Agenda item

This item is to consider if there is an opportunity to utilise the planed Community Infrastructure Levy to fund regeneration of Elephant and Castle station.

Val Shawcross A.M., Chair of the GLA transport committee, has accepted an invitation to attend and the London mayor’s new transport advisor, Isabel Dedring, has been invited.

6.1  The Chair welcomed Valerie Shawcross, Assembly Member and chair of the GLA transport committee;  Alex Williams, Director of Borough Partnerships, Transport for London ; and Cllr Fiona Colley , cabinet lead for regeneration and corporate strategy.

6.2  The chair invited Val Shawcross, A.M. to speak and she opened by saying that she is very pleased that investment was finally achieved for the Elephant and Castle south roundabout. She went on the say that the tube station needs significant investment, around £200 million, and that will need to be realised from the Lend Lease agreement, TfL, Southwark and developers, however TfL has no spending set aside. The situation could reach stale mate.

6.3  Valerie Shawcross explained that one of the issues is the requirement to aside as much as 50% for contingency but this could be a very inflated figure.

6.4  A member asked if Valerie Shawcross and the Director of Borough Partnerships thought that a Community Infrastructure Levy (CIL) could help. The response was that a CIL could help but not fund the full amount. The CIL could be set aside from a much wider area; there is an argument that the whole ‘opportunity area’ will benefit. It was explained that there are some other difficulties but these could be to be addressed. One of these is the transport interchange needs to be addressed early but the CIL yields funds though the ebb and flow of development. There might therefore need to be a loan for core investment. There will probably still be a funding gap but CIL could contribute more effectively than section 106 arrangements.

6.5  Valerie Shawcross stated that in her view the public sector should contribute to this. She went on to add that if the new London Mayor took a rational look at all the transport projects across London, and did a cost benefit analysis, then Elephant and Castle would do well. She went on to add that in her view the GLA have not done enough for this area.

6.6  The chair asked how this could be pushed up the London Mayor’s agenda and the chair of GLA transport committee responded that a better government settlement would help; this would be a strategic investment for growth and enable more investment.

6.7  A member commented that now the community sees the agreement with Lend Lease has been signed there is a growing expectation that the scheme should deliver.

6.8  The Director of Borough Partnerships explained that he had been working with Southwark. £600 million will be collected across London for Crossrail. He explained that the London Mayor can only set a CIL for transport; however a London Borough can set a CIL for any legitimate infrastructure project. A CIL takes 18 months to implement and there is a requirement that evidence is taken in public. He went on to advise that the amount cannot be set so high that it will inhibit development.

6.9  The Director of Borough Partnerships explained that TfL is actively engaged with the council and Lend Lease. TfL does recognize that it would be a tall order to generate all the investment needed from developers; however the developers should significantly contribute.

6.10  A member asked if funding could come from a combination of CIL, section 106 money and public financing from TfL. The Director of Borough Partnerships explained that there is no funding set aside in the TfL funding plan; investments are political decisions. As it stands that project would need to be solely funded from developers.

6.11  Valerie Shawcross commented that it is easier to leverage in public funds if it is possible to demonstrate investment from developers. The Director of Borough Partnerships added the more the funding gap is narrowed down from £200 million the more realistic it will be to negotiate.

6.12  Cllr Colley, the cabinet member for regeneration and corporate strategy, stated that the council does believe that a CIL is worth exploring for Elephant and Castle, however, while she believed that while Crossrail should get investment, Southwark’s tariff should be set at a lower band.

6.13  The cabinet member went on the state that people want more from the Elephant and Castle development than just transport; however the danger is that all the investment could go on this, even though many of the problems already exist and are not generated by new development. She went on to add that the council is pressing TfL for investment; there is a moral duty and a leap of faith needed for Elephant and Castle. The Director of Borough Partnerships said that TfL want regeneration to be a success, and for that a credible transport solution is needed.  He repeated that investment decisions are political decisions. The Director of Borough Partnerships explained that that the present tube does just about cope, however extra development will tip it over the edge and there will be regular closures. A member asked who is responsible and the Director of Borough Partnerships explained that the law says that if a developer causes the burden then the responsibility lies with them.

6.14  A member asked if public investment in Elephant and Castle would be a strategic investment for London. Valerie Shawcross commented that she had asked the London Mayor for a cost benefit analysis to be done on the recent investment of £120 million for the bicycle scheme and the £50 million set aside for the cable car. This had not been forth coming yet; however she believed that a cost benefit analysis of Elephant and Castle would demonstrate its value.

6.15  The Director of Borough Partnerships and Valerie Shawcross both recommended that Southwark establish a relationship with the newly appointed GLA chief of staff, Eddie Lister.

RESOLVED

The chair, Cllr Mark Glover, recommended that the cabinet:

·  Consider initiating a CIL to secure funding from developers

·  Get back to TfL with a smaller funding gap

·  Ask the council to engage with Eddie Lister, GLA Chief of Staff,  as a matter of urgency