Agenda item

To assist the delivery of additional affordable homes at Hale Village, Tottenham Hale. This report seeks approval to varying the terms of the section 106 agreement to provide for the increased number of affordable homes now granted planning permission to clarify the maximum liability on Newlon Housing Trust for specific section 106 payments and other consequential amendments. This is to facilitate the financial restructuring required to enable construction works on the site to continue and that will include, in the first phases of development, delivering over 500 new affordable homes, offices, and space for a health centre.

RECOMMENDATION: To vary the terms of the section 106 Legal Agreement dated 9 October 2007 relating to Hale Village, Ferry Lane, N17.

The Committee considered a report that sought approval to vary the Section 106 Agreement (S106) attached to the Hale Village scheme.

The Committee was advised that a variation to the S106 was required in order to assist in the delivery of Affordable Housing on the site. The variation proposed would increase the level of Affordable Housing by a further two hundred and thirty-four units, which equated to a total of 52% across the whole site.

In order to secure the Homes and Communities Agency (HCA) investment and the lease of the additional blocks by Newlon Housing Trust, it was proposed that the S106 should be varied to limit the  maximum liability placed on the Newlon Housing Trust to those areas where work had commenced.

The Committee was advised that the proposal put forward did expose the Council to an element of risk; however, on balance the risk of jeopardising the scheme by not taking these measures was considered to be higher.

In response to concerns the Assistant Director Planning, Regeneration and Economy, advised that central Government had taken a share of the equity in the scheme (and others funded in this way) to ensure that as the market improved it would receive a proportion of the increased value. The variations to the S106 proposed would provide flexibility and security for local jobs. 

It was noted that there was a possibility that the Newlon Housing Trust would appeal the S106 agreement in 2011 and the Committee was advised that the Council had considered this and the arguments that might be put forward to counter any appeal.

The Committee discussed the risk attached to this and the merits of asking the Council’s Chief Financial Officer to provide further advice the Committee.  

In response to concerns raised regarding the loss of S106 contributions toward the Broad Lane gyratory system and the impact that this would have upon the wider area, the Committee was advised that other funding had been secured and therefore this would not be jeopardised.    

Councillor Brian Haley, Cabinet Member for the Environment and Conservation, put forward his concerns regarding the proposed changes to the S106 Agreement. He noted that the developer had not completed all the obligations set out within the S106 in a timely manner. He contended that the element of risk that the variation would expose the Council to was unacceptable and as there was no legal required upon the Council to vary the S106 this should not be approved by the Committee.

Councillor Lister arrived at 7.50pm.

In response to a query it was clarified that Councillor Haley was speaking behalf of himself, as the relevant Cabinet Member, rather than representing the view of the Cabinet as a whole on this issue.

The Assistant Director Planning, Regeneration and Economy, advised that comments from the Council’s Chief Financial Officer were not generally included within reports on Planning matters. The report presented had been reviewed by the Director of the Urban Environment and the Council’s Chief Executive and a significant amount of officer time had been spent on assessing the complexities, implications and risks of this.

The Committee discussed the merits of requesting a report from the Council’s Chief Financial Officer further.

It was proposed and seconded that that the decision to vary the Section 106 Agreement that related to Hale Village, Ferry Lane, London should deferred in order that further financial advice, with respect to the risk to the Council, could be sought and the results were as follows:

For: 4* Against: 4 Abstentions: 0

*the Chair used her Casting vote against this motion

RESOLVED:

That the Section 106 Agreement dated 9 October 2007 relating to land at Hale Village, Ferry Lane, London, N17 be varied as set out in the report.