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RESOLVED:
 
That Cabinet:

Approved the scheme for Climate, Homes & Economy Directorate as
set out in section 11 of the report:
 
1. 
Approve the Hackney Downs Park Basketball Courts and
Multi Use Games Area (MUGA) refurbishment: Resource and spend
approval of £105k in 2025/26 is requested to go towards the
upgrade to the basketball courts and MUGA at this site.
 
2. 
Approve that the scheme for Children & Education
Directorate as set out in section 11 of the report:
 
3. 
Approve that Shacklewell
Primary School Roof Replacement and Solar Installation: Resource
and spend approval of £120k in 2025/26 is requested to fund
the recovery of the roof, associated works to the pitched windows
and northlights, the installation of a
guardrail and the installation of a photovoltaic (PV) solar system
at this site.
 
4. 
Note the Capital Final Outturn for 2024/25 as set out
in section 12 of the report. 

5. 
Authorise the disposal of 18 London Lane, 20 London
Lane, and 13a Englefield Road, shown
for identification purposes only edged red on the plan at Appendix
1.
 
6. 
Authorise the disposal of part of Public Library Record
Centre and Archives Store, Roseberry Place and Beechwood Road, Hackney, London (E8 3DG), (also
known as, and referred to in this report as, 14 Dalston Lane), shown for identification purposes
only edged red on the plan at Appendix 2.
 
7. 
Authorise the disposal of the Land at Pearson Street
shown for identification purposes only edged red on the plan at
Appendix 3.
 
8. 
Delegates authority to the Group Director of Finance to
agree all commercial terms of the transactions.
 
9. 
Delegates authority to the Director of Legal,
Democratic and Electoral Services to settle, agree and enter into
all documentation necessary for the transactions.
 
10.Approve the
granting of a new lease of fifteen years of the ground floor and
basement of 96–98 Leonard Street EC2 to Disco Wheel Ltd,
incorporating the proposed Heads of Terms, shown for identification
purposes only edged red on the plan at Appendix 4, (subject to any
reasonable amendments during the legal process), to secure
occupation and generate income for the General Fund.
 
11.Delegates to the
Group Director of Finance and the Director of Strategic Property
Services the authority to agree the final lease terms and
associated documentation, ensuring that the letting represents best
consideration.
 
12.Delegates
authority to the Director of Legal, Democratic and Electoral
Services  to
complete the lease and any other relevant or ancillary legal
documents arising thereto on behalf of the Council.
 
13.Authorise the
purchase of 161 Queen's Drive, N4 2AR, shown for identification
purposes only edged red on the plan at Appendix 6.
 
14.Delegates
authority to the Group Director of Finance, in consultation with
the Director of Strategic Property Services to negotiate all
commercial terms and agree the purchase of 161 Queen’s Drive,
N4 2AR as shown in Appendix 7 which is Exempt from
publication. 
 
15.Stamp duty
(SDLT) due be paid on the purchases (if applicable).
 
16.Authorise the
Director of Legal, Democratic and Electoral Services to prepare,
agree, settle and sign the necessary legal documentation to effect
the proposals contained in this report and to enter into any other
ancillary legal documentation as required.
 
REASONS FOR DECISION:
 
The decisions required are necessary in order
that the schemes within the Council’s approved Capital
programme can be delivered and necessary to approve the property
proposals as set out in this report.
 
In most cases resources have already been
allocated to the capital schemes as part of the budget setting
exercise but spending approval is required in order for the scheme
to proceed. Where, however, resources have not previously been
allocated, resource approval is requested in this report.
 
To facilitate financial management and control
of the Council's finances.
 
Proposed disposal of three general fund assets
18-20 London Lane (including 13a Englefield Road), 14 Dalston Lane and Land at Pearson Street: Retaining
these properties in the Commercial portfolio no longer represents
best use  and
their sale offers potential for the Council to utilise capital
receipts, with the appropriate permissions, to fund invest to save
and transformational revenue spend. These buildings are expected to
generate significant interest if they were to be offered to the
market on a freehold or long leasehold basis. In the case of Land
at Pearson Street, it is anticipated that the long leaseholder may
seek to purchase the freehold as a special purchaser.
 
These are also  examples of assets that the Council could
dispose of relatively quickly, without the need for relocations or
wide consultation that might be the case for some VCS (Voluntary
and Community Sector) assets, and where there is either no
immediate loss of commercial income, or (in the case of 18-20
London Lane) where there is a likelihood of a void in approximately
12 months time.
 
