Decision details

To agree the proposed update for the Havering & Wates JV business plan and associated decisions.

Cabinet:

1.          Agreed to the inclusion of a budget of up to £102.3m equity for the 12 Sites and Chippenham Road scheme together with a budget of £58.7m for potential land acquisition/CPO costs within the proposed HRA capital programme, noting that the HRA capital programme recommended by Cabinet on 17 February 2021, and approved by Full Council on 3 March 2021 includes the necessary capital funding to progress the regeneration.

2.     Approved the Havering and Wates Regeneration Joint Venture Business Plan dated January 2021, as contained in exempt Appendix 3.

3.      Agreed to further forward funding for the remainder of phase 1 of the 12 Site Programme up to £9.7 million;for the development of Solar, Serena and Sunrise Courts (£1.6 million [to total £17.5m]) and the Waterloo and Queen Street Estate (£8.1 million [to total £22.7m]) and delegated authority to the Director of Regeneration to enter into the necessary forward funding agreements.

4.          Approved the removal of the Farnham and Hilldene estate from the 12 site regeneration programme, noting that the scheme would be subject to a future approval by Cabinet to be taken forward under a Council-led approach.

5.          Approved the budget of up to £0.6 million to fund the remediation works on the Solar Serena Sunrise Estate and delegated authority to the Director of Regeneration in consultation with the Director of Legal and Governance to enter into contract with the Havering and Wates JVLLP to carry out the remediation works on the site, noting that the HRA capital programme recommended by Cabinet on 17 February 2021, and approved by Full Council on 3 March 2021 includes the necessary capital funding to progress the works.

6.          Delegated authority to the Director of Regeneration in consultation with the Director of Housing and Director of Legal and Governance to enter into a contract with the Havering and Wates JVLLP to provide a longstop arrangement, where the Council would acquire any open market units on the Solar Serena Sunrise estate, which remain unsold after 18 months from practical completion of the development for a value equivalent to 75.0 per cent of open market value for units earmarked for private sale and 61.6% per cent of open market value for units earmarked for shared ownership, noting that any acquisitions would be funded from the existing affordable housing HRA capital budget set aside for the scheme.

7.          Approved the budget of up to £7.0 million to fund the offer to purchase family homes (3 bed or larger) from prospective buyers on the Solar Serena Sunrise Estate, noting that the HRA capital programme recommended by Cabinet on 17 February 2021, and approved by Full Council on 3 March 2021 includes the necessary capital funding to fund the acquisitions.

8.          Delegated authority to the Director of Regeneration to enter into variations of any of the existing joint venture documentation, which is required to implement any of the recommendations, contained in the report.

9.          Delegated authority to the Director of Regeneration to consider the appropriation of land at the appropriate time at Waterloo and Queen Street Estate from the Housing Revenue Account (HRA) to the General Fund, for planning purposes and to consider the appropriation of land at the appropriate time at Waterloo and Queen Street Estate back to the HRA.

10.      Approved the budget of up to £5.0 million to fund the cost of compensation of Appropriation linked to the Waterloo and Queen Street Estate, noting that the HRA capital programme recommended by Cabinet on 17 February 2021, and approved by Full Council on 3 March 2021 includes the necessary capital funding to fund the compensation.

11.      Delegated authority to the Director of Regeneration to make all further changes to the documentation consequent on the recommendations in this report that the Director considers necessary or in his opinion appropriate from time to time