A report from the Executive Director Place is attached. (Key decision – reference number 5343)
Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place seeking approval of proposals for the redevelopment of Joyce Avenue and Snell’s Park.
1. Subject to the outcome of the ballot, the proposals would transform the estates and the wider Fore Street area.
2. Face to face engagement with residents had now resumed.
3. Attention was drawn to the GLA funding conditions.
4. Members welcomed the proposals for regeneration and improvements to this area, and the placemaking aspects of the scheme.
5. An increase in numbers of family sized homes was proposed, and housing to meet the needs of residents.
6. Confidence was expressed in the Council’s ability to deliver the scheme and the financial model was sound and robust.
7. It was anticipated that a planning application would be submitted after the ballot, in the New Year / Spring 2022.
Alternative Options Considered:
The Council had explored various delivery and financing routes, including non-demolition and newbuild. The condition of the current blocks and the known anti-social behaviour on the estate was a matter of concern that only a redevelopment will help to address.
DECISION: The Cabinet agreed to
1. Approve the financial model on the basis of the assumptions in the base case for Joyce and Snell’s over the period 2023-2038/39 and note the capital requirements.
2. Approve, for recommendation to Council, an addition to the Capital programme of £42m made up of an increase in HRA £124.7m and a reduction in General Fund £82.7m reflecting a revised mix of units against that of the original scheme included in the approved budget. Addition is made up of a reduction of £196.5m for 2021/22 to 2030/31 offset by an increase of £238.5m for 2031/32 to 2037/38 and these will be reflected in the Budget and MTFP updates to Cabinet 9 February 2022.
3. Note a reduction in the overall borrowing requirement for the scheme, against the approved budget approved by Council 2 March 2021 (KD5210 & KD5211) all phases, as a result of increased grant and capital receipts assumed in the financial base case and Council’s overall borrowing remains under £2bn cap, everything else remaining constant although the position will be kept under review as part of the HRA Business Plan update.
4. Authorise capital expenditure for leaseholder buyback for Phases 0-3 Joyce and Snell’s, for programme years 2022/23 to 2026/27 up to £55m, which is assumed within the overall financial base case.
5. Approve the extension of appointments and additional expenditure for design and professional services up to a total budget (£10m) including project management, preparation of a masterplan and planning application, legal advisors and procurement support, to be committed in years 2021 to 2023.
6. Subject to any resident feedback during the ongoing consultation period, approve the draft Landlord Offer for rehousing tenants and leaseholders as appended to this report and commencement of the S105 consultation; and delegate to Director of Housing and Regeneration in consultation Leader and Cabinet Member for Social Housing the approval of any changes which are not material to the financial case.
7. Subject to a test of opinion, approve the commencement of ballot for the redevelopment of Joyce and Snell’s to secure the resident mandate for new and better homes and a safer neighbourhood.
8. Approve the submission of ballot proposals to the Greater London Authority (GLA) as required to draw down grant funding.
9. Approve the submission of the masterplan and Council delivery of Phases 0-3 to support the construction of new homes for decant of existing residents.
10. Note that officers will commence procurement of the contractor for construction of the homes in Phases 0-3 and that award will be subject to a further Cabinet decision in 2022, including at that stage any proposals for use of Compulsory Purchase Order powers, if appropriate and deemed necessary after consultation with residents.
11. Approve acceptance of the grant funding approved under the Affordable Homes Programme 2021/26, or in the event that GLA grant funding is not committed, use unspent Right to Buy receipts or reserves, to reduce the borrowing requirement for the regeneration programme and keeping within the agreed financial parameters of the model and scheme, noting that any ballot will be subject to confirmation of this funding and satisfactory review of financial impacts on Council.
12. Delegate to the Director of Housing and Regeneration and Executive Director of Resources in consultation with Leader and Cabinet Members (Finance and Social Housing) to make changes to the programme, landlord offer, tenure mix and phasing of the masterplan, where those changes are in line with the approved base case financial model agreed by virtue of this Cabinet decision.
Reason: NOTED the detailed reasons for the proposals as set out in paragraphs 16 to 30 of the report.
(Key decision – reference number 5343)