Agenda item

Report:  Bridge Close Regeneration LLP Business Plan Refresh 2024-2025

Presented by: Councillor Graham Williamson - Cabinet Member for Development and Regeneration

Cabinet:

1.     Approved the draft Bridge Close Regeneration LLP Business Plan 2024-2025 (the Business Plan) as attached at Appendix B.

2.     Agreed the provision of a budget to enable the funding and delivery of the regeneration of Bridge Close as required and detailed within the exempt Financial Implications and Risks section; this budget to be included within the proposed HRA Capital Programme that will be considered by Cabinet in the Housing Revenue Account Business Plan update.  

3.     Agreed that the Leader of the Council, after consultation with the Strategic Director of Place, the S151 Officer the and the Monitoring Officer, approve detailed business cases, funding arrangements and legal agreements as may be required to deliver the regeneration of Bridge Close as per the Business Plan 2024-2025.

4.      Noted that the Strategic Director of Place will continue discussions with the Havering Islamic Community Centre (HICC) with a view to relocating HICC within the proposed new development or, if a suitable alternative site could be found, elsewhere.

5.      Noted that the Strategic Director of Place will continue discussions with the London Ambulance Service (LAS) with a view to relocating the LAS to a suitable alternative site elsewhere.

6.      Instructed the Strategic Director of Place, in consultation with the S151 Officer and the Monitoring Officer, to bring forward a report for the making of the Compulsory Purchase Order (CPO) for the Bridge Close Regeneration scheme at the appropriate time in the financial year 2024-2025.

7.     Authorised the Strategic Director of Place, acting in consultation with the Monitoring Officer and the Section 151 Officer, to negotiate, finalise and enter into all necessary legal agreements as may be required, and to do anything incidental to bring into effect the proposed arrangements set out in Recommendations 1-6 inclusive.

Report:  Bridge Close Regeneration LLP Business Plan Refresh 2024-2025

Presented by: Councillor Graham Williamson - Cabinet Member for Development and Regeneration

1.1            The Council established a joint venture development vehicle, Bridge Close Regeneration LLP (‘BCR LLP’, ‘Joint Venture’ or ‘JV’) to bring forward the proposed regeneration of the site known as Bridge Close (see plan with red line at Appendix A). BCR LLP was until October 2020 jointly owned between the Council and a private sector partner. On 16^th September 2020, Cabinet approved the proposed acquisition by the Council of the private sector interest in BCR LLP and on 29^th October 2020, the Council entered into a purchase agreement to acquire the interest in BCR LLP that it did not already own from the private sector partner.

1.2            In light of the Council acquiring full control of Bridge Close Regeneration LLP, on 16^th December 2020, Cabinet considered a number of recommendations relating to the future funding and delivery of the scheme. Approval was granted for the Council to deliver the regeneration of Bridge Close directly, funding the development entirely through Council resources, predominantly using the Housing Revenue Account. Cabinet approved a budget with referral to and subsequent agreement by Full Council on 3^rd March 2021. Subsequently, the Bridge Close Regeneration LLP Business Plan 2022/2023 was approved by Cabinet on 16^th February 2022 and thereafter adopted by the Bridge Close Regeneration LLP.

1.3            The Business Plan forms part of a comprehensive suite of project documents, including the Members’ Agreement, the Land Agreement, the Land Acquisition Strategy, the Security Agreement and the Loan Note Instruments, which amongst others, set out the strategy and the terms and conditions for provision of funding by the Council as principal Member of the Joint Venture (noting that a wholly owned company of the Council acts as second member of the JV). The Business Plan is a suite of strategy and policy documents, including a budget and financial model with detailed forecasts, which provides a management framework for delivering the vision and objectives for the regeneration of Bridge Close.

1.4            In accordance with the Members’ Agreement, the Board of Bridge Close Regeneration LLP must prepare, issue and agree a draft Business Plan to the Council as Member. Once agreed, the draft Business Plan would replace the then current Business Plan as the formal Business Plan adopted by the Bridge Close Regeneration LLP.

1.5            This report provides an update of the Business Plan and a review of key work streams underpinning the delivery of the Council’s vision for Bridge Close. It provides an update of the budget and financial model approved by Cabinet in December 2020 and recommends that the updated Business Plan be agreed, noting the significant benefits to the regeneration of Romford town centre, the contribution towards Havering’s target for housing delivery, including affordable housing, and the expected financial returns anticipated in the plan. 

Cabinet:

1.     Approved the draft Bridge Close Regeneration LLP Business Plan 2024-2025 (the Business Plan) as attached at Appendix B.

2.     Agreed the provision of a budget to enable the funding and delivery of the regeneration of Bridge Close as required and detailed within the exempt Financial Implications and Risks section; this budget to be included within the proposed HRA Capital Programme that will be considered by Cabinet in the Housing Revenue Account Business Plan update.  

3.     Agreed that the Leader of the Council, after consultation with the Strategic Director of Place, the S151 Officer the and the Monitoring Officer, approve detailed business cases, funding arrangements and legal agreements as may be required to deliver the regeneration of Bridge Close as per the Business Plan 2024-2025.

4.     Noted that the Strategic Director of Place will continue discussions with the Havering Islamic Community Centre (HICC) with a view to relocating HICC within the proposed new development or, if a suitable alternative site could be found, elsewhere.

5.     Noted that the Strategic Director of Place will continue discussions with the London Ambulance Service (LAS) with a view to relocating the LAS to a suitable alternative site elsewhere.

6.     Instructed the Strategic Director of Place, in consultation with the S151 Officer and the Monitoring Officer, to bring forward a report for the making of the Compulsory Purchase Order (CPO) for the Bridge Close Regeneration scheme at the appropriate time in the financial year 2024-2025.

7.     Authorised the Strategic Director of Place, acting in consultation with the Monitoring Officer and the Section 151 Officer, to negotiate, finalise and enter into all necessary legal agreements as may be required, and to do anything incidental to bring into effect the proposed arrangements set out in Recommendations 1-6 inclusive.