Agenda item

To agree to the terms of the regeneration agreement with Lend Lease (Elephant and Castle) Ltd for the regeneration of the Elephant and Castle and approve the disposal of housing land at the Heygate Estate on terms outlined in the regeneration agreement.

This item had not been circulated 5 clear days in advance of the meeting.  The chair agreed to accept the item for reasons of urgency as the agreed timetable between the council and Lend Lease expired at the end July 2010.  A decision at this meeting allowed sufficient time for the appropriate ‘call-in’ procedures including any reconsideration by cabinet if necessary and any further redrafting of the regeneration agreement. 

The cabinet considered a recommendation from overview and scrutiny committee with regard to the cabinet assuring itself that the council can satisfy the District Auditor that it has achieved the best consideration for disposal of its land at the Heygate Estate and that the terms of disposal sufficiently met those of the developer’s best and final offer.  The cabinet took officer advice on these points.

RESOLVED:

1  That the terms of the regeneration agreement with Lend Lease (Elephant and Castle) Ltd for the regeneration of the Elephant & Castle as outlined in the report be agreed.

2  That approval be given for the disposal of housing land at the Heygate Estate, shown edged in red on the plan at Appendix 1 (“the Land”), to Lend Lease on the terms outlined in the regeneration agreement by way of 999 year leases for premiums plus overage if applicable as set out in the closed report subject to:

·  The Council obtaining confirmation from the Secretary of State for the Department for Communities and Local Government (“CLG”) that specific consent to the transfer of housing Land will not be necessary; or,

·  Council assembly’s approval of an application to CLG for consent to the disposal of housing Land at less than best consideration and that consent being obtained; and,

·  Other conditions precedent being met.

3  That council assembly be recommended to approve an application to CLG for consent to transfer the Land if such consent is necessary.

4  That the minimum level of affordable housing to be delivered as part of the scheme be 25% as set out in the Minimum Development Requirements.

5  That officers report back to a future meeting to seek further instruction on the compulsory purchase of the site, underwritten by Lend Lease, in the event that negotiations to bring forward the development of the shopping centre site are unsuccessful.