Agenda item

Report of the Director for Placemaking and Housing. To be introduced by the Cabinet Member for Placemaking and Local Economy.

 

Award of contract for main contractor to carry out new homes scheme on former Moselle School site. Approval to appropriate land for Planning purposes and to Appropriate 3rd party interests (eg rights of light).

The Cabinet Member for Placemaking and Local Economy introduced the report which sought approval of the award of a contract to build Phase 1(a) of the Broadwater Farm new homes programme. Phase 1(a) was made up of 40 new homes and one commercial unit on the Former Moselle School Site, Adams Road, N17 edged blue on the plan at Appendix 1.

 

It was noted that the development would comprise 13 one-bedroom flats, 13 two-bedroom flats, 10 three bedroom and 4 four -bedroom homes with four of the two-bedroom flats being fully accessible to wheelchair users. It also included a retail unit. The rent levels of the new units would be in line with the rent policy agreed by Cabinet in December 2021.

 

In response to questions from Cllr Emery, the following information was provided:

 

 

-       In reference to the previous contract that was terminated, this was a pre contract services agreement and was different to this contract agreement which was being sought for approval. The pre contract agreement was explained to be a two-stage contract where you agreed a price for services for the design to be done and then you agree the price with the contractor once they have developed the design. This was a common form of contracting where there was a particularly complex scheme, and it was usual for the original tender to not include a target price that the contractor would be evaluated on. Therefore, the main loss would have been around time spent on the design.

 

 

-       Noting the 40 homes to be built and whether this number was high enough given the number of residents decanted, it was noted that prioritisation of these neighbourhood moves to the new housing would include residents from Northolt and Tangmere Blocks. The Council were in the process of contacting all the former residents. They would be prioritised based on the tenancy start date of their original tenancy and at the point of which they moved into their original home. It was noted that many of these decanted residents had moved off the estate a number of years ago and would be settled in other Council homes and some unlikely to move back.

 

Further to considering the exempt information and exempt recommendations,

 

RESOLVED:

1.          To approve the appointment of Contractor D (identified in the exempt part of the report) to undertake new build works to provide a total of forty (40)

Council rented homes and retail unit at Ground Floor (to shell and core) for a

total contract sum as set out in the EXEMPT Report.

 

2        To approve the appropriation of the Site edged blue on the plan at Appendix 1 from education purposes for planning purposes under section 122 of the Local

Government Act 1972 as it is no longer required for the purposes for which it

is held, and for the purpose of carrying out the development as described in

6.46 and 6.47 of this report.

 

3.         To approve the use of the Council’s powers under Section 203 of the Housing

and Planning Act 2016 to override easements and other third party rights of

the Site which may be affected by the former Moselle School development

under planning permission Ref: HGY/2022/0823.

 

4.         To delegate to the Director Placemaking and Housing, in consultation with the Director of Finance, authority to make payments of compensation as a result of any valid claims of third-party rights affected by the Former Moselle School development and payable as a result of recommendation 3.6, within the

existing scheme of delegation.

 

5.         To approve the appropriation of the Site comprising the land hatched and edged red on the plan at Appendix 1 from planning purposes to housing purposes under section 19 of the Housing Act 1985 after practical completion of the development scheduled for April 2026, in accordance with consent dated 4^th November 2019 as varied by the consent dated 9 December 2021 from the

Department for Education, a copy at Appendix 2. The land is valued at £640,000.

 

6.         To approve the appropriation of the Site comprising the land hatched blue shown on the plan at Appendix 1 from planning purposes to education purposes, in accordance with consent dated 4th November 2019 as varied by the consent dated 9 December 2021 from the Department for Education, a copy at Appendix 2.

 

Reasons for decision

 

In March 2022 85% of those eligible Broadwater Farm residents who voted in

the ballot, supported proposals for new homes on the estate through an estate

wide ballot. These proposals included homes on the former Moselle School site

on Adams Road. The overall masterplan and new homes proposal received

planning consent in December 2022.

 

The former Moselle School was demolished in 2021 and prior to this date had

been empty since 2011 following the construction of a new school next door.

 

The Council had originally planned to deliver the whole scheme through a main

contractor via a two-stage tender. A contractor was appointed under a preconstruction

Services Agreement but unfortunately the Council was unable to

agree commercial terms on the first phase and the contract was terminated in

the summer of 2023.

 

A new procurement strategy was agreed for the new homes programme and

Phase 1(a) was procured individually through an open market process. The procurement strategy for future phases will be determined as the programme

progresses and will be subject to the market conditions at the time.

 

In order to progress the scheme Cabinet is recommended to award the contract

as set out and agree the land appropriations.

 

Alternative options considered

 

The Council could have adopted a different procurement strategy for the site

including procuring all new homes works in one package. The Council did

initially take this approach but it was unsuccessful.

 

The Council could have decided to leave the land for education use. An

assessment of need was undertaken at the time and it was determined that the

land was not required for education purposes.

 

The Council could decide not to develop the land and leave it empty. The

Council has however made commitments to residents and wider stakeholders

to regenerate the estate and this scheme is an important element of this work.

Failure to develop these homes would mean the Council is not delivering on its

commitments as set out in the ballot.

 

The Council could continue with the scheme without appropriating the site for

planning purposes, but this would risk the proposed development 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 is established.

 

 

David Joyce, Director for Placemaking and Housing was commended and thanked for his significant work for the Council over the last 5 years. This was his last meeting before he took up the director role at Tower Hamlets Council in October.