Issue - meetings

The Cabinet gave detailed consideration to a report which set out the terms of a Conditional Land Sale Agreement (CLSA) which would grant an option to the Capital and Counties Properties PLC group of companies (Capco) to include Council owned land including the West Kensington and Gibbs Green estates in a comprehensive redevelopment scheme. At the same time Members also received and considered the final analysis of consultation responses and the equalities impact assessment in respect of the proposals.

The Chairman invited the Executive Director of Housing and Regeneration, Melbourne Barrett, to introduce the report.

Mr Barrett emphasised that the decision before Members was very significant for the Authority. Recommending that the Cabinet should agree that it was willing to enter into the Conditional Land Sale Agreement, Mr Barrett acknowledged the disturbance and disruption to residents but considered that this needed to be balanced against the very significant benefits to the local community and the wider area provided by such a major opportunity for growth and development. The 10m sq ft mixed use development would yield 7,500 new homes, including 760 new replacement homes, 2m sq ft of commercial space, 36,000 temporary construction jobs and 9,500 permanent jobs, a park, playgrounds and other facilities for children. The development was expected to bring in £99m pa of additional expenditure in the local economy.

Mr Barrett outlined details of the CLSA and the advantages and safeguards for tenants and leaseholders. It was noted that the Conditional Land Sale Agreement provided for the transfer of the Council’s land in phases with replacement homes provided by the developer prior to any transfer. It was anticipated that the first phase of replacement housing would be provided on Capco’s land at Seagrave Road, facilitating a ‘one move only approach. Existing Council tenants, resident leaseholders and freeholders would be guaranteed a brand new replacement home within the development, compliant with the Mayor of London’s design guidance standards.

Tenants would remain secure tenants of the Council paying Council rents. They would also receive a statutory home loss payment of £4,700, a disturbance payment to cover moving costs and new white goods, carpets and curtains. Resident leaseholders/freeholders would receive market value plus 10% statutory home loss payment (subject to a maximum £47,000) and a further 10% early purchase discount on a replacement property. If necessary the Council would bridge the gap in value between the resident leaseholders and freeholders old and new properties and hold the value as equity so no additional borrowing would be required.

It was emphasised that as the housing stock was not being transferred there was no requirement for a tenant ballot. The phased nature of the development would enable whole communities to be moved together. Dedicated re-housing officers would be available on site to offer advice and support to residents on a one to one basis.

Mr Barrett explained that the proposals also offered substantial benefits to the Council, enabling existing housing stock to be replaced on a new for old  ...  view the full minutes text for item 50