A report from Sarah Cary (Executive Director – Place) is attached.
(Key Decision Reference Number: 4873) (Report No: 177)
Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Place (No.177) regarding the redevelopment of the Montagu Industrial Estate.
1. That Appendix 1 contained exempt information and was attached to the part two agenda (Minute No.13 below referred).
2. That in September 2016, the previous Cabinet had approved the redevelopment of the Montagu Industrial Estate, as set out in paragraph 1.2 of the report. The Cabinet had also approved the use of the Council’s property at the Estate as an equity stake in a joint venture to be set up with a specialist developer, as detailed in paragraph 1.3 of the report. The Joint Venture development partner was Henry Boot Developments. The Joint Venture structure provided that the Council puts in its land and acquires the additional land ownerships and Henry Boot fund the redevelopment, as explained in the report.
3. That this report requested authority to continue with the redevelopment of the Estate with the Joint Venture investing £94m (with the Council contribution being £47m) into Edmonton Green and Enfield’s industrial heartland. The scheme would deliver an employment hub that encouraged economic growth and significant local employment of an anticipated increase of approximately 630 jobs in the area. The redevelopment would also increase income for the Council, reversing the current decline in income associated with the outdated property. There was a need for modern buildings that met legislative requirements and were energy efficient. The proposals supported the Council’s climate change priorities.
4. That planning permission had been granted for Phase 1 of the redevelopment with a start on site expected in Spring 2020, as set out in the report.
5. That the report requested an increase in capital expenditure and demonstrated the financial case for the overall scheme.
6. That a further report would be presented to Cabinet in due course to seek specific authorisation for the making of a Compulsory Purchase Order (CPO) to enable the redevelopment.
7. Members endorsed the proposals and welcomed the investment in this part of the Borough which would support the strategic industrial land in the area and result in job creation and, increased rental income opportunities for the Council. A lack of such investment would result in a continued decline in rental income and a negative impact on the Council’s business rate revenue.
8. The negative impact that the decline of the Estate had had on the local area and welcomed the business and job opportunities that the investment would support.
9. In response to questions raised, Members were advised of the active support that would be provided to any displaced businesses affected by the redevelopment. In addition, reassurances were given that the procurement process would include an obligation to comply with the terms and conditions of the UNITE construction charter; promote the use of local businesses through the Build Enfield Portal and ensure that the aims of the Council’s Modern Slavery Charter were adhered to with no exploitation of individuals being tolerated.
10. Members were reassured that the members on the Joint Venture Partnership (Cllrs Tolga Aramaz and Ergin Erbil) and the Upper Edmonton Ward Councillors (Cllrs Kate Anolue, Huseyin Akpinar and Mahtab Uddin) were aware of the proposals. Local businesses and the community were supportive.
Alternative Options Considered: NOTED, the detailed alternative options that had been considered as set out in section 8 of the report including: sell now; do nothing; council redevelops estate without joint venture; redevelop the site with our partner and then sell.
DECISION: The Cabinet agreed to
1. Approve proceeding with the redevelopment of the Montagu Industrial Estate, in Joint Venture with Henry Boot Developments, as described in the report.
2. Delegate authority to the Director of Property and Economy to undertake any associated procurement (expected to be limited), and in consultation with the Director of Law and Governance authority to agree any ancillary agreements and non-material amendments required to support the Joint Venture.
3. Note that a subsequent Cabinet report would follow to authorise the making of a Compulsory Purchase Order (CPO) to support the redevelopment.
4. Approve the Business plan and Master Plan as detailed in the confidential Appendix 1 to the report, as detailed in Minute No.13 below.
5. Recommend to Council the approval for an additional £33.36 million added to the approved capital programme, to be used for land acquisition and enabling costs for all phases of development, including applicable compensation for affected interests.
6. Approve the funding of “off-site” purchases of commercial property to relocate businesses within the red line boundary where it was commercially viable to do so within the constraints of the budget.
7. Note that following the further Cabinet report seeking authority to authorise the making of a CPO, delegated authority would be sought for the Executive Director – Place, in consultation with the Director of Law and Governance, the power to affect the making, confirming and implementation of the CPO and to take all necessary steps to give effect to the CPO in respect of the Order Land.
Reason: NOTED, the detailed reasons for the recommendations as set out in section 9 of the report.
(Key decision – reference number 4876)