Decision details

Approval of grant funding for Kipling Garages

Cabinet noted, with regard to Appendix 1 of the report (a map), that this has since been updated.

RESOLVED:

1.  That it be noted that officers have carried out a due diligence exercise on the Leathermarket Community Benefit Society in connection with the application for funding of a development of 27 new council funded homes at council rents on the Kipling Garages site and that this has informed the officer recommendation to cabinet.

2.  That the Leathermarket CBS business plan be noted and that this shows a viable position over 30 years.

3.  That the draft grant agreement attached to the report be agreed to enable the development of land on the Kipling estate, Weston Street, London SE1 (“the Property”), as shown edged in black on the plan attached at Appendix 1 of the report, by the Leathermarket Community Benefit Society Limited (CBS) to a maximum sum of £9,252,000.

4.  That the director of regeneration be authorised to finalise the detail and enter into the housing grant agreement covering the development of the property.  This is to include the insertion of clauses on letting the new homes at council rents, the council’s normal policies on London Living Wage and social value through for example apprenticeships and requirements relating to the practice of blacklisting’ as set out in the council’s Fairer Future Procurement Strategy.

5.  That it be noted that an interim payment of £347,997.60 was made to Leathermarket CBS in December 2015 to allow the development of the scheme to continue. This takes the total council funding (including S106) to £9,661,815.

6.  That the release of £3,033,635.40 from the council’s housing investment programme (HIP) as part funding of the scheme be authorised.

7.  That it is intended that the council’s planning committee will receive a report requesting the release of Section 106 monies to part fund 65 % of the scheme be noted.