Issue - meetings

[Report of the Interim Assistant Director for Economic Development and Growth. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]

To revise the terms previously agreed by Cabinet in February 2013 and February 2015 for a disposal of the Red House site, 423 West Green Road, N15, to Paul Simon Magic Homes in order to enable the acquisition by the Council of homes within the proposed redevelopment for retention as social rented Council housing, with the associated creation of public open space and enhanced community buildings on the site.

The Cabinet Member for Finance and Strategic Regeneration introduced the report which recommended the disposal of the Council’s freehold interest in The Red House, 423 West Green Rd N15, to Magic Living Ltd, part of Paul Simon Magic Homes Group (PSMHG), and the acquisition by the Council of the freehold interest in two blocks of property comprising 46 new-build homes within the proposed site development, as well as open green space. The report set out the agreement by the Council to acquire homes within the site redevelopment for retention as social rented Council housing towards achieving the priority of 1000 new Council homes over the Borough Plan period.

The Cabinet Member highlighted that the wider project on the site would also deliver private homes in support of the Council’s overall obligation to meet housing supply targets set for the borough under the Mayor’s London Plan. The heads of terms would allow for profit share (overage) payment to the Council if the private sale units exceed sales prices assumed in the Planning viability study.

The Cabinet Member informed the meeting that Officers had worked within benchmarks for affordable housing provision and was pleased to note that the social housing was supported by the Mayor of London’s affordable housing programme grant.

The Cabinet Member noted the scheme would not only count towards the Council’s 1,000 social rented housing priority but would also help tackle the housing long waiting list and create savings in the cost of providing temporary accommodation to families as well as assist in tackling homelessness in the borough. The scheme was compliant with the Council’s Budget and Policy framework as set out in part 4, section E of the Constitution, and the housing funding element of the project is part of the Council’s budget setting process which was the subject of a Council decision in February 2019.

In response to questions from Councillors: Gordon, Davies, das Neves and Barnes, the following information was noted:

• Regarding how quickly the homes could be built, the Cabinet Member confirmed that these would be completed within 3 years, by 2022.
• In relation to the revised terms of the agreement, the Cabinet Member noted this allowed the Council to acquire the 46 properties intended for Council rent with the freehold of the land for these properties and the green space. The previous scheme had included only 30 units under shared ownership terms.
• With regards to the value of the land, this normally decreases when adding social housing.
• In response to the potential for the developer land banking, Officers advised that the terms on which the Council agree to sell the land would include clauses such as longstop dates for completion of the homes and binding the developer to develop directly, thus protecting the Council from land banking or onward sale of the land to another party.
• Regarding the procurement, the Cabinet Member advised that this was in the exempt part of the report and that this could not be commented on in the public  ...  view the full minutes text for item 192