Agenda item

A report from the Executive Director – Place is attached. (Report No.113, agenda part two also refers) (Key decision – reference number 4864)

 (Report No.112)

(7.55 – 8.00 pm)

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director – Place (No.112) regarding the Meridian One Developer Procurement.

NOTED

1.            That Report No.113 also referred as detailed in Minute No.20 below.

2.            That in April 2019 the Cabinet had approved the appointment of Galliford Try Partnerships (GTP) as developer for Meridian One. Authority had been delegated to the portfolio holder to confirm the level of affordable housing and Council Homes in the deal. Since that time negotiations had taken place between the Council and GTP and a deal agreed as summarised in section 1 of the report. Cabinet approval was now being sought as detailed in the recommendations and reflected in the decisions below.

3.            As detailed in section 3.3 of the report, the goal of Meridian Water was to make local people the primary beneficiaries of the scheme. The top priorities of local people had been identified as being anti-social behaviour and fly-tipping/rubbish. The report recommended to spend £200,000 towards alleviating these problems in Upper Edmonton with £100k for street cleansing and £100k for community safety.

4.            That the report delegated authority to agree the terms of the Development Agreement as set out in recommendation 2.6 and decision 6 below.

5.            The detailed proposals regarding affordable housing provision as set out in the report.

6.            The proposals for a Design Charter as referred to in section 3.2.4 of the report. The priorities of the Council regarding design were discussed.

7.            The difference between the original bid offer and the deal now agreed as set out in the table in section 3.4 of the report. Members were pleased to note the positive developments and the significant increase in the number of council homes (affordable rent) and RP intermediate homes.

8.            The progress which had been made at the site, the soil had been remediated and prepared ready for handover. It was anticipated that the first homes would be delivered in two years.

9.            That examples of work previously undertaken by GTP was of good quality and their working practices were praised by Members.

10.         That Members were reassured that the design of Meridian Water would be responding to the climate change emergency recently declared by the Council. The housing provision would include energy efficiency measures within their design. Appropriate expertise was being sought as the scheme developed and further negotiations took place. Environmental standards would be upheld and, effective energy efficiency measures implemented. It was further noted that the site would be connected to Energetik.

11.         That Members welcomed the proposed mix of housing tenure.

12.         The positive measures being taken to support the residents in Upper Edmonton as detailed in the report and noted above. The importance of supporting and promoting residents’ physical and mental well-being was noted. In addition, the opportunities for local people of all ages and backgrounds would be enhanced through the proposed development of a new Skills and Training Academy at Meridian Water by GTP. It was anticipated that this would cover a broad range of jobs and employment opportunities including apprenticeships. The Council would seek to promote the opportunities available.

13.         The significant milestones that had been achieved since the previous Cabinet decision and the progress which had been made including the successful HIF grant and the completion of Meridian Water Station.

Alternative Options Considered: NOTED, the detailed alternative options considered as set out in section 4 of the report including: do not do the deal with GTP; reduce the amount of affordable housing, or affordable rented accommodation provided; and, do not transfer responsibility for remediation and PRS/IP Main relocation to GTP.

DECISION: The Cabinet agreed to

1.            Authorise the deal with Galliford Try Partnerships (GTP) as set out in the report subject to the completion of external Red Book Valuations, undertaken by the two appointed Registered Valuers at LSH and BNP Paribas, confirming the status of the disposal in relation to s.123 of the Local Government Act 1972 “best consideration” and “market value” and approved by the Cabinet Member for Finance and Procurement.

2.            Authorise the expenditure of £200,000 towards community benefits as detailed in the report.

3.            Delegate agreement of the remediation costs, the remediation warranty and the costs for GTP to manage the relocation of the PRS to the Director of Meridian Water.

4.            Delegate agreement of the final drafting of the Design Charter to the Director of Meridian Water.

5.            Delegate agreement of the cost of completing the non-residential units to the Council’s “shell and core plus” specification to the Director of Meridian Water.

6.            Delegate authority to the Executive Director – Place in consultation with the Executive Director – Resources and the Director of Law and Governance to agree the terms of the Development Agreement and ancillary documents with GTP after receipt of a procurement risk report from Trowers and Hamlin which the Director of Law and Governance was satisfied presents an acceptable procurement risk to the Council.

7.            Delegate authority to Legal Services on behalf of the Director of Law and Governance to enter into the Development Agreement and any ancillary documents.

8.            Authorise the addition of £1.1m expenditure added to the Medium Term Financial Plan, to service the outstanding debt attached to Meridian One.

Reason: The original offer from GTP had been secured in a competitive environment during a robust procurement exercise and had been substantially higher than any other bidder. It was unlikely that such a good deal could be secured again due to a softening of the market and a general reduction in confidence amongst developers. The changes in the deal since the original offer had been at the request of the Council and, whilst the land value had reduced, were otherwise materially to its benefit in terms of decreased risk and increased affordable rented housing.

(Key decision – reference number 4864)