Purpose

Cabinet is recommended to
approve:
 
(1)  
The proposed Heads of Terms of the Development
Agreement.

(2)  
Entering into an unconditional development agreement
with developer London Square.
 

Content

Cabinet:
 
(1)         
agreed to prioritise the number of affordable homes in the Lea
Bridge Station Sites scheme by increasing the percentage from 50%,
included within the original development agreement, to 100% and to
update the commercial deal as set out within the financial
implications included within exempt Appendix 6 of the report;

 
(2)         
delegated authority to the Strategic Director of Place to agree the
final terms and authorise the Deed of Variation to the Development
Agreement;
 
(3)         
delegated authority to the Strategic Director of Place to enter
into all legal agreements pursuant to the Development Agreement;
and
 
(4)         
noted that, as a result of the amended planning authority, the
proposed development has changed since the Cabinet decision of
October 2022 which approved appropriation of the land. One
additional property is affected, and the Council intends to
appropriate the land as per the October 2022 Cabinet decision, but
in line with the new proposed development.
 

Options & Alternatives Considered

The only other option available to the Council would
be to not proceed with the development and terminate the
Development Agreement. This option is not recommended as it would
mean that the scheme would not be delivered and the benefits of 387
affordable homes, new station entrance and plaza, commercial and
cultural floorspace and an improved public realm would not be
realised. Another disbenefit of not proceeding with London Square
is that the Council will have incurred sunk costs which are
unrecoverable.

Further justification for proceeding with the
current development with partner London Square is that securing
another partner to deliver the scheme would be extremely
challenging. The sites are subject to complex constraints, i.e. the
need for significant utilities works and land swap agreement with
Network Rail. There are several factors which would make the
development unattractive to any other developer. Given both the
Council and London Square have invested heavily in the development
and have secured significant grant, both parties remain committed
to delivering the scheme. Procuring another developer would also
result in further costs for the Council, as well as significant
delays to achieving a start on site, which would jeopardise the
existing GLA grant allocation.

Proceeding with London Square and the current
proposal ensures the delivery of significant benefits and
demonstrates value for money/ best value for the Council. The
current strategy also satisfies any procurement challenge and
Section 123 issues, as demonstrated in Exempt Appendices 4 and
5.