Issue - meetings

[Report of the Director for Planning, Regeneration and Development. To be introduced by the Cabinet Member for Housing and Regeneration.]The Council has agreed with the Head Leaseholder to purchase their interest in 40 Cumberland Road. The Council is the freeholder and occupies the building under a head lease.

The Leader introduced the report which sought approval for the purchase of the head lease for the property at 40 Cumberland Road to provide the Council with an unencumbered freehold interest in the site. The Leader identified that the proposal was important in terms of the regeneration of Wood Green and the need for the Council to have leverage through land ownership in the area.

In response to a question from Cllr Morris, the Leader advised that any decision on the Wood Green section of Crossrail 2 being delayed had not been taken and that the National Infrastructure Commission has made some recommendations on options for scaling back the costs. Further work was required from Transport for London to assess costs and further funding announcements from HM Treasury would be monitored going forward. Final consideration of the route was expected in the summer.

The Leader added that the Piccadilly Line was due to be upgraded to deal with a one-third increase in capacity. Therefore, regardless of Crossrail 2, the transport infrastructure improvements around Wood Green would be substantial, and would support significant economic and housing growth. The Leader advised that the Council would need to be working on the basis that Crossrail 2 would be progressing as planned but with growth and regeneration potential in and around Wood Green, the borough would not be reliant upon Crossrail 2.

RESOLVED

1.    To purchase of the Head Lease of the property located at 40 Cumberland Road as outlined red on the plan attached in Appendix A of the report for general fund purposes for the purchase price and costs set out in Part B of this report and based on the Heads of Terms set out in Part B of this report.

Reasons for decision

The Council are the freeholders of 40 Cumberland Road and also own the freehold of the majority of the adjoining properties in Station Road. The acquisition of the head lease at 40 Cumberland Road will save the Council rent and will also enable the site together with the other Council owned sites to be part of the Joint Venture Company currently being procured.

Alternative options considered

Should the Council not acquire the lease they will continue to pay rent until the end of the lease.  A dilapidations cost would likely to be substantial at the end of the lease.

In the event that the site forms part of future redevelopment proposals of the Joint Venture development vehicle the current head lease interest would then need to be acquired at that time.