Agenda item

To receive a report from the Executive Director Place requesting authorisation of the expenditure of the detailed Meridian Water Programme Budget. 

       (Report No: 104A)

     Key Decision No: KD:4469

Council is asked to approve the changes to the Capital Programme. 

Cabinet agreed to recommend this report to Council at their meeting on 16 October 2019. 

Please see also report number 105A on the part 2 agenda. 

Councillor Caliskan proposed and Councillor Maguire seconded the report of the Executive Director Place recommending a detailed capital budget for the Meridian Water regeneration programme for the remainder of 2019-20, 2020-21 and 2021-22 financial years.  (Report No: 104A)

NOTED

1.            Cabinet agreed to recommend the report and recommendations to Council following their meeting on 16 October 2019. 

2.            The Council has made great progress on the Meridian Water scheme over the past 18 months and the report sets out how the Council will build on this success and plan for the future. 

3.            The Council’s award of £156m from the Housing Infrastructure Fund, one of the biggest single external funding agreements ever secured will enable the Council to build the infrastructure to unlock the huge potential of the scheme. 

4.            The new train station is now in place and services have increased.  The first development partner has been recruited and Meridian One delivering 700 new homes should be ready by late 2021.  Progress has also been made towards Meridian Two to deliver 250 affordable homes.

5.            Meanwhile use plans have been successful and are helping to generate income. 

6.            A planning application for 2,300 homes, a primary school and essential community facilities for the next stage has been submitted. 

7.            The financial modelling is robust.  With the Council acting as the master developer Meridian Water is a viable project. It will be a sustainable, mixed community of benefit to local residents with a good mix of tenures and employment opportunities.

8.            The Council will have to be able to pay off borrowing and have enough capacity in the Housing Revenue Account and Capital stocks to improve other housing services. 

9.            The report sets out and recommends a detailed capital budget for Meridian Water for the next 2 and a half years to 2021-22. It also sets out a 10 year indicative capital budget to 2029 for the programme.

10.         About 40% of the costs set out in this report for 2021-22 will be provided from grant funding reducing the council borrowing requirements. 

11.         The scheme projects that the Council will be a net recipient of £193m over the 30 year period.  Money which will be used to invest in the Council housing stock. 

12.         The concern of the Opposition whilst supporting the meanwhile uses:

·         About the affordability of the scheme and the amount of debt being built up.

·         The lack of scrutiny of this decision.

·         That costs could be covered by property sales if a different model other than the social value model was used. 

·         The lack of information about the proposed budget of £286m and the forecast income which it was felt should have been included in the part one report. 

·         The long delays to the project and the lack of homes built after 10 years.

·         That the Housing Infrastructure Fund whilst welcome would only cover a small amount of the costs. 

13.         The response of the majority group that: 

·         The Council was borrowing to invest and had a vital role to play in developing housing for the borough’s residents.

·         The meanwhile uses were valuable.  The creative economy created 1 in 6 jobs in London.  Meridian Water has provided useful space for makers and creative users.  It was a hive of activity with all the associated benefits.  Events such as the recent Field Day had festival attracted over 28,000 people bringing life to the area and putting Enfield on the creative map. 

Councillor Ergin Erbil moved motion 13 (j) that the question now be put, seconded by Councillor Ian Barnes.  This was agreed after a vote with the following result:

For:  21

Against: 14

Abstentions: 0

After this the recommendations were put to the vote and agreed with the following result:

For:  21

Against: 14

Abstentions: 0

The following councillors asked for their names to be recorded as voting against: 

Councillor Maria Alexandrou

Councillor Clare De Silva

Councillor Chris Dey

Councillor Alexandro Georgiou

Councillor Elaine Hayward

Councillor James Hockney

Councillor Joanne Laban

Councillor Andy Milne

Councillor Terry Neville

Councillor Lindsay Rawlings

Councillor Michael Rye

Councillor Edward Smith

Councillor Jim Steven

Councillor Glynis Vince

AGREED

1.         To note the Meridian Water 30-year Financial Model which confirms the overall financial viability of delivering Meridian Water.

2.         To authorise expenditure of the detailed Meridian Water programme budget totalling £286m to cover the remainder of 2019-20, plus the 2020-21 and 2021-22 Financial Years to undertake the projects and activities set out within this report.

3.         To note the indicative Meridian Water programme budget which covers the period 2022-23 through to 2028-29 totalling £245m, which is included within the Financial Model baseline.

4.         To authorises the addition of £286M to the approved capital programme.

5.         To notes the estimated budget requirements for 2022/23 to 2028/29 of £245M, which would be approved as part of the 10-year capital programme.