Decision details

The Cabinet will be asked to approve proposals relating to the new build development at Gascoigne East Phase 3b to provide 334 new homes at a revised Contract Sum.

Cabinet resolved to:

(i)  Approve the recommendation to proceed with the Gascoigne East Phase 3b development project at the new contract sum agreed with Wates of £147,996,637;

(ii)  Approve the revised total development cost of £174,657,138 including forecast capitalised interest (£169,256,073 excl. interest);

(iii)  Approve the implementation of steps 1 to 4E, as set out in paragraph 2.17 of the report, as the most viable proposal that meets the IAS metrics and the steps required to achieve this position;

(iv)  Approve the handover loan to Reside at £96,080,179, comprising £75,170,844 for Affordable Rental homes and £20,913,031 for the London Affordable Rent homes;

(v)  Approve in principle the use of Council funding of up to £5,987,703 for the public realm works, to be funded from the future disposal of commercial asset(s) or Section 106 monies;

(vi)  Approve the revised use of Right to Buy Receipts of up to £52m to support the viability of the Affordable Rent homes and 3-4 bed London Affordable Rent homes;

(vii)  Approve the revised use of GLA Affordable Housing Grant of £6m and GLA Right to Buy ringfenced monies of £9,754,813;

(viii)  Approve the allocation, subject to the endorsement of the Assets and Capital Board, of £1,771,784 of S106 contributions to support the viability of the LAR homes or the delivery of public realm; and

(ix)  Note that Scenario 4E meets the IAS return metrics producing a Net Present Value of +£40m and a positive cumulative cashflow in year 1.