Further to Minute 34 (14 July 2009), the Cabinet Member for Regeneration presented a progress report on the development proposals for the London Road / North Street area of Barking Town Centre.
Following a successful procurement process for a development partner, Bouygues Development has been identified as the Preferred Bidder for the project. The Cabinet Member advised on the key aspects of the development proposals which include a major foodstore with residential units above and car parking below and a market square, to be accompanied by improvements to public access and the public realm. The Cabinet Member also outlined the financial implications for the Council of the various aspects of the project, which will include acquiring non-Council owned land in the area, and confirmed that the overall project will represent over £100m of investment in Barking Town Centre.
In relation to the residential units, the Cabinet Member explained why these have been earmarked for private sale and confirmed that the other residential development proposals in the Barking Town Centre area will reflect the Council’s overall vision for a mix of private and social housing. The Head of Regeneration and Economic Development also advised that as this site is included in the Borough Investment Plan it may be possible to attract future funding from the Mayor of London, in which case there may be scope to include social housing within this particular project. Other issues raised included the need to ensure that the developer meets its obligations regarding local employment and the impact on the Housing Revenue Account of the loss of revenue from commercial properties in the area and officers agreed to respond accordingly on these issues.
Agreed, in order to assist the Council in achieving all of its Community Priorities, to:
(i) Appoint Bouygues Development as the preferred Development Partner for phase 2 of the London Road / North Street site subject to the agreement of a minimum capital receipt.
(ii) Authorise the Corporate Director of Finance and Resources, in consultation with the Legal Partner, to enter into the following with Bouygues Development subject to the agreement of the minimum capital receipt:
· a Development Agreement ;
· a 153 year Lease and Building Lease;
· Compulsory Purchase Order (CPO) Indemnity Agreement;
· Car Park Management Agreement and
· Overage Deed
(iii) The components and development parameters associated with the proposed Scheme submitted by Bouygues Development whilst noting that the detailed Scheme will be subject to a formal planning application and the decision of the Development Control Board and LTGDC Planning Committee at a future date;
(iv) Authorise the provision of £2,238,000 within the Council’s capital budgets in order to front fund the acquisition of residual properties necessary to deliver the Scheme during the financial year 2011/12, noting that the upfront costs will be reimbursed when the Development Agreement becomes unconditional on or before 31 March 2012;
(v) Authorise the use by the Council of its Compulsory Purchase Order (CPO) making powers pursuant to Section 226(1)(a) of the Town and Country Planning Act 1990 for the acquisition of the land and Section 13 of the Local Government (Miscellaneous Provisions) Act 1976 for the acquisition of new rights over land (shown shaded on Appendix 1) for the purposes of securing, retail, residential, and leisure uses as part of the London Road / North Street Scheme;
(vi) Authorise the Corporate Director of Finance and Resources, in consultation with the Legal Partner, to:
a)
take all necessary steps to secure the making, confirmation and
implementation of a Compulsory Purchase Order including the
publication and service of all Notices and the presentation of the
Council’s case at any public inquiry following the making of
the Compulsory Purchase Order for the land shown shaded on the plan
attached as Appendix 1;
b) approve agreements with landowners setting out the terms for withdrawal of objections to the Compulsory Purchase Order, including, where appropriate, seeking exclusion of land or new rights from the Compulsory Purchase Order and/or making arrangements for the relocation of occupiers;
(vii) Authorise the appropriation of the land owned by the Council (the area within the red line shown on the Plan at Appendix 1 to the report) for the purpose of bringing forward the London Road / North Street Scheme in accordance with Section 122 of the Local Government Act 1972.