Agenda item

[Report of the Director of Housing, Regeneration and Planning. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]

This report seeks approval for the acquisition of a property located at 3 Shaftesbury Road, N18 1SW (“the Property”), to support the relocation of businesses situated within the High Road West regeneration area.

The Cabinet Member for Finance and Strategic Regeneration introduced this report which sought approval for the acquisition of a property located at 3 Shaftesbury Road, N18 1SW (“the Property”), to support the relocation of businesses situated within the High Road West regeneration area.

The Cabinet Member highlighted that the acquisition of this asset, as outlined in the report, demonstrated a strong commitment by the Council to respond to the needs of businesses and provides the opportunity for them to continue in the local area, supporting the local economy and employment. The Council was committed to working with residents and businesses in delivering High Road West and providing the new Council homes, library and learning centre, commercial and retail space, high quality public realm and community park and community benefits that were required in the area.

In response to questions from Councillor Dennison, the following information was provided:

• The Cabinet Member noted it was not for the Council to consult as to whether the businesses in the Peacock industrial estate agreed to the Council acquiring a site. It was for the Council to ensure that the necessary provisions were there to offer businesses in the area.
• The Cabinet Member recognised businesses would be affected by the proposed changes in the area and the Council was doing all it could to ensure that there were alternative locations to offer affected businesses.
• Regarding offering replacement premises on the same contractual terms, the Cabinet Member noted that would be a discussion between officers and the affected local businesses but would largely be dependent on what was available.

Further to considering exempt information at item 23,

RESOLVED

1. To agree the purchase of the freehold interest in the Property known as “3 Shaftesbury Road, N18 1SW” (and shown edged red on the plan in Appendix 1) for the purchase price [referred to in the exempt part of the report] to be held in the General Fund and agree a total sum (referred to in the exempt part of the report) for the acquisition from the Strategic Acquisitions Budget [this paragraph includes information in the exempt part of the report]
2. To give delegated authority to the Director of Housing, Regeneration and Planning after consultation with the Leader and the Cabinet Member for Finance and Strategic Regeneration, to agree the final contract for the acquisition of the Property.
3. To give delegated authority to the Director of Housing, Regeneration and Planning after consultation with the Leader and the Cabinet Member for Finance and Strategic Regeneration, to agree the disposal of the Property to any businesses affected by the High Road West scheme, on the basis of progressing the objectives of the scheme, including Heads of Terms and final contract for its disposal and any works and fees required to facilitate that disposal.

Reasons for decision

The Council owns approximately a third of the land within the High Road West masterplan area and needs to acquire the outstanding land currently in third party ownership to deliver the wider benefits of the Scheme. The Scheme will address issues of deprivation which affect many residents living in the Northumberland Park ward and north Tottenham more widely. The relocation of existing businesses is therefore a requirement for the land assembly process and ultimately to the success of the wider Scheme.

As set out on the Business Charter, the Council recognises the value of retaining the existing businesses and jobs in the vicinity in order to achieve a robust economic and employment portfolio. The Scheme will include a range of commercial space, which will be available for lease to many of the existing businesses which operate in the area. However, the Council has committed to working with those that cannot be accommodated within the Scheme to identify suitable alternative premises.

Several businesses have communicated that retaining their freehold status is a key relocation requirement, particularly those on the Peacock Industrial Estate, located in the northern section of the masterplan area. There is currently substantial demand for industrial space in London and limited vacancy, and therefore businesses are finding it difficult to secure suitable premises in the surrounding area, particularly freehold land interests.

The acquisition of the Property offers an opportunity for the Council to purchase a suitable site and alter it to suit the individual needs of several local businesses within the Scheme area. The intention is that at least part of the site would be subsequently disposed of to one or more businesses affected by the High Road West scheme. This would respond to the desire by some landowners for freehold property, and extend the support offered by the Council to the local business community. Without Council intervention, it is less likely that businesses would be able to find property suitable for their individual needs, and preference for freehold tenure, within the local area.

While the intention is for the Property to act as a relocation opportunity for those businesses and to primarily support the objectives of the Scheme, the Property represents a strategic acquisition for the Council. Should businesses within the regeneration area not wish to relocate to the Property, the Council would retain the Property as part of its commercial portfolio, generating longer-term revenue income. This would be on an invest to save basis, seeking to intensify the property and furthering the objectives of the Borough Plan and emerging Economic Development Strategy. Property advice indicates that this scenario would result in a net positive financial position for the Council, therefore representing a good value for money investment.

Alternative options considered

Option 1 – Do not acquire the property

The Council has the option to not acquire the property. The Council would continue the land assembly process as set out in the Compulsory Purchase Order Indemnity Agreement (“CPOIA”), to facilitate the delivery of the Scheme. The CPOIA, signed by the Council and its development partner for the scheme, Lendlease, on 20th December 2017, stipulates that the Council secures all third-party land interests within the Scheme, by private treaty through negotiation if possible.

This would involve supporting businesses throughout the regeneration process, helping those who cannot be accommodated within the scheme to identify alternative sites. However, due to a low supply and high demand of industrial land, generally businesses may be unable to find suitable alternative premises without Council intervention and the Council would find it more difficult to support businesses as set out in the Business Charter.