Issue - meetings

Concerns the financial and business affairs of the Council and third parties (paragraph 3)

(Prior to consideration of the report, Councillor Worby left the meeting in view of her pecuniary interest as an employee of East Thames Group.)

Further to Minute 39 (20 September 2011), the Cabinet Member for Housing presented a report on the proposed masterplan for the redevelopment of the eastern side of the Gascoigne Estate and detailed proposals for the delivery of Phase 1 of the project, including alternative options regarding the funding and ownership of the housing development.  The main features of the Phase 1 development included:

·  a mixture of houses and flats;

·  a new secondary and primary school;

·  a replacement community/children’s centre;

·  provision for a replacement of the existing health centre/GP practice to be funded by the GP practice with NHS England rental guarantee and for places of worship;

·  play areas and open spaces.

Following an OJEU procurement, East Thames Group were appointed as the Council’s Housing Association partner for the project in the spring of 2013.  Council officers and representatives of East Thames Group had carried out a reassessment of the most appropriate tenure mix for Phase 1 and an options appraisal in respect of financing and ownership of the new properties.  The preferred option would involve the creation of a Special Purpose Vehicle (SPV) with charitable status to develop, own and the commission the management of the new units.  The SPV would be funded by the Council via a loan agreement and the proposals also included the Council’s land being leased to the SPV under a long-term agreement.

In respect of the tenure mix under Phase 1, it was noted that 45% would be Shared Ownership and 43% Affordable Rented with the remaining 12% earmarked for private sale.  The Divisional Director of Regeneration responded to questions from the Cabinet Member for Children’s Social Care on Right to Buy / Acquire issues and possible restrictions to prevent properties being bought by ‘Buy To Let’ speculators.  Officers agreed to report to the next meeting on the legal position of those issues, together with the potential implications of accepting Affordable Homes Programme funding from the Greater London Authority.

The Cabinet Member for Finance expressed his support, as a Gascoigne ward councillor, for the project and spoke on the benefits and improvements that the Council’s regeneration have already brought to the area, while the Cabinet Member for Education and Schools welcomed several of the design aspects. 

It was noted that a detailed report on the proposed funding arrangements would be presented to the next Cabinet meeting and officers confirmed that the report would provide the necessary assurances regarding the borrowing and lending arrangements.

Cabinet resolved:

(i)  To approve the draft masterplan and detailedPhase 1 proposal for the eastern side of Gascoigne Estate, including the location of the new secondary and primary schools, as set out in the body of and Appendix 1 to the report;

(ii)  To approve the appropriation of the whole redevelopment site (following decanting and demolition of each block), as shown edged in red in  ...  view the full minutes text for item 128