11 Leathermarket Grant Agreement
To approve the overarching grant agreement with Leathermarket Community Benefit Society (CBS) to deliver 161 council homes and also approve the project grant agreement for the delivery of individual projects outlined in the overarching grant agreement.
Councillor Leo Pollak presented the report to cabinet.
1. That the overarching grant agreement with Leathermarket CBS to deliver 161 council homes be approved.
2. That the project grant agreement for the delivery of individual projects outlined in the overarching grant agreement be approved.
3. That the approval of the grant following this report be delegated to the strategic director of housing and modernisation in consultation with the strategic director of finance and governance.
4. That it be noted that the council will own these properties and residents will be signed up on council tenancy agreements.
5. That it be noted that Leathermarket JMB will be ring-fencing the net rental income from the additional homes provided at Marklake Court and further schemes proposed for the first 10 years, which will bring additional benefits to the council and wider community, estimated at nearly £14m.
6. That it be noted that a separate agreement will be drawn up to agree the ring-fencing of this income, its use and including claw back mechanism by the council.
7. That it be noted that approximately £2m of this will be used to reduce the costs to the development programme.
8. That it be noted that the remaining £12m will be used to deliver an estimated additional 30-35 council homes. With the income accumulated from the new homes being used to start 10 of these homes by 2026/7.
9. That it be noted that the grant of £12,897,245 construction costs plus £2,904,245 professional fees and contingency will be given under the delegated approval to complete the work started on the Joseph Lancaster estate to deliver 40 council homes.
10. That it be noted that the council will receive £4,000,000 of Council Homes for Londoners Grant for the successful delivery of these homes at Joseph Lancaster.
11. That it be noted that an additional grant will be required to remediate the ground condition of the Joseph Lancaster site, following recent asbestos discovery. To date, no archaeological finds have been discovered that may adversely influence programme and/or costs.