A report from the Executive Director Place is attached. (Key decision – reference number 5252)
Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place providing an update on the progress made to deliver new homes and sustainable neighbourhoods at Meridian Water.
1. The progress at Meridian Water was outlined. Cabinet was asked to support accelerating the delivery of homes within Meridian Four.
2. A supplementary report amendment was tabled in respect of Meridian Four residential programme and unit mix and is appended to the minutes.
3. Proposals around Build to Rent provision were clarified.
4. Officers confirmed that a new health centre would be included in Meridian One and would also serve existing communities at Angel Edmonton.
5. Officers confirmed that a minimum 10% of the housing would be fitted out for those with mobility needs. More information on specialist housing would be brought to Cabinet in the New Year.
Alternative Options Considered:
1. As described options for Meridian Four were presented to Cabinet on the 16th September 2020, it is considered optimal that the Council delivers an entirely rented scheme.
2. A number of scenarios with regard to mix and tenure have been considered. The viability of a number of scenarios have been tested these are set out in Part 2 of the report.
3. The option that the RIBA 4 technical design does not start until the forward funding from the BtR Investor has been secured has been considered. Whilst it has the benefit that the Council would not have to fund the design work it will result in a delay in the delivery of new homes by some 12 months.
4. Do nothing – this would result in no new market or affordable homes being delivered on Meridian Four, no regeneration of the area and also no income being received to pay down the existing Council debt.
DECISION: The Cabinet agreed to
1. Note the progress to date in delivering Meridian Water, as set out in paragraphs 18 to 49 of the report.
2. Note that the expenditure and resource estimates are based on the budgets as approved by Council on 2 March 2021 (KD5210).
3. Note reconfigured capital expenditure from this review of an additional £1.93m and £6.16m in financial years 2021/22 and 2022/23 respectively, to be contained within existing overall approved budgets and reported as part of the Q2 Capital monitoring cycle appearing elsewhere on this agenda.
4. Note the Council’s role as Master Developer on the Meridian Water Site.
5. Note the Meridian Four financial update and approve the revised approach to tenure mix and viability as set out in the Confidential Appendix to accelerate the delivery of homes.
6. Confirm the strategy to progress and accelerate the delivery of circa 846 homes as set out in the Confidential Appendix, noting the positive impact on the Phase 2 financial appraisal and that the delivery cost increase is contained within the Meridian Water approved project capital programme.
7. Delegate to the Programme Director of Meridian Water in consultation with the Executive Director of Resources, the decision to forward fund the Meridian Four RIBA 4 design, as set out in the Confidential Appendix.
1. To update Cabinet on the progress made on the Meridian Water Residential Delivery Programme in respect of Meridian One, Two, Three and Four.
2. Following Cabinet Approval (16th September 2020, KD 5174), soft market testing of the Build to Rent Investor market has been completed by the Council’s advisors Gerald Eve. After testing the delivery strategy presented at Cabinet, it was found that there continues to be interest from Investors in the Meridian Water project.
3. Meridian 4 is planned to deliver circa 846 homes to: (a) Accelerate the delivery of homes; (b) Appeal to broadest range of potential investors and partners; (c) Offer the Council a developer’s profit; (d) Work within the Outline Planning Permission parameters; and (e) Create critical density and optimal placemaking opportunities early in the scheme’s development.
4. The tenure mix and viability of the scheme have changed and been further detailed since last presented to Cabinet (KD 5174) as set out in the Confidential Appendix.
5. The number of homes proposed within the project has necessitated the reconfigured capital expenditure.
(Key decision – reference number 5252)