Issue - meetings

Appendix 4 to the report is in the exempt section of the agenda at Item 21.

Further to Minute 128 (30 June 2014), the Cabinet Member for Finance, Growth and Investment introduced a report on the delivery proposals and funding options for phase 2 of the Gascoigne Estate (East) regeneration scheme.

With phase 1 due for completion in early 2018, the Cabinet Member stressed the importance of maintaining momentum into Phase 2 and he referred to the proposed mix of units within the phase 2 which he felt represented an equitable combination of tenures.  It was noted that the Living and Working Select Committee (LWSC) had undertaken a pre-decision scrutiny of an earlier draft version of the report and had made a number of observations and recommendations which were detailed in the report.

The Cabinet Member confirmed that, as with phase 1, the residential development would be delivered in partnership with East Thames Group, via the creation of Special Purpose Vehicles (SPVs) within the Barking & Dagenham Reside structure and the charity Barking Renew.

The Cabinet resolved to:

(i)  Agree the appropriation of the land, as shown edged in red in Appendices 1 and 2, at Phase 2 (including the site for Greatfields School) under Section 122 of the Local Government Act 1972 from the Housing Revenue Account to the General Fund following completion of the decanting and demolition of each block, to enable the delivery and regeneration of the eastern side of Gascoigne estate via the proposed delivery structure;

(ii)  Agree that the residential units in Phase 2 be developed in conjunction with East Thames Group and the Council acting as joint development manager;

(iii)  Agree to the establishment of a Special Purpose Vehicle (SPV) within the Barking and Dagenham Reside structure to develop, own and procure the construction, management and maintenance of 100 affordable rented and 115 shared ownership units;

(iv)  Agree to the sale at practical completion of 115 shared ownership units to East Thames Group;

(v)  Agree to the establishment of a SPV within the B&D Reside structure to develop, procure the construction and sale of 140 private sale units to be sold on the open market jointly with East Thames Group / London and Quadrant Housing Trust;

(vi)  Agree to the principle of borrowing up to £23.49m 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 homes via a loan agreement made between the Council and the affordable rent SPV;

(vii)  Agree to the affordable rent SPV being legally owned for the funding term by the Barking Renew Charity and B&D Reside for the purposes of owning, managing and maintaining the units in accordance with the funding terms in a loan agreement between the Council and SPV;

(viii)  Agree to the principle of borrowing up to £26.02m 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 homes via a loan agreement made between the Council and  ...  view the full minutes text for item 23