Decision details

The Cabinet will be asked to approve proposals relating to the entering into of a Development Agreement for the delivery of 198 housing units (35% affordable) as part of the consented regeneration planned for the Trocoll House redevelopment.

Cabinet resolved to:

(i)  Agree the proposal to enter into an agreement for a long Headlease interest in up to 198 homes, comprising 35% affordable housing and approx. 650sqm of commercial floor space, subject to legal and technical due diligence;

(ii)  Agree to enter into an Agreement for Lease with the Freehold owner of the site to deliver these units on an agreement to lease, subject to acceptable legal due diligence and the Council agreeing that the proposed specification is suitable for the intended purpose;

(iii)  Agree to the borrowing of up to £2,620,264 within the General Fund to finance the entire development period. This will cover development management fees and required professional fees;

(iv)  Note the scheme meets the Investment and Acquisition Strategy financial performance metrics delivering a positive net present value of £14.2m;

(v)  Agree to the use of an existing or the establishment of a Special Purpose Vehicle(s) as required within the Barking & Dagenham Reside structure to develop, own, let, sell and manage and maintain the homes in accordance with the funding terms in a loan agreement between the Council and Special Purpose Vehicle;

(vi)  Allocate up to £50,000 to allow the necessary initial legal and technical due diligence work to be undertaken prior to entry into contract;

(vii)  Delegate authority to the Chief Operating Officer, in consultation with the Director of Law and Governance, to agree and execute any legal agreements and contract documents to fully implement the project; and

(viii)  Delegate authority to the Finance Director, in consultation with the Cabinet Member for Finance, Performance and Core Services and the Chief Operating Officer, to agree the funding and finance arrangements to fully implement the project.