Issue - meetings

[Report of the  Director for Planning, Regeneration and Development. To be introduced by the Cabinet member for  Housing , Regeneration and Planning.] Following Cabinet's approval in November 2015 to proceed with an OJEU competitive dialogue process (which commenced in January 2016), to approve the recommendation for a preferred bidder with whom the Council will form the Haringey Development Vehicle as a joint venture, subject to further negotiation and a final decision to create the HDV later in 2017.

The Cabinet Member for Housing, Regeneration and Planning introduced the report which set out the outcome of the Competitive Dialogue procurement process under the Public Contracts Regulations 2015 to procure an investment and development partner with which to establish the Haringey Development Vehicle (‘HDV).

The Cabinet Member provided some context to this procurement decision which was the desperate need for housing both locally and nationally. He further highlighted the strategic analysis demonstrating the need for different types of housing to deal with the housing crisis. The Cabinet was committed to not managing decline and was not simply going to accept the effects of the housing crisis but wanted to build new homes and also improve existing Council housing together with providing good employment opportunities for residents.

 It was also important to consider the financial ability of the Council to build the large number of homes needed given the government had withdrawn £160 million from the Council and restricted how the Council spends housing money. It was evident, when considering all other London boroughs positions, that there was not any money for Councils to build a significant number of homes without support.

Members and officers had worked hard, through the Future Housing Review to bring forward options, for increasing housing in the borough. This group had considered a range or working models to increase the availability of housing such as wholly owned Council companies which were actually building fewer homes. They also considered other standard models but as the Council owned land on the housing sites, the Haringey Development Vehicle option offered the better option for the development .This model also ensured the Council could have a share of the profits and be able to reinvest this in community facilities and existing housing whilst maintaining control over the development.

Cabinet’s consideration of the Haringey Development Vehicle had started in February 2015 and the procurement process instigated by Cabinet in November 2015. The Cabinet Member felt that this had been a good thorough process, resulting in a strong preferred bidder coming forward.

If the bidder was approved, there would follow a five month process to finalise the final agreement on the terms of the  Haringey Development Vehicle. The Cabinet Member reiterated that he would be working hard to get a good deal for residents during this 5 month period.

The Leader invited questions from Members and the following issues were raised:

• Assurance that Council rented homes would not decrease in favour of shared ownership properties,
• Would the construction exclusivity agreement with Lendlease incentivise them to act in a beneficial manner with Council?
• Charge from Lendlease for their expertise?
• Halting the procurement process.
• Independent tenants and leaseholders survey which indicates that that there is little knowledge of the Haringey Development Vehicle
• Providing tenants in the housing estates, potentially affected by demolition and decanting, with new homes on the new estate and with a secure tenancy at target rent.
• Whether it was made clear to Lendlease, during the procurement process, that they will  ...  view the full minutes text for item 184