18-20 London Lane and 14 Dalston Lane will be offered to the market for sale
or on the basis of a standard commercial lease, so that if a strong
commercial letting proposal is received, the Council can still
consider this, and determine alternative assets for disposal to
meet the requirement for capital receipts.
 
Proposed Lease of Ground Floor and Basement of
96-98 Leonard Street EC2: Letting the property to Disco Wheel Ltd
on these terms will secure a new tenant for a currently vacant
Council asset, bringing it back into productive use and generating
income for the General Fund.
 
The proposed rent level and broader terms are
in line with commercial market expectations and the tenant’s
proposed investment plans will improve the premises.
 
Proposed purchase of 161 Queen’s Drive,
N4 2AR: There is a significant need to increase the provision of
temporary accommodation in the Borough. As set out within Part 7 of
the Housing Act 1996, the Council has a statutory duty to provide
interim temporary accommodation to homeless persons/households to
whom it appears to have a duty to provide permanent housing.
 
Currently, meeting this statutory duty
requires using expensive nightly-paid and/or spot-purchased
accommodation, as well as accommodation outside of the Borough. The
acquisition of this property adds 34 units to the amount available
for temporary accommodation within Hackney and within the
Council’s ownership. These units will provide accommodation
for the most highly-supported single residents who are in need of
temporary accommodation. 
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED:
 
Proposed disposal of three general fund assets
18-20 London Lane (including 13a Englefield Road), 14 Dalston Lane and Land at Pearson Street:
 
No action. This option has been rejected
because the building at 14 Dalston Lane
is vacant and incurring substantial void costs to the Council, and
18-20 London Lane is currently anticipated to be vacated in
approximately one year. In any event, the Council needs to secure
capital receipts and can not do this
without taking properties forward for disposal.
 
Market only on a standard commercial lease
basis. This option has been rejected for 18-20 London Lane and 14
Dalston Lane because the Council needs
to identify capital receipts from commercial property disposals and
these buildings could present viable opportunities to support this
and offer better value to the Council..
This option is not applicable to Land at Pearson St because the
asset is already subject to a leasehold interest.
 
Market only for sale. In respect of 18-20
London Lane and 14 Dalston Lane, this
option has been rejected because by offering the properties for
sale or lease, the Council loses nothing but gains insight on what
the financial bottom line and other impacts will be from both
options.
 
Other corporate objectives. In respect of
18-20 London Lane and 14 Dalston Lane,
there is a high risk that planning consent would not be achieved in
the short/ medium term for conversion to residential use, including
temporary accommodation and specialised supported housing. A
developer might be able to take a longer term view on this, but it
is not viable for the Council to hold very costly and high value
buildings in such a speculative way.
 
The Council does not have direct control over
the land at Pearson Street due to the existing long leasehold
interest, so can not make plans to use
it.
 
Retain the freehold of the Land at Pearson
Street and consider attempting to agree a surrender of the long
leasehold interest in order to obtain control of the land. This
option has been rejected at this stage because a transaction of
this type would require the Council to pay a reverse premium
capital sum at a time when it is seeking capital receipts. Even
then, the land would be subject to the irregular boundary on the
west side, unless the Council could also secure an acquisition of
that strip of land. The Council would then have responsibility to
secure and / or let out the site, which we know has been
challenging for Places for London for many years, with associated
void costs and liabilities. Notwithstanding this, the Council could
reconsider this option if acceptable terms for the disposal of the
freehold interest can not be
reached.
 
Proposed Lease of Ground Floor and Basement of
96-98 Leonard Street EC2: The Council could also have opted to
reject the proposal from Disco Wheel Ltd and continue marketing.
However, this would have risked a longer void period and ongoing
holding costs, with no guarantee of achieving improved terms. Given
current market conditions and the quality of the offer received,
this option was not recommended by the Council's agents or Council
officers.
 
Proposed Acquisition of 161 Queen’s
Drive, N4 2AR: The Council’s Benefits and Homeless Prevention
Service is facing a shortage in the supply of Council-owned and /
or leased accommodation for use as emergency / temporary
accommodation, especially within the Borough. This has resulted in
the increased use of expensive nightly-paid annex accommodation,
plus the increasing use of out-of-borough accommodation.
 
Should the Council not purchase this property,
then it cannot be certain of the future availability or price of
similar new build HMOs within the Borough.
 
If the Council does not purchase this property
then there will be a continued need for short-term, emergency
accommodation inside and outside of the Borough for the most
vulnerable residents in housing need. The significant revenue cost
for this accommodation will therefore remain, with potential for it
to increase. Purchase of this property, will enable the Council to
allocate the 34 units comprised in the property, to meet such need,
and so to notably reduce that revenue cost, and risk of such cost
increase.