Decision details

 

The Cabinet Member for Housing, Regeneration and Planning introduced the report, which set out the next steps for developing a leaseholder offer for Love Lane leaseholders.

 

The Cabinet Member advised that the Council had received legal advice that the consultation on the leaseholder offer for Love Lane leaseholders had two challenges and there was a need to re-consult on the leaseholder offer. Therefore, the report was seeking approval to re- consult and also seeking a delegation to the Strategic Director of Regeneration, Planning and Development and the s151 Officer to agree all third party acquisitions (including all acquisition prices, costs, compensation packages and fees) within the High Road West Regeneration area (other than any compulsory acquisitions).

 

The Cabinet Member emphasised that the Council had been working hard with leaseholders on the offer and remained committed to continuing this work.

 

In response to questions from Cllr Engert and Cllr Brabazon, the following information was noted:

 

• In relation to the requirement to re-consult, it was important to note the significant and wide officer effort involved in planning, organising and delivery of consultation. However, as this process often involved complex legal issues, sometimes issues could emerge later on.

 

• With regard to the constitutional question raised on the delegations to the director, this recommendation was required to provide necessary authority for the Council to negotiate private treaty agreements and CPO action was only a last resort. Paragraph 5.3 of the report further demonstrated that there were a significant number of property interests within the High Road West area, which were anticipated to be above £500,000 and as such, a Cabinet decision would be required for every acquisition. Given that each Cabinet decision had up to a three-month lead in process, seeking Cabinet approval would not only cause time delays, it would also considerably congest the Cabinet agenda. It was absolutely the case, to ensure the successful delivery of the Scheme, Officers needed to be able to negotiate and finalise transactions in an expedient manner so that third party interests are happy to transact with the Council. The Monitoring officer also confirmed that, as this was a delegation from Cabinet, it did not require a change to the Constitution and consideration at Standards Committee.

 

• The Cabinet Member emphasised that the consultation needed to be re – run to provide clarity on two issues. Firstly, to set out why the commitments within the offer are the Council’s preferred set of commitments. Secondly, to clarify the definitions of resident and non-resident leaseholder in the Love Lane Offer and to be aligned with the definitions set out in the Leaseholder Guide (agreed by Cabinet in 2014).

 

• With regard to the accessibility of the consultation documentation, this was felt appropriate, considering there were complicated issues and movement of funds to be explained. However, the Cabinet Member offered to liaise with the Council Communications team about further ways to improve the understanding of the consultation documentation by leaseholders and tenants. It was important to note that the consultation documentation had not been solely relied upon and there had been workshops held with Love Lane leaseholders, supported by interpreters and the Independent Tenant and Leaseholder Advisor to ensure leaseholders were fully informed.

 

• In relation to the costs of the replacement homes for the High Road West leaseholders, officers will be working with leaseholders and tenants on the design of the new homes and on the design of services within the homes. Officers would be working closely with residents to ensure that they acquire the services they need and that these are affordable. Officers would work through the type and level of services that tenants/ leaseholders want to have. It is only by actively working through this process that officers would gain a better understanding on the level of the service charges, they would communicate the costs, as, and when, they were received, to allow leaseholders to make informed decisions. It was noted that Insurance policies would be the responsibility of leaseholder.

 

• The new consultation was envisaged to take place after the purdah period and officers would be speaking to the new administration on the timing of this. Indeed, it was important to maintain the momentum created with leaseholders in the previous consultation and getting the leaseholder offer agreed as soon as possible to help leaseholders make decisions.

 

 

• In relation to acquisitions on High Road West and delivery of the High Road West scheme, there were a number of negotiations but no acquisitions yet. Officers had instead, been focusing on acquiring the third party land interests required to deliver White Hart Lane station, which was being supported through Mayors Regeneration Funding. It was explained that having a delivery partner in place for High Road West, would help progress negotiations with landowners within the site.

 

 

Further to considering the exempt information at item 26,

 

RESOLVED

 

1. To consider the rationale set out in paragraphs 6.12-6.17 and agree that:

 

a.    the Council undertakes a new consultation on the proposed Love Lane Leaseholder Offer and;

b.    That a further report be presented to Cabinet for decision following that further consultation.

