Decision details

On 18^th June 2007 Cabinet approved the Council entering into The Principal Development Agreement (PDA) with Barratt Evolution LLP (BEL), for the regeneration of the Stonegrove and Spur Road Estates. This was subsequently varied by Deeds of Variation on 25 March 2008 and 30th June 2011.

Resolution 3 of the decision of Cabinet on 18th June 2007 stated that, subject to the final terms of the Principal Development Agreement and legal arrangements being approved by the Cabinet Member for Regeneration and Development under Delegated Powers; that the necessary legal documentation be completed in order for the scheme to proceed.

The regeneration of the estate includes a requirement in the PDA, and under a Section 106 Agreement, that BEL construct a new Community Building and Church.  The Community building is a new facility that will be operated by the Stonegrove Community Trust (SCT) under the terms of a Community Trust Deed between the Council and the Trust.

Part of the land for the final phase of the regeneration is owned or leased by the London Diocesan Fund (LDF).  This land includes a long lease (at a peppercorn rent) of St. Peter’s church hall and the freehold of the existing vicarage. To avoid acquisition of this land under a Compulsory Purchase Order a land swap was agreed with the LDF.

The PDA and the s106 Agreement requires Barratts to build a new parsonage and, on completion, the PDA requires the Council to transfer the land for the parsonage and the church to the LDF in consideration of the LDF transferring the freehold of the vicarage.

The LDF’s loss of St Peter’s church hall is being compensated through the grant of a 999 year lease to the LDF of the new community building and church, in accordance with the terms of the PDA.

In order to maximise the use of the new community facilities the church and community buildings have been constructed together on the site shown outlined in red on the attached plan 12407_70_03-D Community Centre Plan (with such minor or inconsequential amendments as may be necessary to give effect to the transaction).  This will reduce the running costs and maximise amount of space available for community usage. Planning consent has been granted for this building which is already under construction.

The parties have all agreed to amend the plan in the PDA to reflect what is being built and the PDA allows the plan to be varied.

Because of the inter-relationship between the various agreements and leases the parties will need to complete an Agreement for Lease that will place obligations on the parties to complete the documents needed at the appropriate time.

This DPR requests authority for the Council to enter into the Agreement for Lease, and subsequently complete two occupational 998 year leases, one to the LDF for the church area and one to the Community Trust for the community centre.  Each lease is at a peppercorn rent on internal repairing and insuring terms with a service charge to cover the cost of maintenance of common parts.  In addition to the occupational leases to compensate the LDF for the loss of its lease of the church hall authority is requested to enter into an overriding 999 year lease of the building with the LDF, under which they will take on full responsibility for both managing and maintaining the whole building.  The Council will retain the Freehold interest.

The Community Trust (CT) will operate the community centre under the terms of a Community Trust Deed to be granted by the Council, the terms of which maintain the principles set out in the PDA and the Council’s objectives to maintain a community centre for the estate. Authority to complete this Deed is also requested.

The full cost of the construction of the church and community centre building and all legal costs are reimbursed to the Council by BEL under the terms of the PDA.  There are no financial implications for the Council in completing the leases, land transfers and other agreements which all form part of the Council’s obligations under the PDA.