Agenda item

A report from the Executive Director of Regeneration and Environment will be circulated as soon as possible. (Report No.264, agenda part two also refers). (Key decision – reference number 4442)

(Report No.263)

(6.35 – 6.40 pm)

TO FOLLOW

Councillor Doug Taylor (Leader of the Council) introduced the report of the Executive Director of Regeneration and Environment (No.263) and invited Peter George (Assistant Director – Regeneration and Environment) to present the report to the Cabinet.

NOTED

1.               That Report No.264 also referred as detailed in Minute No.13 below.

2.               That approval was being sought to the Agreement for Sale and authorisation to exchange contracts and complete purchase of two sites in Meridian Water comprising c.13 hectares (c.32 acres) subject to approval of the overall viability of the Meridian Water scheme. The report set out the reasons for the recommendation and the regeneration benefits of proceeding with the acquisition.

3.               The excellent progress that the Council had made to date in land assembly at Meridian Water, as detailed in section 3.2 of the report. The acquisition of the land in question would take the total land holdings in Council ownership up to c.87 acres (c.35 hectares) or c.64% of the developable land in Meridian Water.

4.               Peter George outlined in detail the background to the recommendations and the proposed way ahead including the anticipated development on the sites; and, the vision for job creation and employment opportunities, as set out in full in section 3 of the report. Barratt London had previously been approved as the preferred master developer; contracts were due to be concluded in the near future. The proposed development on this part of Meridian Water consisted of two main elements: the e-commerce building and residential-led mixed use development. The proposals would seek significant job creation in the area. The e-commerce centre, as explained within the report, would be the first significant step for Barratt London (with SEGRO) on delivering on its commitment to provide 6,700 jobs, a number of which would be high salaried positions.

5.               The detailed overall employment proposals as part of the Meridian Water site as set out in section 3 of the report together with the anticipated timeframe.

6.               The valuation processes which had been carried out to date, with two independent valuations having been sought, as set out in the report and explained to Members in detail. The report was seeking approval for exchange and completion of the purchase of both the Stonehill and Hastingwood sites subject to confirmation of the overall viability of the Meridian Water scheme.

7.               The status of the land in question and the potential income generation from the sites was noted. The Stonehill site was currently held as Strategic Industrial Land (SIL) with a restrictive planning designation presently in place which did not support residential development. However, Members were advised of ongoing discussions and proposals currently under consideration. Peter George explained to Members the basis on which the Council was proposing to purchase the sites. He outlined the due diligence work which had been undertaken to date and, the further financial due diligence that was being carried out to confirm the overall viability of the proposals, as detailed in recommendation 2.1 of the report. Members were advised of the financial implications of the proposals and the options in the future.

8.               In relation to the Council’s acquisition strategy, it was noted that this negotiated settlement was another example of the Council securing control of land through negotiated methods. The alternative options considered, as set out in section 4 of the report were noted, including private treaty acquisition at a later date; compulsory acquisition; and, the option of buying in ten years’ time. Members noted the restrictions on seeking compulsory acquisition. Members were advised that an Area Action Plan for the area in question had not yet been adopted and, the contract with the Master Developer was still to be concluded; both of which would restrict the current use of a compulsory purchase order.

9.               In response to issues raised by Members, the proposed timescales and reasons for purchasing the sites at this time was outlined in detail. The Stonehill site was currently vacant and not income-producing and therefore if the Seller did not sell now they were very likely to commit to proceeding with their development proposals, section 4.2 of the report referred. The potential implications of delaying the purchase were noted.

10.           The property implications, section 6.3 of the report referred, and that the Council had fully complied with due process requirements. In response to issues raised, the Council’s contractual relationship with Barratt London as the preferred master developer and the secondary relationship with SEGRO were outlined.

11.           The need to conclude the acquisition without further delay for the reasons set out in the report and discussed in full by Members.

12.           In conclusion, Councillor Sitkin reiterated that the acquisition of the land in question was within the overall Meridian Water development plan, as previously approved by Members. However, the opportunity to acquire the land had arisen earlier than had originally been anticipated. The part two report (as detailed in Minute No.13 below) set out a recommendation to full Council to increase the capital programme for 2017/2018 in order to enable acquisition of the land in question to proceed at this time, for the reasons set out in the report.

Alternative Options Considered: NOTED, the detailed alternative options that had been considered as set out in section 4 of the report including: Private treaty acquisition at a later date; compulsory acquisition and, option of buying in ten years’ time.

DECISION: The Cabinet, subject to the agreement of the part two report detailed in Minute No.13 below:

1.               Noted that the decisions were subject to the demonstration of overall viability of the Meridian Water scheme. Cabinet agreed that authority to approve the overall viability be delegated to the Cabinet Member for Economic Regeneration and Business Development and the Cabinet Member for Finance and Efficiency in consultation with the Executive Director of Regeneration and Environment and Executive Director of Finance, Resources and Customer Services. Subject to confirmation of overall viability, the report recommended the following decisions.

2.               Agreed to approve the terms of the sale as set out in the Agreement for Sale and associated legal documents (appended to the part two report, Minute No.13 below referred) for the purchase of two sites in the east of Meridian Water Regeneration Area: a 10 hectare (24.5 acre) site known as Stonehill Estate (Stonehill) and a 3 hectare (c. 7.3 acres) site known as Hastingwood Estate (Hastingwood) (the Sites) complete the acquisition in accordance with the terms set out in the Agreement for Sale and associated legal documents (appended to the part two report, Minute No.13 below referred) and subject to approval of overall viability of the Meridian Water scheme.

3.               Agreed to authorise the Assistant Director of Legal and Governance in consultation with the Assistant Director of Regeneration and Planning, and the Assistant Director of Property to complete the legal requirements to enable entering into the Conditional Agreement for Sale and exchange and complete contracts subject to approval of overall viability of the Meridian Water scheme.

4.               Noted that the recommendations for approval of all expenditure associated with the purchase of the Sites could be found in the part two report; Minute No.13 below referred.

Reasons: The detailed reasons were set out in section 5 of the report and listed below:

·       The acquisition of the Sites would enable the Council to exercise control over a key plot of the land within the Meridian Water Masterplan area, which would help accelerate housing delivery.

·       To provide a greater level of certainty over the timescales associated with the development of Meridian Water and to increase developer and stakeholder confidence in the delivery of the Masterplan.

·       The purchase of the Sites would underpin the delivery of the Meridian Water Housing Zone and this land could support a mixed use development at a later date, including providing the land for c. 2,200 homes, subject to the adoption of the current proposed submission Edmonton Leeside Area Action Plan.

·       To provide an important opportunity to bring forward both meanwhile and permanent development that could begin to release the economic potential of Meridian Water, create jobs and spearhead investment in the area. The e-commerce centre proposed for the northern part of Stonehill could be brought forward at a very early stage creating over 1,000 new jobs and proving a major catalyst for economic regeneration in this part of the borough.

(Key decision – reference number 4442)