Agenda item

Report of the Director for Housing, Regeneration, and Planning. To be introduced by the Cabinet Member for House Building, Place-Making and Development.

The report will ask Cabinet to approve the letting of a build contract in relation to the construction of affordable housing at the Chocolate Factory, N22 (Phase 1). It will also request the appropriation of the land for planning purposes, approval to exercise powers under s203 of the Housing and Planning Act 2016, and appropriation of the land for housing purposes upon Practical Completion.

At this point in the meeting, Cllr Diakides left the room.

The Cabinet Member for House Building, Place-Making and Development introduced the report which asked Cabinet to approve the letting of a build contract in relation to the construction of affordable housing at the Chocolate Factory, N22 (Phase 1). The report also requested the appropriation of the land for planning purposes, approval to exercise powers under s203 of the Housing and Planning Act 2016, and appropriation of the land for housing purposes upon Practical Completion.

The Cabinet Member explained that this project was a key milestone in the Council’s housebuilding programme and would provide 80 Council rent homes. It was stated that the project would be renovating a derelict site, would provide homes and workspaces, and would also contribute to the regeneration of the area.

The Cabinet Member responded to questions from the Cabinet:

-       It was noted that Area 51, a group supporting young people and adults with disabilities, was located at Mallard Place. It was confirmed that there would be ongoing discussions with Area 51 who would be part of the process as the comprehensive scheme was developed. It was noted that solutions were being investigated and it was acknowledged that relocating this group would be long and detailed process.

The Cabinet Member responded to questions from Councillor Cawley-Harrison:

-       In response to a question about development in the local area and pressure on services, it was explained that there would be a comprehensive approach for the Wood Green Cultural Quarter and that any required services would be considered holistically.

-       In response to a question about when the homes would become habitable, it was noted that the build programme for this project was anticipated to be two years but that it may be possible to deliver slightly earlier.

Following consideration of the exempt information, it was

RESOLVED

1.    To approve the appointment of the recommended Contractor (identified in the exempt part of the report – Appendix 3) to undertake the new build works for the scheme known as the Chocolate Factory Phase 1 for a contract sum set out in Appendix 3. Please refer to paragraph 16 of Appendix 3

2.    To approve the appropriation of the land at the Chocolate Factory site (edged red in the plans attached at Appendix 2) from general purposes to planning purposes under Section 122 of the Local Government Act 1972 as they are no longer required for the purpose which they are currently held, and for the purpose of carrying out development as set out in section 6 of this report.

3.    To approve the appropriation of the land at the Chocolate Factory site (edged red in the plan attached at Appendix 1) from planning purposes to housing purposes under Section 19 of the Housing Act 1985, after practical completion of the construction works.

4.    To approve the appropriation of the land at the Chocolate Factory site (edged red in the plan attached at Appendix 1) from the General Fund to the HRA (at practical completion of the construction works) at the value of £500,000.00; representing the apportioned purchase and associated acquisition costs of the Chocolate factory site.

5.    To approve the use of the Council’s powers under Section 203 of the Housing and Planning Act 2016 to override easements and other rights of neighbouring properties infringed upon by the Chocolate Factory Phase 1 development under planning permission Ref: HGY/2017/3020 and by the subsequent s96a amendment to this permission, under planning Ref: HGY/2021/0624.

6.    To delegate to the Director of Housing, Regeneration and Planning, after consultation with the Director of Finance and the Cabinet Member for House Building, Placemaking and Development authority to make payments of compensation as a result of any infringement arising from the development and the recommendation 3.1.3, within the existing scheme of delegation.

7.    To note a total scheme-to-completion cost is contained at Appendix 3.

Reasons for decisions

The acquisition of the head leases held by Workspace over Council owned freehold land at the Chocolate Factory site and the neighbouring Mallard Place site were approved by Cabinet in October 2020. The intention was both sites would ultimately enter the Council’s housing delivery programme, with the Chocolate Factory Phase 1 progressing first as it already had an extant planning consent. A s96a planning amendment has subsequently been approved to facilitate the development of the site (given the Council is acquiring part of the wider Chocolate Factory site with Workspace developing the rest).

Completion of the acquisition of the two head leases took place on 10^th February 2022.The Council’s site (known as the Chocolate Factory Phase 1) is now ready to progress to construction, with priority given to commencing development of the affordable housing. This report therefore marks the second, and final, Member-led decision to develop this site for social housing.

Following a formal tender process, a contractor has been identified to undertake these works.

The head leases will be merged with the freehold title which is held in the General Fund and appropriation of the Chocolate Factory Phase 1 site for planning purposes is required as it will allow the Council to use the powers contained in section 203 to override easements and other rights of neighbouring properties and will prevent injunctions that could delay or prevent the Council’s proposed developments. Section 203 converts the right to seek an injunction into a right to compensation. The Chocolate Factory Phase 1 site will need to be appropriated back from planning purposes to housing purposes on completion of the development to enable the Council to use the land for housing and let eighty new Council homes at Council rent.

The development of new Council homes and affordable workspace at the Chocolate Factory Phase 1 will also serve as the Council’s first direct delivery project to contribute towards the objectives and ambitions of the ‘Wood Green Cultural Quarter’, a Council-led plan to coordinate the regeneration and economic development of the area to the west of the High Road in Wood Green

These recommendations are also necessary at this time to support the Council’s ambition to achieve 1000 starts on site before the end of March 2022, with GLA grant funding for the site also being contingent upon achieving a start on site by this date.

Alternative options considered

It would be possible not to develop the Chocolate Factory Phase 1 site for housing. However, this option was rejected as it does not support the Council’s commitment to deliver a new generation of Council homes and considering the rationale behind Cabinet’s decision to acquire the head leases in the first place.

This opportunity was procured via a competitive tender using the Westworks Development and Construction Dynamic Purchasing System. The Council previously issued a tender via the London Construction Programme (LCP Major

Works 2019 Framework Agreement, the recommended route for a contract of this value, but this resulted in only a single tender being returned, which did not meet the Council’s requirements, principally in relation to the construction cost. The choice of an alternative framework was considered and ultimately utilised only after first testing the Council’s own procurement framework.

The Council could continue with the scheme without appropriating the site for planning purposes, but this would risk the proposed developments being delayed or stopped by potential third party claims. By utilising the powers under Section 203 of the Housing and Planning Act 2016 (HPA 2016), those who benefit from third party rights will not be able to seek an injunction since those rights or easements that are overridden are converted into a claim for compensation only. The Council recognises the potential rights of third parties and will pay compensation where a legal basis for such payments I established.

When seeking planning permission, Workspace actively engaged with local residents about the development of these sites as they proceeded through the feasibility and design stages and any comments or objections raised were taken into consideration by Planning Committee in reaching its decision. The Housing Delivery Team has also engaged with Ward Members and the Lead Member for Housebuilding, Place-making and Development, and ensured local stakeholders have been briefed on the progress of the scheme since becoming involved with the project. For these reasons, this option was rejected.

The Council could decide not to appropriate the land for housing purposes upon practical completion of the building works. This option was rejected because it could prevent the Council from being able to offer up these homes for occupation as social housing thereby not supporting the delivery of much needed affordable homes.

Cllr Diakides did not take part in the discussion or voting on this item and re-entered the room at the end of the item.