Purpose

In December 2013 the Council’s Cabinet approved a proposal
for the redevelopment of a former industrial estate at Liddell Road
to support expansion of Kingsgate Primary School and provide
residential and employment benefits.
 
In May 2021, two 999-year leases were completed to the
developer, West Hampstead Ltd for both the mansion & tower
residential blocks with a capital receipt of £20m, and a
Development Agreement setting out our Employer’s Requirements
for the design and construction of the workspace, of which
construction is due to complete in March 2024.
 
A capital budget for managing the Development Agreement was
established in November 2021 but, due to unforeseen costs, this is
now insufficient to take the project through to completion. This
means that an additional capital budget of £391,000 is now
required, of which £132,000 pertains to costs incurred in
prior years.
 
 

Content

THAT the Executive Director Corporate Services, in consultation
with the Executive Director Supporting Communities, the Executive
Director Adults & Health, the Executive Director Children and
Learning and the Borough Solicitor agrees an additional capital
budget of £391,000 for managing the Development Agreement (of
which £132,000 pertains to costs already incurred in prior
years, as detailed below and in the Part II report), as part of the
due diligence associated with taking the project to completion.