Agenda item

Report of the Director of Housing, Regeneration and Planning. To be introduced by the Cabinet Member for Health, Social Care, and Wellbeing.

Cabinet is requested to approve the signing of legal agreements with the Clinical Commissioning Group (CCG) and Healthlink in connection with the delivery of the health centre at the Welbourne Development.

Cllr Diakides entered the meeting at 20.07

The Cabinet Member for Health, Social Care and Well-Being introduced the report which sought approval to enter into a number of lease agreements which were outlined in the report to enable the NHS to provide a modern primary care service including a GP surgery at the new Welbourne Health Centre to open in 2023.

In response to questions from Cllr Hakata and Cllr Barnes, the following was noted:

-       With regards to potential complications, the report and decision, in essence allowed the NHS to draw down funding in order to open the Health Centre. However, in order to complete the fit out, there was a need to have a lease with that entity, before the building was handed back to the Council by the developer. In these circumstances the Council had put in some guarantees to make sure that, if the building was not returned to the Council, in a sensible time frame, there would be financial penalties. The report set out a long-time frame for this handover until 2024 but there were no particular issues to warrant concern.

-       The two tables at 1.1 and 1.2 were referred to and it was noted that the building was very close to completion and had some strong legal agreements in place for securing NHS funding. Once the building was fitted out and ready, these agreements would give way to the standard lease agreements with the usual caveats are in place. There were also some added protections to the agreements to ensure protected as a health provision before the Council by default came back to holding the facility. Also the time frame allowed for the fit out, would help ensure this was completed to meet health centre requirements.

-       Responding to the need to have a backstop agreement for potential delays, this was negotiated in the spirit of partnership. This was as long as possible to minimise any risk that the Council could be incurring with the end date set as 2024 but the fit out expected by the end of 2022.

-       Regarding the risks with the construction market and Covid, the action of NHS partners, and contract with experienced fit out partner, would provide mitigation and there were the usual contingencies in place of budget and timeframe.

-       It was likely that the Health Centre would open in 2023, and the Hale village Primary Care contract provision was in place until such time the Welbourne centre was ready.

RESOLVED

1. To take a long lease for a term of 999 years of the Health Centre area (in shell and core) from Argent Related prior to practical completion of the Welbourne site development; this lease will fall away after practical completion of the Welbourne Centre building as per table 1.1 paragraph 6.11

2. To grant a lease of the Health Centre to HealthLink for a term of 125 years, prior to practical completion of the Welbourne site development and subject to Argent Related granting the Council a lease of the Health Centre unit as set out in 3.1 above.

3. To approve the payments of the rent as set out in table 1.3 of paragraph 6.17 and the premium and fit out costs (in the event that the back stop date of December 2024 is not achieved) also as set out in table 1.3 of paragraph 6.17 and subject to the Council entering into such agreements with the CCG and HealthLink Investments Limited as  required.

4. To give delegated authority to the Director of Housing, Regeneration and Planning after consultation with the Cabinet Member for health, social care and wellbeing and the Cabinet member for finance & Property to agree the terms of each side letters/agreement and the final terms for the lease from Argent Related.

Reasons for decision

During the Council’s public consultation on both the Tottenham Hale District Centre Framework and the Tottenham Area Action Plan (AAP), the provision of a new primary health care emerged as a clear priority for local residents. The Council identified the AAP-designated site, TH10 Welbourne Centre and Monument Way, as the preferred site for this new health facility. Therefore, this decision will enable the Council and CCG to meet that identified requirement and provide a high-quality primary health care facility for local residents.

On 21 March 2017, the Council entered into a Strategic Development Partnership (SDP) agreement with TH Ferry Island Limited Partnership (an Argent Related entity). The agreement contains an obligation for TH Ferry Island Limited Partnership to deliver a health care facility to shell and core standard. Subsequently the Haringey CCG has been awarded capital from capital funding from the NHS in order to support the development of the facility. The funding must be committed within the period ending in March 2022.

Planning consent was subsequently obtained for the development on the Welbourne site which includes 131 Council homes and a shell and core provision for a health centre. This is part of a wider consent for a number of other sites to be developed by Argent Related in the area. It will need to be delivered and occupied first which then allows Argent Related to occupy and dispose of the rest of their developments in Tottenham Hale covered by their planning consent. On 9 May 2019 the Council entered into an Agreement with Argent Related to acquire the 131 Council homes with practical completion due on 31st March 2022 although this is now likely to be September 2022.

Alternative options considered

The alternative is not to sign the side letters with the CCG and Healthlink. This would potentially result in the loss of the NHS funding and the Council holding a shell and core building with no health centre.