Purpose

The Cabinet will be asked to approve proposals
relating to the new build development at Gascoigne East Phase 3b to
provide 334 new homes at a revised Contract Sum.

Content

The Cabinet will be asked to approve proposals
relating to the new build development at Gascoigne East Phase 3b to
provide 334 new homes at a revised Contract Sum.

Cabinet resolved
to:
 
(i)  Approve
the recommendation to proceed with the Gascoigne East Phase 3b
development project at the new contract sum agreed with Wates of
£147,996,637;
 
(ii)  Approve the
revised total development cost of £174,657,138 including
forecast capitalised interest (£169,256,073 excl.
interest);
 
(iii)  Approve the
implementation of steps 1 to 4E, as set out in paragraph 2.17 of
the report, as the most viable proposal that meets the IAS metrics
and the steps required to achieve this position;
 
(iv)  Approve the handover
loan to Reside at £96,080,179, comprising £75,170,844
for Affordable Rental homes and £20,913,031 for the London
Affordable Rent homes;
 
(v)  Approve in
principle the use of Council funding of up to £5,987,703 for
the public realm works, to be funded from the future disposal of
commercial asset(s) or Section 106 monies;
 
(vi)  Approve the revised
use of Right to Buy Receipts of up to £52m to support the
viability of the Affordable Rent homes and 3-4 bed London
Affordable Rent homes;
 
(vii)  Approve the revised use of
GLA Affordable Housing Grant of £6m and GLA Right to Buy
ringfenced monies of £9,754,813;
 
(viii)  Approve the allocation, subject
to the endorsement of the Assets and Capital Board, of
£1,771,784 of S106 contributions to support the viability of
the LAR homes or the delivery of public realm; and
 
(ix)  Note that Scenario
4E meets the IAS return metrics producing a Net Present Value of
+£40m and a positive cumulative cashflow in year 1.