Agenda item - Meridian Water Phase 2 Business Case

Agenda item

Meridian Water Phase 2 Business Case

A report from the Executive Director – Place is attached. (Report No.103, agenda part two also refers) (Key decision – reference number 4953)

 

 (Report No.102)

(7.45 – 7.50 pm)

Minutes:

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director – Place (No.102) setting out the options appraisal for the delivery model for circa 1,550 homes within Phase 2.

 

NOTED

 

1.            That Report No.103 also referred, as detailed in Minute No.18 below refers.

 

2.            That in July 2018 the Cabinet had approved the Meridian Water Programme Update report to undertake business case development for the delivery of future phases. This report set out the options appraisal for the delivery model for phase 2 with four shortlisted options having been appraised, as detailed in the report.

 

3.            That the evaluation results showed that Option 1 (Council as Master Developer) and Option 3 (Council led development of a rented housing scheme) both met the criteria as the delivery model for Phase 2 and had scored very similar levels, as set out in the report. Further work on the financial evaluation was to be undertaken on both options and more detailed analysis to be brought back to Cabinet in Autumn 2020.

 

4.            That approval was being sought to enable officers to undertake the further work required as set out in the decisions below.

 

5.            The proposal to commence soft market engagement on co-living/student housing blocks, decision 5 below referred. This was a new area for the Council.

 

6.            The recent submission to the Planning Committee for Phase 2 of Meridian Water; this was a significant step in progressing the development and future proposals.

 

7.            The ambitions for Meridian Water as a whole including place making and job creation.

 

8.            In response to questions raised, it was confirmed that the housing provision would include suitable units for adapted/supported living. The detail of the housing provision to be included in the development scheme and the level of detail that could be specified by the Council was explained to Members. This had been made possible by the Council’s role in and approach to the Meridian Water scheme development.

 

9.            Members were pleased to note the success to date of the Meridian Water meanwhile uses including the use of “The Sheds” for film and TV productions and special events held such as Field Day. The facilities provided at Meridian Water were being promoted and potential growth areas considered. Opportunities would be taken to introduce and highlight Meridian Water to London and beyond. The new station at Meridian Water had a regular service from Stratford and provided the required transport facilities to reach the area. There had been a significant number of visitors to events over the summer. A special Halloween event would also be taking place on 3 November 2019. There had been an increased level of interest from local community groups and residents.

 

10.         A discussion followed on the meanwhile uses at Meridian Water and subsequent promotion of not only Meridian Water but Enfield as a whole. The reputation of the area and the Borough was growing and attracting further interest in the area and the facilities available. Further filming would be taking place next year.

 

11.         In conclusion, the further work required on the options appraisal and the future reports to be presented to Cabinet was outlined. The good progress that was being made was highlighted.

 

Alternative Options Considered: NOTED, the summary of alternative options that had been considered as set out in section 6 of the report including:

·         Option 2: Council to form a 50/50 Joint Venture (JV) with a public sector partner.

·         Option 3: Council led development of a rented housing scheme.

·         Option 4: Investor led rented housing development’ LBE retain the affordable housing.

The evaluation summary was set out in section 5.1.6 of the report.

 

DECISION: The Cabinet agreed to

 

1.         Note the result of the Business Case analysis was that Option 1 and Option 3 were the highest scoring options and therefore approved further work to formulate a detailed delivery plan on both options to assess the most appropriate strategy given the Council’s wider financial position.

 

2.         Approve that Option 2 and Option 4 were not taken forward for further consideration.

 

3.         Delegate authority to the Meridian Water Programme Director to appoint advisors and design teams to work up a detailed delivery plan for Phase 2 to include:

 

·         Reserved matters application and detailed design for Phase 2A

·         Detailed procurement strategy including soft market engagement

·         Detailed cost plan and financial evaluation

·         Strategy for how the Council might hold market rented units

·         Consideration of the Council’s wider financial position to produce an optimal strategy for servicing interest and debt repayment

 

4.         Note that the financial evaluation would be undertaken on both Option 1 and Option 3.

 

5.         Approve the commencement of soft market engagement on Co-living/Student housing blocks and the subsequent marketing of the blocks to a specialist Co-living/Student housing provider.

 

6.         Delegate to the Executive Director – Place in consultation with the Executive Director – Resources disposal of circa 0.5ha of land to a specialist Co-living provider.

 

7.         Delegate to the Meridian Water Programme Director the resourcing of the team(s) to delivery Phase 2A.

 

8.         Delegate authority to the Director of Meridian Water, liaising with the Director of Finance, to negotiate loan terms with the GLA.

 

Reason: NOTED, the detailed reasons for the recommendations as set out in section 7 of the report.

(Key decision – reference number 4953)

Supporting documents: