Issue - meetings

To approve Phase 2 of Ledbury Estate Renewal Section 8-12

RESOLVED:

That the following recommendations be approved:

That the Executive;

1. Approves the variation of the Ledbury Estate Regeneration Contract with Higgins Partnerships 1961 PLC (Higgins) by a total of £35,375,849, from a current contract value of £179,960,999, to a revised contract sum of £215,336,848 (see paragraphs ?90 to ?106 for details) in order to meet both contractually required inflationary uplifts and comply with legal requirements as mandated by the Building Safety Act 2022.

2. Approves the use of £36,950,000 time-limited Right to Buy receipts to fund the works costs for the 65 originally designated private sale homes (20 in Phase 1 and 45 in Phase 2) to become council homes for social rent (see paragraphs ?90 to ?106 of the report for details).

3. Approves several additional variations, including changes in sequencing, changes required to meet building safety regulations and updates to drawing and tenure schedules underpinning the contract as outlined in paragraphs ?42 to ?42.5 of the report.

4. Approves, subject to approval of Recommendation ?2, a minor revision to the approved Local Lettings Plan to account for the additional 65 council homes for social rent that will be allocated in accordance with the other council homes for social rent (see paragraphs ?120 to ?122 of the report).

That the following recommendations be noted:

That the Executive;

1. Notes that by Approving Recommendation ?2, the overall impact on debt to the HRA is reduced as outlined within the closed report as well as delivering a range of financial and non-financial benefits as outlined between paragraphs ?98.1 to ?98.5.

2. Notes the increased grant from the Greater London Authority for all of the originally designated council homes for social rent delivered in Phase 2, being 215, by an additional grant allocation of up to £27,875,000, comprising £26,875,000 from the enhanced grant rate for 215 Phase 2 social rented homes and £1,000,000 already approved for four phase 1 homes converted from shared equity to social rent as set out in paragraphs ?108 to ?115 of the report.

3. Notes that by approving Recommendation ??1, the Executive is approving the start of the main construction works for Phase 2 of the Ledbury Estate Renewal by choosing not to enact the second and final unilateral break clause contained within the Ledbury Estate Regeneration Contract with Higgins.

4. Notes the anticipated Start on Site date of October 2026 for Phase 2 and associated benefits as outlined in paragraphs ?35 to ?37 of the report.

5. Notes that variation to contract will be undertaken via a Deed of Variation which will vary the Ledbury Estate Regeneration Contract in line with Recommendations ?1 and ?3.