Neil Stubbings the Director of Regeneration Programme Delivery, presented the report to Cabinet.   There are two parts to the report, a public report and an exempt report. 

Cabinet considered the position in September 2020 and this report is a further update of the current position regarding the regeneration of Bridge Close.

The Council’s over-arching vision for setting up the Joint Venture was to facilitate the regeneration of a strategic area of Romford as part of a wider initiative to invest in the renewal of key town centres and estates in order to deliver truly affordable homes for local people and to benefit from the generation of social value, including jobs, apprenticeships and increased local spend.

A further objective for setting up the Joint Venture was to facilitate the delivery of high-quality public realm, design and wider place-making, with the scale and quantum of development to serve as a beacon for wider development and regeneration activity within the town centre.

Following a review of options, it is now recommended that the Council delivers the regeneration of Bridge Close directly (Option 3 – Council funds and builds all three phases itself), funding the development entirely through Council resources, predominantly using the Housing Revenue Account. This version of the scheme differs from the previous version in that the percentage of affordable housing is increased from 30% to 50%. Full detail was considered by Cabinet and contained within the exempt appendix.  There was no further discussion and Cabinet did not move into closed session.

Cabinet:

1.     Approved the continued use of the existing budget related to the 2019-20 BCR LLP Business Plan to fund 100% of project expenditure, given that the Council has full control of BCR LLP and is responsible for all investment in the regeneration scheme, on a temporary basis, until, if approved, Recommendations 2-4 can be fully implemented ;

2.     Approved the adoption and utilisation of Option 3 - the Council to fund and deliver all  phases of the regeneration of Bridge Close, funded via the appropriate use of the Housing Revenue Account, as set out in the exempt part of this report;

3.     Approved the provision of a budget to enable Option 3 to be funded as required and detailed within the exempt Financial Implications and Risks section (see paragraphs 11.22 to 11.36); 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 and that this be recommended to Council for final approval.

4.     Approved the transfer of the existing investment in BCR LLP and the associated debt from the General Fund to the Housing Revenue Account when appropriate, as set out in paragraph 11.32 in the exempt part of this report, noting that consequent changes will be made to the General Fund Medium Term Financial Strategy to reflect the adoption of Option 3 in Recommendation 2 above, at the appropriate time;

5.     Authorised the Director of Regeneration to update the Bridge Close Regeneration LLP Business Plan to reflect the proposed changes to the funding and delivery arrangements, noting that the Business Plan will be subject to Cabinet review within the next six months;

6.     Noted the approval by the GLA’s Housing Zone Steering Group for the early release of grant funding, subject to the negotiation of a new Borough Intervention Agreement;

7.     Authorised the Director of Regeneration, acting in consultation with the Monitoring Officer and the Section 151 Officer, to negotiate and agree terms with the Greater London Authority for a new Borough Intervention Agreement to enable the early release of grant funding for the regeneration of Bridge Close;

8.     Authorised the Director of Regeneration to secure the reappointment and appointment of the necessary supporting professional team by the Council or through BCR LLP, as appropriate, and that the contract rules and contract standing orders be waived to the extent necessary to facilitate this;

9.     Authorised the Director of Regeneration to complete and arrange for the submission of an appropriate planning application via Bridge Close Regeneration LLP to provide for the regeneration of Bridge Close, when appropriate;

10. Authorised the Director of Regeneration to (1) undertake soft market testing to establish main contractor  interest in the project and (2) to prepare a full tender pack to facilitate any subsequent procurement exercise when appropriate, noting that any future contract award will be subject to formal approval;

11. Authorised the Director of Regeneration, acting in consultation with the Monitoring Officer and Section 151 Officer, having regard to Section 12(1) of the Housing Act 1985, to seek Secretary of State’s consent to provide and maintain such non-housing buildings and land  that will serve a beneficial purpose in connection with the proposed new housing accommodation, when appropriate;

12. Authorised the Director of Regeneration, acting in consultation with the Monitoring Officer and Section 151 Officer, to negotiate, finalise and enter into all necessary legal agreements, to bring into effect the proposed arrangements set out in Recommendations 1-11 inclusive.