Agenda item

A report from the Executive Director – Place is attached. (Report No.216, agenda part two also refers) (Key decision – reference number 4864)

(Report No.213)

(7.40 – 7.50 pm)

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director – Place (No.213) seeking approval to enter into a development agreement with the highest scoring bidder to develop the site in accordance with the terms of the procurement.

NOTED

1.            That Report No.216 also referred as detailed in Minute No.15 below.

2.            The background to the proposals as outlined in the report. In July 2018 the Cabinet had agreed to bring forward three early sites from the Meridian Water project for development. The first of these three sites was Phase 1 at Willoughby Lane which already had the benefit of an outline planning consent for 725 residential units.

3.            That Cabinet had agreed to the procurement of developers to deliver Meridian One using the London Development Panel. The report detailed the procurement processes followed and the results of the evaluation. The report recommended that the Council enter into a Development Agreement with the highest scoring bidder to develop the site in accordance with the terms of the procurement. The specific requirements that had been required by the Council as part of the procurement process were noted.

4.            The community engagement events in the local area that had been held to date and, those to take place in the future.

5.            The further required discussions and negotiations that would take place with the chosen developer, as outlined in the report.

6.            In response to questions raised, the volume and timing of the provision of affordable housing as part of this phase of the development was discussed and explained to Members in detail. This included the provision of affordable rented units.

7.            Councillor Caliskan (Leader of the Council) expressed her thanks and appreciation to colleagues and officers for the significant amount of work that had been undertaken over the last 12 months, and previously. The current administration had been very clear on its priorities and vision for the Meridian Water development and had been pleased with the interest received from potential developers.

Alternative Options Considered: NOTED, the detailed alternative options that had been considered as set out in section 4 of the report including: end current procurement and re-procure; end current procurement and the Council self-deliver; and, end current procurement and sell land.

DECISION: The Cabinet agreed to

1.            Approve the selection of Bidder A as the Preferred Developer and authorise the Programme Director – Meridian Water (In consultation with the Director of Law and Governance and the Director of Finance) to enter into a Development Agreement and ancillary documents for Meridian One.

2.            Prior to signing the Development Agreement authorise the Executive Director – Place (in consultation with the Director of Law and Governance and Director of Finance) as far as was permitted to enter into discussions with Bidder A to secure up to 50% affordable housing with the Council retaining at least 75 affordable rented units on the site.

3.            That at the conclusion of the discussions referred to above, authority be delegated to the Leader (in consultation with the Executive Director – Place, the Director of Law and Governance and Director of Finance) to confirm the level of affordable housing for inclusion in the Development Agreement which must fall within a range of 35%-50% in addition to the Council retaining at least 75 affordable rented units.

4.            Subject to the above negotiations being concluded and valuation advice being finalised to delegate authority to:

(a)  The Cabinet Member for Finance and Procurement to approve the valuation of the retained affordable rented units to be appropriated to the Housing Revenue Account and the necessary accounting adjustments between the General Fund and the Housing Revenue Account; and

(b)  The Cabinet Member for Housing to approve the appropriation of the retained affordable rented units to the Housing Revenue Account.

5.            Approve the addition, subject to the agreement of the Preferred Developer, of an option in the Development Agreement for the Council to buy-back any remaining unsold residential units prior to the Developer marketing them overseas which they were only permitted to do 12 months after the completion of the homes.

6.            In the event that the Developer discharges the Planning Condition but the Council fails to discharge any of its Conditions Precedent by the long stop date, and the Development Agreement was consequently terminated, approve the payment by the Council to the Developer a fair value for the intellectual property rights of any work conducted by the developer related to the reserved matters planning consent.

7.            Approve the Council underwriting any potential Carbon Off-Setting costs under the terms of any planning consent for all future phases as detailed in the report until such time as Energetik connects to the low-carbon supply.

8.            Delegate authority to the Executive Director – Place, in consultation with the Director of Law and Governance, to enter into a purchase agreement for the Pressure Reduction Station (PRS) land from National Grid on the terms set out in the report subject to a satisfactory Red Book valuation and business case.

Reason: Recommendation to enter into Development Agreement with Bidder A on the terms offered: Acceptable land value offered; timely delivery of homes; quality design of housing and social infrastructure in lien with Meridian Water vision; setting benchmark for continue development of Meridian Water, maintaining market confidence in the Council and the scheme.

(Key decision – reference number 4864)