Agenda item - MERIDIAN WATER EMPLOYMENT APPROACH

Agenda item

MERIDIAN WATER EMPLOYMENT APPROACH

A report from the Executive Director – Place is attached. This should be read in conjunction with Report No.40, agenda part two refers. (Key decision – reference number 4717)

 (Report No.35)

(9.05 – 9.10 pm)

 

Minutes:

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director of Place (No.35)

 

NOTED

 

1.               That Report No.40 also referred as detailed in Minute No.26 below.

 

2.               That the report set out the Council’s overall Meridian Water employment approach and specific proposals in moving forward.

 

3.               Peter George (Director of Meridian Water) outlined the proposals in detail and the timescales involved. The proposed activities as set out in the report would enable the Council to achieve the aims of meanwhile uses at the site, deliver on short-term employment priorities, and pave the way to achieve the long-term employment ambitions for the project.

 

4.               The existing businesses in the area including IKEA and Tescos and the discussions which had taken place with them with the potential for future collaboration. These businesses had an important role to play in the short, medium and long-term. It was hoped that they would work with the Council in the future to achieve the overall aspirations for Meridian Water with the delivery of homes and employment.

 

5.               In conclusion, the aspirations of the Meridian Water project were reiterated with the delivery of good quality affordable housing and skilled employment opportunities. This would help to address areas of inequality.

 

Alternative Options Considered: NOTED, the alternative options considered as set out in section 4 of the report including the following:

·       Do nothing – no investment and no meanwhile projects

·       Do not continue with meanwhile projects as specified – invest more or less

·       Undertake a competitive exercise to ensure the Council was receiving best value in meeting its ambitions for Meridian Works One.

·       Lease Meridian Works meanwhile sites commercially

·       Market the opportunities at the Sheds to the market

·       Extend existing leasing arrangements for site management

·       Manage sites in-house

·       Do not purchase 4AW

·       Renegotiate price for 4AW

 

DECISION: The Cabinet agreed to

 

1.               Note the Meridian Water Employment principles described within the report, including agreeing the aims and objectives of both the short and long-term visions and priorities, and to note that the Meridian Water employment strategy would be taken to Cabinet later in 2018.

 

2.               Authorise proceeding with the short-term employment and meanwhile projects, and associated expenditure and procurement of services and work, described within the report and appendices for sites for Creative Entrepreneurs, the Sheds and Teardrop and part of the Stonehill site. This included:

 

·       Endorsing the overall approach identified by Creative Entrepreneurs, the Sheds and Teardrop site.

·       Approving Option 3 to invest £4.2m from the Meridian Water Capital budget to kickstart Meridian Works One, with the expectation that at least £2m would be recouped from 3rd parties including GLA grant in line with previous approvals of this project. This would be funded from the existing approved 2018-19 capital budget of £49.3m

·       Delegate authority to the Executive Director of Resources to approve the Business Plan of Building Bloqs, partner for Meridian Works One.

·       Endorsing pursuing the option to work with the identified commercial venue management partner to develop proposals for the Orbital Business Park Sheds and Ikea Clear Site.

·       Endorsing the option to undertake a compliant leasing exercise to secure a tenant/partner for the Teardrop and Stonehill sites that meets the objectives of the project.

·       Delegating authority to the Executive Director of Place, in consultation with the Meridian Water Programme Director, the Executive Director of Resources and the Lead Member, to make all implementation decisions within the budget and scope afforded through this report to deliver Meridian Works One and Two and Teardrop and Stonehill.

 

3.               Accept £150k of GLA development grant funding to fund a detailed feasibility study into developing a fashion manufacturing cluster as part of the proposed permanent employment hub at Meridian Water.

 

4.               Authorise marketing of leases for Stonehill and IKEA Clear to achieve the Council’s short-term employment strategy priorities and revenue target.

 

5.               Authorise tendering of the Meridian Water site and property management agent for Orbital Business Park, Phoenix Wharf and Harbet Road.

 

6.               Approve the decision to purchase 4 Antony Way at the agreed sale of price of £2m noting that the cost could be met from within the existing Meridian Water capital budget, subject to completion of Sale Contract.

 

7.               Subject to completion of sale, approve refurbishment of 4 Anthony Way, noting the allocation of £500,000 from within the existing Meridian Water capital budget for SDLT, fees and meanwhile enabling works, noting that all money spent on refurbishment would be recovered.

 

8.               Delegate authority to the Executive Director of Place in consultation with the Executive Director of Resources to authorise the completion of the sale and the procurement and award of any necessary contracts for the refurbishment proposals for the building, within the approved budget (as detailed in Report No.40, Minute No.26 below referred).

 

9.               Delegate authority to the Director of Law and Governance to approve any legal agreements as required.

 

Reason: NOTED the detailed reasons for the recommendations as set out in section 5 of the report.

(Key decision – reference number 4717)

Supporting documents: