Agenda item

Further to Minute 112 (9 March 2016), the Cabinet Member for Regeneration and Social Housing introduced a report on proposals associated with the potential redevelopment of the former Royal British Legion (RBL) site in Rectory Road, Dagenham, and the adjacent housing block of 1-18 Jervis Court to provide circa 56 homes and 468m² of community space on a 0.34 hectare site.

The Cabinet Member explained that while the project had several similarities to the Rainham Road South scheme discussed earlier in the meeting, the 18 properties at Jervis Court, occupied by 4 leaseholders and 14 Council tenants, were in a good condition.  Therefore, the benefits of including Jervis Court in the redevelopment project were primarily linked to the additional affordable homes and wider community benefits that could be achieved, as the redevelopment of the RBL site on its own would only achieve up to 18 additional units alongside the 18 units already at Jervis Court, with no community space provision.

The proposed tenure mix of the preferred option would include 35 Affordable Rent units and 21 London Affordable Rent (LAR) units.  As with the Rainham Road South project, the properties would be managed via the B&D Reside structure and the current Council tenants would have priority to return to the new LAR units, should they wish to do so.

The Cabinet Member confirmed that should the Cabinet give ‘in principle’ approval, the full programme of consultation with affected residents and Village ward councillors would commence.  On that issue, Councillor Mullane referred to the concerns already expressed by the Village ward councillors regarding the potential displacement of the current residents and suggested that, as a general principle, redevelopment plans for an area should be discussed with ward councillors much earlier in the process.  Councillor Mullane also stressed the need to learn the lessons from the redevelopment of The Leys estate, where consultation with residents and ward councillors was lacking in some areas.

Cabinet resolved to:

(i)  Approve in principle the proposed redevelopment of the former Royal British Legion site and Jervis Court (Option 3 in paragraph 2.2 of the report), as shown edged red in the plan at Appendix 1 to the report, subject to consideration of the outcomes of consultation with affected residents;

(ii)  Approve consultation with affected tenants and leasehold interests in respect of 1-18 Jervis Court pursuant to Section 105(1) of the Housing Act 1985 in respect of the proposed redevelopment (Option 3) and potential demolition of the premises and delegate approval of the details of any consultation to the Director of Inclusive Growth and/or a delegate on his behalf, in consultation with the Director of Law and Governance;

(iii)  Agree the service of Initial Demolition Notices on all secure tenants at the affected properties at the appropriate time having regard to the outcomes consultation, in order to suspend the requirement for the Council to complete Right to Buy applications for as long as the notices remain in force and delegate approval and timing of final notices to the Director of Inclusive Growth, in consultation with the Director of Law and Governance;

(iv)  Agree in principle that, subject to the grant of an acceptable planning permission and receipt of satisfactory construction tender prices, the project be financed and held within the residential asset class of the Investment and Acquisition Strategy;

(v)  Agree in principle the inclusion of the project in the Council’s Capital Programme in the total sum of £19,700,000, subject to securing planning permission and procurement of a contractor in accordance with the project outputs and budget;

(vi)  Agree in principle the Funding Strategy set out in section 3.5 of the report, including borrowing up to £13,402,000 within the General Fund from the Public Works Loan Board, to finance the development and ownership of the affordable rent homes via a loan agreement made between the Council and any suitable vehicle that the new units may be held in (e.g. a new B&D Reside Registered Provider or other vehicle); and

(vii)  Approve in principle the appropriation of the land, as shown edged red in the plan at Appendix 2 to the report, under Section 122 of the Local Government Act 1972 from the Housing Revenue Account to the General Fund.