Agenda item - Meridian Water Update

Agenda item

Meridian Water Update

To receive a report from the Executive Director of Regeneration and Environment.

 

This report should also be read in conjunction with the report on the part 2 agenda.                                                                   (Key Decision:  4241)

Minutes:

Councillor Alan Sitkin (Cabinet Member for Economic Regeneration and Business Development) introduced the report of the Executive Director of Regeneration and Environment (No.80).

 

NOTED

 

1.               That Report No.81 and 81A also referred as detailed in Minute No.10 below.

 

2.               That the preferred bidder for the Meridian Water Regeneration Scheme, Barratt formally withdrew their bid on 25 October 2017. Members noted the consequent termination of negotiations with Barratt and the requirement to proceed to open negotiations with the Reserve Bidder, PCPD.

 

3.               That a recent meeting of the Overview and Scrutiny Committee had received and considered a Meridian Water update and, a number of the issues being discussed this evening had previously been raised at the Scrutiny meeting.

 

4.               Councillor Ahmet Oykener (Cabinet Member for Housing and Housing Regeneration) reminded Members that in 2015 the Council had begun a process to find a partner who could deliver its vision for Meridian Water. A partner who shared the Council’s commitment to: the delivery of over 8,000 mixed tenure homes; over 3,000 high quality jobs; and, the creation of a whole new neighbourhood with all of the essential facilities and parks in a quality setting. In 2016, the Council found a partner whose bid exceeded this – 10,000 homes and 6,700 new jobs. However, in summer 2017 it had become clear that the preferred bidder was no longer prepared to meet their original bid commitments. The Council remained committed to its ambitions for Meridian Water.

 

5.               Councillor Oykener outlined the progress which had been made to date with regard to land purchases; Network Rail; planning permission; and, remediation works. The Council would continue to seek to work with the private sector in order to deliver the required outcomes for the Borough.

 

6.               Councillor Oykener outlined the way forward with regard to the Council’s reserve bidder and the processes that would now be followed in order to seek to deliver the Meridian Water development. The time delay that had been experienced through the negotiations with the preferred bidder was highlighted. Councillor Oykener commended the report and its recommendations to the Cabinet.

 

7.               In conclusion of the discussion on the part one report, Members agreed the recommendations set out in the decisions below and continued their discussion in part two, Minute No.10 below referred.

 

Alternative Options Considered: As detailed in the super part 2 report (Report No.81A), Minute No. 10 below refers.

 

DECISION: The Cabinet agreed to

 

1.               Note that Barratt had formally withdrawn as the preferred bidder for the Meridian Water Regeneration Scheme and that negotiations with Barratt to finalise the terms of the Master Developer Framework Agreement (MDFA) had therefore terminated.

 

2.               Note that in accordance with the recommendations of the Cabinet meeting of 18 May 2016 (KD 4241) which had confirmed the selection of Bidder C (being PCPD) as the Reserve Bidder, PCPD be approached to open negotiations with a view (subject to agreeing terms) to PCPD being appointed as Master Developer.

 

3.               Delegate authority to officers to commence and progress financial and commercial negotiations with PCPD on the basis set out in the letter attached at Appendix 1 (attached to Report No.81A).

 

4.               Note that in the event that a satisfactory financial and commercial commitment could be agreed with PCPD then the decision to approve the award of the MDFA to PCPD on the terms of the commitment would be referred back to Cabinet for approval.

 

5.               Note that in the event that a satisfactory financial and commercial commitment could not be agreed with PCPD, the decision to terminate negotiations with Bidder C would be referred back to Cabinet for approval.

 

Reason: As detailed in the super part 2 report (Report No.81A), Minute No. 10 below refers.

(Key decision – reference number 4241)

Supporting documents: