The meeting scheduled for 17 January 2019 was set to discuss a key agreement for the Meridian Works Site One project. This project aims to support professional and highly skilled makers and creative entrepreneurs as part of the wider Meridian Water regeneration area.

Meridian Works Site One: Authority to Sign Key Agreements to Enable Project Delivery

The primary item scheduled for discussion was the Meridian Works Site One project, which is intended to support professional and highly skilled makers and creative entrepreneurs. This initiative is aligned with the emerging employment strategy for Meridian Water, as outlined in the Meridian Water Employment Approach report, which was previously authorised by Cabinet on 25th July 2018.

The report indicated that the project involves working with Building BloQs, an existing business within the Meridian Water regeneration area, to expand and provide high-quality makerspace. The project is expected to safeguard 84 full-time equivalent (FTE) jobs and create an additional 209 FTE jobs.

The recommendations put forward in the report were intended to reflect the agreement made by Cabinet in July 2018 to proceed with the project in collaboration with Building BloQs. Authority was delegated to the Executive Director Place, in consultation with the Meridian Water Programme Director, the Executive Director Finance, and the Lead Member for Meridian Water, to make implementation decisions within the approved budget and scope for Meridian Works One. Furthermore, the Director of Law and Governance was delegated authority to approve any necessary legal agreements.

The report sought approval for the provision of a grant to Building BloQs at Meridian Works Limited to assist in the delivery of the project. It also proposed entering into a lease with Building BloQs for the former VOSA site, located at 2 Anthony Way, and commencing the procurement of works at this site to facilitate the lease agreement.

The project's background details that Meridian Works One is to be delivered at Anthony Way within the east bank area of the Meridian Water Masterplan. The project focuses on supporting makers and creative businesses, with the intention that the synergy between these uses would provide a stream of work and income for each other, creating a critical mass for viability and positive place-making benefits.

Progress since the Cabinet meeting in July 2018 included efforts to agree terms with Building BloQs and develop a scheme design for the new premises at the former VOSA site. The Council also completed the acquisition of 4 Anthony Way in November, increasing its landholdings at Meridian Water. A new project team has been established to progress the scheme design for the former VOSA Depot site, involving refurbishment of the existing structure and the construction of new elements. A cost plan has been developed to ensure the project stays within the approved Cabinet budget.

The Council has agreed revised outputs, project scope, and budget with Building BloQs and the Greater London Authority (GLA), supporting a Deed of Variation to the GLA Funding Agreement. The GLA is providing a £1.35 million grant as part of the London Regeneration Fund (LRF). The revised outputs reflect a reduced scale compared to the original proposed location. The GLA funding will be drawn down against expenditure incurred by 31st March 2019, including the acquisition cost of 4 Anthony Way and capital costs for Building BloQs, largely for machinery.

Negotiations on the Heads of Terms for the Agreement for Lease and Lease of the former VOSA site have largely been agreed with Building BloQs. The report noted that these recommendations are contingent on the approval of Heads of Terms by Strategic Property Services and the sign-off of necessary legal documents by the Director of Law and Governance.

The report also mentioned that the Executive Director of Resources has authorised the Building BloQs Business Plan, as delegated by Cabinet.

The programme and next steps, subject to the report's recommendations and approval of Heads of Terms, include signing an Agreement for Lease, signing the Deed of Variation to the GLA Funding Agreement, and funding Building BloQs' initial capital costs. A planning application is anticipated in spring 2019, with construction expected to commence in autumn 2019 and completion in summer 2020. Building BloQs will undertake fit-out works, partly funded by the grant.

Alternative options considered were not deemed appropriate as they would not align with the Cabinet's July 2018 decision and could result in the withdrawal of GLA funds. The reasons for the recommendations were stated as reflecting the Cabinet's decision in July 2018.

Financial, legal, and property implications were noted, with specific references to the Localism Act 2011, the Council's Constitution, EU Public Contracts Regulations 2015, the Public Services (Social Value) Act 2012, and the Local Government Act 1972. The report also highlighted that any procurement must comply with the Council's Contract Procedure Rules and that any lease granted for more than 7 years will be subject to Section 123 of the Local Government Act 1972. The property implications section noted that negotiations on Heads of Terms are largely agreed, but an independent report from a Chartered Surveyor confirming market value is awaited.

The project is considered to have a highly positive impact on the council's priority of Build our local economy to create a thriving place by facilitating the growth of skilled creative industries and boosting employment opportunities. Equalities impact implications were also addressed, with a recommendation to review and update the Meridian Water EQIA and to include a duty in awarded contracts for successful applicants to assist the council in meeting its obligations under the Equality Act 2010.