Issue - meetings

Appendix 2 to the report is in the private section of the agenda at Item 16.

Further to Minute 65 (18 November 2014), the Cabinet Member for Regeneration and Social Housing presented an update report on the redevelopment of the former Abbey Sports Centre site. 

The Cabinet Member confirmed that the proposed redevelopment would continue to offer a mix of residential properties and commercial space, as well as a community-focussed cinema and accommodation for Care City, the joint venture between the Council and North East London NHS Foundation Trust.  There were, however, two main changes to the original plans.  Firstly, the development would now comprise a total of 170 residential units of which circa 35% would be affordable (at a blended 70% of market rent); the original scheme was based on a total of 147 units for private sale.  The second related to the funding of the project, as it was now proposed that the Council would provide the development finance to Sherhill (Barking) Limited on commercial terms. 

Cabinet Members welcomed the revised proposals and commented on the success of the Care City project, which had already established itself as a national test-bed centre for some of the latest innovations in the health and social care fields.  Reference was also made to some recent criticism of the Council’s regeneration plans for the Town Centre area, particularly in relation to the height of some developments.  The Cabinet Member for Regeneration and Social Housing and the Leader of the Council both responded to the criticisms, pointing out the Council had received support for its regeneration projects from heritage and other recognised bodies and was committed to protecting open spaces and designated green belt land for the benefit of the whole community. 

The Cabinet resolved to:

(i)  Approve the proposed changes to the scheme design and for the Council to provide short-term development finance to Sherhill (Barking) Limited up to the sum of £28m on the terms set out in Appendix 2 to the report, to be funded via borrowing through the General Fund from the Public Works Loan Board;

(ii)  Delegate authority to the Chief Operating Officer, in consultation with Director of Law and Governance and the Cabinet Member for Regeneration and Social Housing, to scrutinise the due diligence reports, negotiate final terms and agree the contract/loan documents to fully implement and effect the proposals set out in the report; and

(iii)  Authorise the Director of Law and Governance, or an authorised delegate on her behalf, in consultation with the Chief Operating Officer, to execute all the legal agreements, contracts, loan, security and other documents on behalf of the Council.