 

2.  To agree the acquisition of all third party land interests within the boundary of the High Road West Blue Line Plan within Appendix 2 (other than any compulsory acquisitions), to be acquired by private treaty by the Council pursuant to the terms of the Compulsory Purchase Order Indemnity Agreement (“CPOIA”) dated 20 December 2017, to facilitate the High Road West Regeneration Scheme and gives delegated authority to the Strategic Director of Regeneration, Planning and Development and the section 151 Officer to agree the final price (including the land price, costs, compensation and fees) to be paid for each third party land interests provided that the total sum to be spent on these acquisitions shall not exceed the sum referred to in the approved capital programme and mentioned in paragraph 8.6.

 

Reasons for decision

 

Recommendation 1

 

From November 2017 through to January 2018, the Council spent two months working with and engaging leaseholders on the Love Lane Estate on a Leaseholder Offer. The Council’s ambition has been to work with resident and non-resident leaseholders to develop an offer, which allows all resident leaseholders to remain in the High Road West area and to ensure all leaseholders are not financially worse off.

 

Following this engagement, the Council formally consulted on an Enhanced Leaseholder Offer, which sought to deliver the following enhancements from the ERRPP for resident leaseholders:

 

·         A further rehousing option for leaseholders referred to as a leasehold swap;

·         An enhanced equity share offer which tackles concerns regarding affordability and allows resident leaseholders to access a new home within the regeneration area; and

·         A12 month grace period for family members/ beneficiaries which tackles concerns regarding succession

 

Through undertaking this consultation, it has become apparent that the consultation material was flawed in two respects. Firstly, it did not explain clearly, why some aspirations of leaseholders have been included in the offer and why some have not. Secondly, it did not explain that the definition of a resident leaseholder in the Love Lane Offer aligned with the definitions set out in the Leaseholder Guide (agreed by Cabinet in 2014) and as such is more restrictive than that in the ERRPP.

 

Officers therefore recommend that the Council, redraft the consultation materials and re-consult to ensure leaseholders are fully and properly consulted.

 

Officers advise that the Council employ an independent financial advisor ahead of undertaking the consultation to advise leaseholders how the proposed offer will affect them.

 

Recommendation 2

 

The Council entered into a Development Agreement and a CPOIA with Lendlease on 20 December 2017. These legal agreements set out the obligations on each party in relation to the delivery of the Scheme.

 

A key obligation on the Council is to secure all of the third party land interests within the Scheme, circa 100 interests, by private treaty if possible. To secure these land interests the Council will be utilising a combination of Housing Zone funding and borrowing. All costs the Council will incur will be reimbursed through the CPOIA with Lendlease.

 

At present, the Council’s constitution requires that any acquisitions that exceed a £500,000 price should be agreed by the Council’s Cabinet, acquisitions between £250,000 (and under) or less than £500,000 can be approved by the Strategic Director of Regeneration, Planning and Development.

 

In order for the Council to be able to acquire all of the interests in a timely and efficient manner, it is recommended that the Cabinet grant delegated authority to the Strategic Director of Regeneration, Planning and Development and s151 Officer to agree all third party land acquisitions (including all acquisition prices, costs and compensation) that the Council needs to acquire within the High Road West area pursuant to the CPOIA.

 

All land acquisition prices, costs and compensations will be based on a valuation report from a RICS registered value and will be based on the commitments set out in the High Road West Business Charter and the Compulsory Purchase Order Code.

 

Alternative options considered

 

Leaseholder Offer

 

Officers have considered not undertaking another consultation with leaseholders on the Love Lane Estate, but have discarded this option. This is because it is clear that the engagement and consultation were flawed as set out above.

 

Delegated authority for the acquisition of properties within the High Road West area

 

Officers have considered not seeking delegated authority to the Strategic Director of Regeneration, Planning and Development and the s151 Officer to agree the acquisition of all third party land interests equalling or exceeding a capital value of £500,000 (including the price, costs and compensation) and relying on the delegations within the Council’s constitution to make acquisitions.

 

There are a significant number of property interests within the High Road West area, which are anticipated to be above £500,000 and as such, a Cabinet decision would be acquired for every acquisition. Given that each Cabinet decision has a three-month lead in process, seeking Cabinet approval will not only cause time delays, it will also considerably congest the Cabinet agenda. It is absolutely the case that to ensure the successful delivery of the Scheme, Officers need to be able to negotiate and finalise transactions in an expedient manner so that third party interests are happy to transact with the Council. For these reasons, this option has been discounted and Officers are seeking delegated authority.