Decision details

The Cabinet will be presented with an update report on the Becontree Heath Masterplan project, including the appointment of Countryside Properties as the preferred development partner and the proposed commercial agreement, and asked to approve appropriate arrangements that extend beyond the authority given by Cabinet on 15 September 2015.

Further to Minute 46 (15 September 2015), the Cabinet Member for Economic and Social Development presented a report which gave an update on the project and the finalisation of commercial terms with the appointed development partner, Countryside Properties.

The original plans for the development of 95 private-for-sale and 46 shared ownership properties were put on hold when higher than anticipated site infrastructure and remediation costs meant that the Council would not receive any of the projected land receipt.  The revised scheme would involve the development of 83 private-for-sale, 46 shared ownership and 41 affordable rent properties, representing an increase in the percentage of affordable properties from 32.6% to 51.2%.  The 87 shared-ownership / affordable rent properties would be available at variable market rent levels and retained within the Council’s Barking & Dagenham Reside structure, providing long-term revenue streams for the Council and other capital returns to mitigate an investment of £23m. 

During consideration of the report, Cabinet Members discussed issues relating to the Grenfell Tower tragedy and the work undertaken to ensure that a similar tragedy could not occur in Barking and Dagenham.  The Leader confirmed that a statement would be made at the Assembly meeting on 19 July 2017 and commented on how proud he was of London’s response to the tragic events.

The Cabinet resolved to:

(i)  Agree to the finalised commercial terms between the Council and Countryside Properties, for the 170-unit regeneration scheme at Becontree Heath, as set out in the report.

(ii)  Delegate authority to the Chief Executive, in consultation with the Director of Law and Governance, the Chief Operating Officer and the Cabinet Members for Finance, Growth and Investment and Economic and Social Development, to determine the most appropriate vehicle within the Barking & Dagenham Reside structure to develop, own and procure the construction, management and maintenance of 41 affordable rented and 46 shared ownership properties;

(iii)  Agree to the principle of borrowing up to £11m within the General Fund from the Public Works Loan Board and/or the European Investment Bank to finance the development and ownership of the affordable rent properties via a loan agreement made between the Council and the affordable rent Special Purpose Vehicle;

(iv)  Agree to the principle of borrowing up to £12m within the General Fund from the Public Works Loan Board, and/or the European Investment Bank to finance the development and ownership of the shared ownership properties via a loan agreement made between the Council and the shared ownership Special Purpose Vehicle;

(v)  Delegate authority to the Chief Executive, in consultation with the Director of Law and Governance, the Chief Operating Officer and the Cabinet Members for Finance, Growth and Investment and Economic and Social Development, to vary the tenure mix where this leads to materially better financial terms, to negotiate terms and agree the contract documents to fully implement and effect the Becontree Heath redevelopment project; and

(vi)  Authorise the Director of Law and Governance, or an authorised delegate on her behalf, to execute all the legal agreements, contracts and other documents on behalf of the Council.