/climate events (flooding, drought etc)	No effect on resilience	No effect on resilience	No effect on resilience
Ecological effects (biodiversity, loss of habitat etc)	No effect on ecology	No effect on ecology	No effect on ecology
Heritage and landscape	No effect on heritage and landscape	No effect on heritage and landscape	No effect on heritage and landscape

If any of these factors are likely to result in a negative or positive environmental impact then a full climate change impact assessment will be required. It is important that we capture information about both positive and negative impacts to aid the council in calculating its carbon footprint and environmental impact.

Decision (Please tick one option)	Full CCIA not relevant or proportionate:	x	Continue to full CCIA:
Reason for decision	No positive or adverse impacts anticipated.
Signed (Assistant Director or equivalent)	Rachel Joyce Assistant Chief Executive – Local Engagement
Date	2 December 2025