A report from the Executive Director of Regeneration and Environment will be published as soon as possible. This should be read in conjunction with Report No.20 agenda part one refers. (Key decision – reference number 4497)
(This document contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person – including the authority holding that information) of Schedule 12A to the Local Government Act 1972, as amended)
(Report No.23)
Minutes:
Councillor Taylor varied the order the agenda to enable Members to consider this report immediately following their consideration of the part one report, Report No. 20, Minute No.10 above refers. The minutes reflect the order of the published agenda.
Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) introduced the report of the Executive Director of Regeneration and Environment (No.23).
NOTED
1. That Report No.20 also referred, as detailed in Minute No.10 above.
2. That the report set out the financial considerations in relation to the next stage of the estate renewal programme.
3. Councillor Lemonides outlined for Members’ attention the financial implications for each of the listed schemes and the detailed reasons set out in the report and reflected in the decisions below.
4. Councillor Oykener advised Members that a further report would be presented to a future Cabinet meeting regarding Ladderswood following the conclusion of negotiations on the aspect of the scheme as set out in paragraph 3.17 of the report.
5. In relation to decisions 1, 6 and 13 below, Councillor Taylor requested that Cabinet receive reports back on the outcomes of the proposed delegated authority actions outlined (recommendations 2.1, 2.6 and 2.13 of the report referred).
6. Councillor Edward Smith raised a number of questions with regard to the financial information provided within the report. Peter George (Assistant Director Regeneration and Environment) responded to the issues raised and outlined the programme approach being implemented, the issues relating to the individual schemes and the financial implications detailed in the report. All of the projects would be financially viable. The Council’s housing aspirations and responsibilities were highlighted. In response to further questions, Peter George outlined in detail the original business case relating to the Alma Estate project, the options that had been considered at that time, and, the proposed way forward and the financial implications as set out in the report.
7. Ray James (Executive Director of Health, Housing and Adult Social Care) highlighted the impact on the HRA Business Plan as set out in paragraphs 6.2.12 and 6.2.13 of the report. Members’ attention was drawn to the detailed risks.
8. Councillor Taylor acknowledged the issues that had been raised by Councillor Smith in discussion of the report and stated that the Cabinet would be receiving periodic reports on the progress of the Council’s estate renewal programme. Whilst the projects needed to be financially viable, it was also important to improve the quality of housing provision and ensure that properties were fit for purpose for the Borough’s residents. It was noted the 80% of those consulted on the Alma Estate project proposals had been in favour of demolition and re-build rather than refurbishment works.
9. Councillor Oykener reiterated the cost of repairs to existing properties and the need to meet decent homes standards. The safety of residents and their quality of life was paramount. The Council was proud of what was being achieved through the estate renewal programme.
Alternative Options Considered: NOTED, the alternative option considered as set out in section 4 of the report.
DECISION: The Cabinet agreed
1. To delegate authority to the Executive Director of Finance, Resources and Customer Services to monitor and review the financial implications to the Council of the housing projects that connect into the Lee Valley Heat Network, and to report back to Cabinet.
Alma
2. To delegate authority to the Executive Director of Regeneration and Environment, acting in consultation with the Executive Director of Finance, Resources and Customer Services, to enter into the relevant Supplemental Development Agreement and Phase Lease agreements as set out in the report.
3. To note the Revised Net Position to the Council was a positive of the sum detailed in recommendation 2.3 of the report, compared to the 2011 Business Case which projected a negative of the sum detailed in recommendation 2.3 of the report, an overall improvement as set out in the report.
4. To recommend to Council to approve an increase in the total budget, as set out in recommendation 2.4 of the report for vacant possession, council homes and other items detailed in the report.
5. To approve the changes to the Development Agreement contained within the Supplementary Development Agreement and Phase 1 related leases to facilitate the regeneration of the Alma Estate in accordance with the contents of the report and Report No.20, Minute No.10 above refers.
6. To delegate authority to the Executive Director of Regeneration and Environment, acting in consultation with the Executive Director of Finance, Resources and Customer Services to enter into the relevant Supplemental Development Agreement and Phase Lease documents, and to report back to Cabinet.
7. To note that work was being undertaken to examine the option of the Council purchasing shared ownership properties, as set out in recommendation 2.7 of the report, for Alma leaseholders and in the event this purchase option was recommendable, noted that a further Cabinet report would be brought forward.
New Avenue
8. To note the total value of the New Avenue scheme to the Council, as set out in recommendation 2.8 of the report.
9. To recommend to Council to approve an increase in the total budget, of the sum detailed in recommendation 2.9 of the report, for vacant possession, purchase of additional council homes and other items detailed in the report.
10. To recommend to Council to authorise, the sum detailed in recommendation 2.10 of the report, commitment to underwrite planning and design work undertaken by Countryside Properties up until the Development agreement was entered into.
Ladderswood
11. To recommend to Council to authorise an increase of the sum set out in recommendation 2.11 of the report, to the budget to finance tenant decant costs, projects costs, staffing and security costs.
12. To delegate authority to the Executive Director of Regeneration and Environment, acting in consultation with the Executive Director of Finance, Resources and Customer Services, to seek to negotiate with the developer, a Deed of Variation to the development agreement to agree an early buy out of the overage payment clause.
13. To delegate authority to the Executive Director of Regeneration and Environment, acting in consultation with the Executive Director of Finance, Resources and Customer Services the entering into a Deed of Variation to the development agreement, and to report back to Cabinet.
RECOMMENDED TO COUNCIL
Alma
1. To approve an increase in the total budget, as set out in recommendation 2.4 of the report, for vacant possession, council homes and other items detailed in the report.
New Avenue
2. To approve an increase in the total budget, of the sum detailed in recommendation 2.9 of the report, for vacant possession, purchase of additional council homes and other items detailed in the report.
3. To authorise the sum detailed in recommendation 2.10 of the report, commitment to underwrite planning and design work undertaken by Countryside Properties up until the Development agreement was entered into.
Ladderswood
4. To authorise an increase of the sum set out in recommendation 2.11 of the report, to the budget to finance tenant decant costs, projects costs, staffing and security costs.
Reason: As detailed in Report No.20, Minute No.10 above refers.
(Key decision – reference number 4497)
Supporting documents: