Decision details

The Cabinet Member for Council Housebuilding, Placemaking and Development introduced the report which noted the termination of the Borough Intervention Agreement dated 14 March 2018 (Affordable Housing Cashflow Funding) with the GLA, related to £7.35m recoverable grant payment and sought approval for the reallocation of funds identified to repay this grant funding (£7.35m SDP Land Receipts) to support priority capital projects in Tottenham Hale as well as wider Council priorities.

The Cabinet Member highlighted the following achievements of Tottenham Hale place making:

-       3,200 new homes being built, 40% were affordable, including nearly 700 high quality and sustainable new Council homes, located with direct access to parks and open spaces.

-       A new district health centre; new community hub; a range of good and outstanding local Schools; comprehensive healthy Streets improvements and major investment in green infrastructure including over 400 new trees being planted across our Streets, public spaces and new developments.

-       The building of 35,000sqm additional commercial space, supporting the existing retail and commercial uses in the centre and creating new local jobs and business opportunities.

-       Flagship green and open spaces programmes at Down Lane Park and The Paddock have been shaped with the community, for the community, exemplifying the commitments made to residents through the Haringey Deal.

-       The co-designed masterplan for Down Lane Park would see over £9m investment in new and improved facilities for the community, climate resilience and a new community hub to serve the neighbourhood.

-       The Paddock will have the Borough’s first new Nature Reserve in over a decade, investing in improvements across the site including educational facilities, and incorporating land around the riverine edges to create an additional 1.9 acres of publicly accessible greenspace.

The Cabinet Member added that the decision represented a major investment by the Council in the green and social infrastructure that would make a genuine difference to the lives and futures of Tottenham Hale’s residents. The proposed decision honoured the Council’s commitment to reinvest the proceeds of the sale of land through the Strategic Development Partnership, into securing long term and direct benefits for our residents.

In response to questions from Councillor Hakata and Councillor Cawley – Harrison , the following was noted:

-       The Down Lane project had involved 18 meetings of community groups including youth and disabled resident representation and involved working with stakeholders to improve and redesign the park. This was a co design in action and there was confidence that a good process had been followed.

-       There was 40% affordable housing target had been reached. The Council had acquired a number of Council homes and had strived to achieve as much mixed tenure and to increase amenities.

-       With regards to the Notting Hill Genesis housing project not hitting the milestone dates for the funding and not proceeding to development as planned, it was noted that they had very recently now gone on site and were aiming to complete in late 2025. The context of this outcome was outlined, noting the period for this placemaking dating over a period of 6 years, which had seen a fundamental change in the approach to affordable housing. This arrangement had been first agreed in landscape where there was emphasis on intermediate housing and when there was limited cash flow for housing provision .There was now more funding available from the GLA and the Council had reached a target on affordable homes.

-       That when Notting Hill Genesis had indicated that they would not proceed with the original allocation, the Council considered next steps in the context of the green and open spaces category and returned this funding allocation to enable meeting original commitments made to residents. The Council were satisfied that there was enough funding to deliver on these commitments to place making in Tottenham Hale and the Notting Hill Genesis action had no impact on this.

RESOLVED to

1.            Note the termination of the Borough Intervention Agreement dated 14 March 2018 (Affordable Housing Cashflow Funding) with the GLA, related to £7.35m recoverable grant payment for additional affordable homes at Tottenham Hale (and that the £7.35m SDP land receipts allocated for repayment to the GLA is now no longer required for that purpose). The termination Notice is provided at Appendix 4.

2.            Reallocate the £7.35m SDP Land Receipts in the following order:

a.      In accordance with July 2016 Cabinet Decision as set out in Appendix 1, allocate £5.85m to secure the delivery of priority green and social infrastructure projects in Tottenham Hale including Down Lane Park and The Paddock, in recognition of the strategic importance of these two priority projects to the wider neighbourhood.

b.      £1.5m to be retained corporately.

Reasons for decision

Termination of the Affordable Housing Cashflow Funding BIA

This tranche of Housing Zone Funding was recoverable grant to create 113 additional affordable homes on Notting Hill Genesis’ Ashley House & Cannon Factory development in order to help to achieve the target of 40% affordable housing across the Tottenham Hale Housing Zone. This funding would be repaid to the GLA upon receipt of the equivalent amount of SDP land receipts, under the Development Agreement.

The Council has since achieved the target of 40% affordable housing through our own efforts. None of the grant monies have been received yet and the Notting Hill Genesis development has failed to meet the milestone dates for the funding so the GLA will no longer be providing this funding. This will have no bearing or repercussions for the Council.

In accordance with the Council’s Constitution, exiting the Funding Agreement would normally require a Cabinet Decision, however the GLA has now terminated the Funding Agreement and this should be noted. The capital receipts generated by the SDP have been allocated by Cabinet in prior decisions (see Appendix 1) that support the 2016 decision to reinvest in the Tottenham Hale DCF. Due to the GLA terminating the Funding Agreement the previous decision to allocate £7.35m to the repayment of grant needs to be revisited.

Reallocation of the £7.35m SDP Land Receipts

The prior Cabinet decision in July 2016 determines that this money would be reinvested back into the Tottenham Hale District Centre Framework (DCF) area to enable the delivery of affordable housing and DCF capital works (see para 1.3 and Appendix 1).

The Council has secured over 3,200 new homes at Tottenham Hale as part of the delivery of the DCF, and has bettered the commitments made around affordable housing outcomes with over 40% affordable housing secured including nearly 700 new Council homes.

It is the remaining later packages of DCF Capital Works (green and open spaces and the provision of a permanent community hub - replacing the provision lost at the Welbourne site) which would be at risk if the long term commitments made as part of the DCF were not realised at this late stage. Closing the funding gap to enable flagship green and social infrastructure projects in the Green and Open Spaces Strategy, Down Lane Park and The Paddock, is a major priority for Tottenham Hale and will deliver significant benefit to our residents. The current funding for these projects includes £4.65m of external funding raised, comprising £750k GLA Green and Resilient Spaces Funding and over £3.9m s106.

These projects represent the outworking of the Councils Draft Parks and Greenspaces Strategy, which has three core aims 1) Inclusion 2) Climate Change and Sustainability 3) Quality Parks. They are being delivered in partnership with the community, helping the Council to address multiple strategic priorities and exemplifying the Haringey Deal. They sit in an area of greenspace deficiency and with the planned growth of Tottenham Hale, they are having to work hard and be built to a high standard to accommodate the demands on them. This will support the Council’s Walking and Cycling Action Plan in an area of high deprivation and high childhood obesity. Any revenue implications resulting from these improvement works will be met by existing parks maintenance budgets and supported by engaging residents in active volunteering in the parks in accordance with the draft Parks and Green Spaces Strategy and responding to the Haringey Deal.

The operating costs for the new community hub would be met by the future operator who will be appointed in accordance with the Council’s property and procurement governance arrangements.

Alternative options considered

Return all funds to the General Fund. This option is not recommended as it is not in accordance with prior decisions related to the usage of these funds.

Retain all funds for DCF Infrastructure. This option is not recommended as the £7.35m exceeds the funds required to address the shortfall in priority capital projects in the Tottenham Hale DCF Green and Open Spaces programme: Down Lane Park and the Paddock. The projects in the DCF Streets and Spaces programme are funded and in delivery.

Secure the funding required to deliver the key priority projects and return the remainder to the General Fund.This is the recommendation of this report.