Purpose

A formal decision paper to determine whether
the Council enters into a transaction to amend the leasing
structure for the Stratford Centre, Morgan House and surrounding
land

Decision

Decision
 
For the reasons set out in the report and its
appendices Cabinet RESOLVED to Agree:
 

i) 
Entering into new leases with the current leaseholder allowing
comprehensive redevelopment on Stratford Island in line with
Community Wealth Building objectives, with an option expiring in 6
months from the Cabinet decision date, for Newham Council to fit
out at its own cost and relocate to Morgan House.

ii) 
To delegate authority to the Corporate Director of Resources and
Corporate Director of Inclusive Economy, Housing and Culture, in
consultation with the Lead Member for Finance and Resources and
Lead Member for Inclusive Economy, Housing Delivery and Culture
to;

· 
Carry out further due diligence and finalise heads of terms
attached at Exempt Appendix 2, subject to the terms not being
materially worse for the Council than those agreed within the Heads
of Terms at Appendix 2.

· 
Approve final terms on either 2.1. or 2.2 and enter into new leases
with the leaseholder; including the arrangement and entering into
all necessary legal documentation (subject to legal due diligence)
in association with the transaction.
 
iii) 
To note that a further Cabinet decision will be sought in
connection with whether to exercise the Option to fit out and
re-locate Newham Council services to Morgan House.
 
Alternatives
Considered
 

a) 
There is an option for the Council to ‘do nothing’ and
not to intervene with any development that Leaseholder would
potentially undertake or not. However, this is not the recommended
approach as it would likely result in; a) the long leaseholder
pursuing a scheme that delivers financial returns over long term
CWB benefits in line with the Stratford Vision; or b) no or little
change on the Stratford Island site due to the current lease
structure rendering any development unviable.
 

b) 
The do nothing scenario would inhibit any social value benefits
which could be derived from a viable scheme, and therefore limit
any direct or indirect CWB benefits from developing the site.