Agenda item

To consider the proposal by Rozbelle the applications for a variation of the current s106 agreement for the development at Furnival House, 50 Cholmeley Park as agreed in September 2010. No other changes to the planning permission are sought.

The Committee considered a report, previously circulated, which set out the proposal for a variation of the existing Section 106 agreement for the development at Furnival House, 50 Cholmeley Park, N6 as agreed in September 2010. The Committee was advised that the final sentence of paragraph 5.3 of the report should be amended to read “The Transportation contribution will remain the same as existing”.

The following points were raised in discussion by the Committee:

• This was a matter for the Committee’s determination as it related to a planning agreement between the Council and the applicant.
• The Committee needed to determine whether the change in the scheme’s viability warranted the proposed reduction in s106 contributions.
• The Committee’s legal advisor reported that that the viability assessment submitted by the applicant had been assessed by the Council’s officers and also by an independent expert to verify the information supplied.
• The return indicated in the viability assessment was significantly lower than the standard expectation of 15-20%, and the viability of the scheme was assessed as marginal.
• It was the view of Council officers that allowing the reduction in the s106 agreement would increase the likelihood of the scheme going ahead, and it was on this basis that the recommendation of the report was that the proposal be approved.
• There had been a material change in circumstances since permission for the scheme was granted, in that works to Listed Buildings were no longer exempt from VAT.
• It was confirmed that the reduction in s106 would reduce the amount of social housing that could be provided, but local and national policy did not permit s106 obligations and the issue of viability to prevent otherwise deliverable schemes from coming forward for development.
• The Committee expressed concern that details of the viability assessment had not been made available for the Committee to examine, in order to make a decision on the basis of all the relevant information, and it was agreed that a public summary of such information should be included in such reports in future. Members were also reminded that they could view the full information by arrangement with the Planning officers and by agreeing to sign a confidentiality agreement.
• The Committee was advised that all s106 agreements were registered as land charges and would transfer with ownership in the event of sale.
•  In response to a question from the Committee, it was reported that, were the scheme coming forward for initial approval at this time, a total s106 contribution of approximately £1.2m would be recommended by officers.

Cllr Bevan spoke in objection to the application in his capacity as Cabinet Member for Housing. Cllr Bevan expressed concern that the proposed reduction in s106 contribution would result in three fewer social houses being provided. Cllr Bevan stated that market evidence demonstrated that there had been no reduction in sale values for similar properties, and that his experience in dealing with Homes for Haringey had shown that building costs had in fact reduced in recent years.

The applicants addressed the Committee to advise that they had spent a number of years trying to bring the scheme forward, and that building costs had increased, while sales values had decreased, and there was the additional impact of the new VAT charge on works to listed buildings. It was reported that the viability of the scheme was very tight, and that reducing the s106 contribution would make the difference between the scheme happening or not.

Marc Dorfman, Assistant Director, Planning, Regeneration and Economy, summarised the discussion, and suggested that, were the Committee unwilling to accept the recommendation of the report, a decision be made to defer the report in order to enable some of the issues raised to be further addressed.

Cllr Rice moved that the report should be deferred in order to enable Members to see the appropriate information and to therefore discharge their duty fully on the basis of all the relevant facts. This motion was seconded by Cllr Hare, but fell when put to the vote. The Chair then moved the recommendation of the report, and on a vote this was carried.

RESOLVED

That the variation to reduce the contributions to the existing s106 Agreement attached to planning permission HGY/2010/1175 for the development at Furnival House, 50 Cholmeley Park, be agreed.