To agree funding for the delivery of 40 new council homes
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 40 new council funded homes at council rents on the former Joseph Lancaster Nursery Site and that this has informed the officer recommendations to cabinet.
2. That the Leathermarket CBS business plan (at Appendix 2 of the report) be noted and it also be noted that it shows a viable position over 30 years based on the council’s financial support.
3. That the strategic director of housing and modernisation be authorised to enter into negotiation on an Agreement for Lease and grant of a long leasehold interest of the Land on the Joseph Lancaster Estate, Deverell Street, London SE1 (“the Property”), as shown edged blue on the plan attached at Appendix 1 of the report, with the Leathermarket Community Benefits Society (CBS) on the same basis as agreed for the first development site: undertaken by the CBS at Kipling Garages and that any variations be delegated to the Strategic Director of Housing & Modernisation to agree and subject to reaching agreement on the conditional matters set out in decision 6 below.
4. That the strategic director of housing and modernisation and strategic director of finance and governance be authorised to enter into negotiation on a funding agreement through either a loan or a Housing Grant Agreement to a maximum sum of £12,163,234, to enable the development of land on the Joseph Lancaster Estate, Deverell Street, London SE1 (“the Property”) by the Leathermarket Community Benefit Society Limited (CBS) and that any variations be delegated to the Strategic Director of Housing & Modernisation to agree.
5. That it be noted that final agreement will be subject to reaching agreement on a number of conditional matters which need to be fulfilled before the lease can be granted and the Funding Agreement signed by officers. These include:
· Satisfactory preliminary site investigations.
· Grant of satisfactory building consents/planning permission secured.
· Agreement on the mechanism for project delivery finance secured through the council’s Housing Investment Programme.
· Officers’ agreement on the detailed final cost plans for the Scheme including professional fees and the CBS client fee.
· Agreement on any outstanding legal issues.
· The inclusion 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.
· Agreement to authorise that the land on the Joseph Lancaster Estate, Deverell Street, London SE1 (“the Property”), as shown edged blue on the plan attached at Appendix 1 is appropriated for planning purposes to be held pursuant to the provisions of Section 237 of Town and Country Planning Act 1990 for planning purposes in accordance with the Power of appropriation: Section 122 of the Local Government Act 1972. This appropriation will be subject to receipt of planning permission.
· Completion of a property due diligence exercise on the site which will include ensuring that there are no other rights or interests in any of the land.
6. That it be noted that a planning application for the scheme (17/AP/4661) has been submitted by the CBS and will be considered by the planning committee in due course.
7. That officers develop a policy that sets out the council’s criteria for the agreement of requests of this type for land and funding.