Issue - meetings

The Leader invited the Executive Director for Housing and Regeneration, Mel Barrett, to provide an update on the progress on the Conditional Land Sale Agreement (CLSA) and the outcome of the formal consultation with residents on the details of the proposals to include the estates within the comprehensive redevelopment scheme.  Mel Barrett introduced the Council’s three main advisers – Richard Budge (SNR Denton), Christopher Pratt (Jones Lang Lasalle) and Richard Parker (Price Waterhouse Coopers).

The Executive Director informed the meeting of the following key points:-

·        The proposal is a major opportunity for growth and development of the borough.

·        The proposed development will consist of four new villages linking Earls Court station to North End Road with a mixed use development to include 7,500 new homes, 2 million square feet of Commercial space, a new Lost River Park and playgrounds and facilities for children of all ages.

·        36,000 temporary construction jobs and 9,500 permanent jobs will be provided.

·        Once completed, the development could bring an estimated £99million per annum of additional local expenditure into the economy.

The draft Conditional Land Sale Agreement (CLSA) is a draft agreement for the transfer of the Council's land in phases, with phases of land not being drawn down until replacement homes have been provided.  The Council is under a duty to consider the views of its tenants, leaseholders and the wider population in the area.  It must also obtain 'best consideration' for its interest.

The proposed guarantees for tenants and leaseholders include:-

• Brand new replacement homes, one move only within the local area,
• Tenants remain secure Council tenants and continue to pay Council rents – there is no stock transfer and therefore no requirement for a ballot,
• Phased approach allows communities to be moved together,
• The compensation package for tenants covering statutory home loss payment, disturbance payment to cover moving costs and additional new white goods, carpets and curtains is generous,
• Resident leaseholders/ freeholders receive Market Value plus 10% statutory disturbance plus a further 10% early purchase discount on replacement property, i.e. two payments, and
• Service charges capped for 5 years and agreed by the Council beyond that.

Benefits for the Council include:-

• Comprehensive redevelopment allows existing housing stock to be replaced on a "new for old" basis and 16% of existing tenants who are overcrowded can be re-housed in homes with enough bedrooms to meet their need. 
• Replacement housing funded by private sector funding through the developer rather than scarce public sector resources.

Richard Budge (SNR Denton) provided advice on the legal agreement.  He stated that Capco must serve a Notice to Trigger the CLSA within 9 months of the completion of 150 replacement social housing units at Seagrave Road, or within 5 years, whichever is the earlier, otherwise the Council can terminate the agreement.  Consideration for the Council's land is 760 new replacement homes and £105 million.  Capco must have delivered all replacement homes before any land can be transferred.   This will require a significant amount of investment to carry through the scheme.  ...  view the full minutes text for item 230