Council decisions

The report authorises the putting in place of planning obligations that are required to be taken into account by the planning inspector when deciding whether to uphold or dismiss the appeal against the refusal of planning permission for the Granville Road Estate  scheme F/04474/14 15/01195/AREF  APP/N5090/W/15/3132049 (“the Appeal”)

This is a request for Barnet Council to grant delegated authority to Barnet Homes to enable Barnet Homes to grant an easement for a gas supply on land owned by Barnet Council. 

Barnet Homes is to complete a new build development on behalf of the Council at Tarling Road, N2 8LB. The development requires a new easement for the gas services (HB Law are progressing this on behalf of Barnet Homes). Barnet Homes are not the legal owners of the land, HB Law require delegated authority from Barnet Council to be given to Barnet Homes in order to progress the easement (as shown in the plan above).

This report provides a general update on progress against the Oakleigh Road Depot and seeks approval to enter into the JCT Design and Build Contract for the construction of the new Council Depot as a replacement for the Mill Hill East Depot.

The Assets, Regeneration and Growth Committee approved at its meeting on 7^th September 2015, amongst other matters, to enter into the Pre-Construction Services Agreement and to delegate to the Commissioning Director for Growth and Development, in consultation with the Chairman to execute all future contracts associated with the Pre-Construction Services Agreement(s).

This DPR provides authority to enter into five Pre-Construction Services Agreements (one for each site) with Wates Construction Limited, the successful tenderer, to only carry out the necessary services on Tranche 1, up to and including RIBA Stage 4 – Technical Design, to be approved.

Attached is a summary of decisions taken under delegated powers from October 2015.

This details a decision the Director of Assurance to agree the sealing of legal agreement under delegated powers.  This has been provided by the appellant at the Public Inquiry into decision of the Finchley & Golders Green Area Planning Committee to refuse planning permission for a sports pavilion.

The legal agreement would make financial contributions towards traffic management improvements outside the school and towards the monitoring of a Travel Plan for the facility.

As part of the West Hendon Regeneration the council’s development partner, Barratt Metropolitan LLP (BMLLP) needs to enter into an agreement with Thames Water for a new sewer and associated structures to provide drainage to the new West Hendon properties..

The sewer and associated structures will be in an area of York Park owned by the council which is why the council needs to be party to the Agreement.  All costs are being met by BMLLP.

In order to comply with its obligations under s123 of the Local Government Act 1972 the council approved the advertising of the proposal under a DPR approved on 24^th January 2013 (attached). No objections were received.

This DPR requests authority to enter into the s185 Agreement between  BMLLP, Barnet Council, Thames Water and the National House Building Council (as Surety) in the position shown on the attached plan EXTR_2081572_1

The attached document is a summary of decisions taken under delegated powers in September 2015

The attached document is a summary of decisions taken under delegated powers in August.

The Council benefits from a restriction over title number NGL445141, owned by Barratt Metropolitan LLP (BMLLP). The purpose of the restriction is to ensure that the terms of the transfer dated 24 March 2011 of the land from the Council to BMLLP are complied with by BMLLP. In particular, that BMLLP will not dispose of land intended to be common areas without first procuring that any purchaser of such land enters into a direct covenant with the Council.

BMLLP have granted Metropolitan Housing Trust Limited a lease of the sites known as Blocks G1 and G2. This disposition does not breach the terms of the restriction and accordingly the restriction, therefore, does not apply to this disposition.

Authority is sought for the issuing of a certificate to the Land Registry that the terms of the transfer dated 24 March 2011 do not apply to this disposition

Decision

Authorise the private treaty acquisition of the Estate Properties’ leasehold interests within West Hendon CPO1 land in accordance with Heads of Terms to be agreed in respect of each property.

This report approves:

This report seeks approval for the appointment of Galliford Try to enter into a Pre Construction agreement for the RIBA Stage 4, Technical Design works on the New Corporate Accommodation in Colindale.

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.

Variation to DPR published on 29^th April 2015

Under the DPR the Council approved (inter alia)

3.       That in accordance with the resolution of Assets Regeneration and Growth Committee dated 8th September 2014 and the terms of the Development Agreement dated 1st October 2012 between the Council and Countryside Properties (UK) Limited, the Council agrees enter into shared equity mortgages in respect of the five newly constructed properties on the redeveloped estate identified at paragraph 1.10 below

On phase 1 the Council has agreed to enter into shared equity mortgages on 7 homes, 5 of which are awaiting completion. Under the terms of the shared equity agreements the council will hold a percentage of the value of the home and it has been agreed that stamp duty land tax will be paid on a proportional basis with the council being responsible for payment of the SDLT on its equity holding.

The actual amount payable may increase slightly  dependent on the final sale price at completion, but the provisional amount of SDLT that the Council will pay has been assessed at £50,137.50

This variation to the DPR seeks authority to Complete the Mortgage agreements and to pay the Stamp Duty Land tax due on each property in proportion to the equity interest retained by the Council  up to a maximum of £52,000

To carry out a public consultation exercise with local residents, organisations, relevant ward members, and amenity groups on the draft Character Appraisal and Management Proposals, for Moss Hall Crescent Conservation Area.

Various property transactions

London Borough of Barnet (LBB) currently operates a waste and recycling depot at Mill Hill East. The depot falls within the area identified for regeneration in the Council’s adopted Mill Hill East Area Action Plan (MHEAAP)^[1], as agreed in January 2009. In 2010, LBB agreed to form a consortium with private partners to develop the land, forming the Inglis Consortium. As part of this agreement, LBB has a contractual commitment to relocate the depot by December 2016, which will bring significant financial benefits, estimated at £41.5m over the next 10 years.

A business case has been developed, reviewing the short-listed sites from the options appraisal stage. The business case has appraised the options and recommended the option that presents the greatest value for money for the Council. It has also reviewed commercial considerations, affordability and management arrangements to recommend a preferred option. The preferred scheme is now moving forward to the next stage of the process i.e. planning permission, land acquisition, and Stage 3 design.

Detailed site searches have been developed since 2011, and in 2014 an evaluation process was run to shortlist the available sites. The two sites which were shortlisted are:

·        Relocation of current operations to Lupa House, Borehamwood (with the bulk transfer facility and salt barn relocating to Bunns Lane);

·        Relocation of current operations to the old Abbotts Depot in Oakleigh Road South, Barnet;

·        An option for No relocation, and extraction from the Inglis Consortium will be considered;

·        Do Nothing will also be reviewed.

Following the Council decision on 14 April 2015 (as referred by the Assets, Regeneration and Growth committee on 16 March 2015), officers included Winters lease within the preferred option. This analysis in the business case indicates that the Abbotts site with a lease of the Winters site is still the preferred option, with a Net Present Value (NPV) per benefit point^[2], of £7,208 per benefit point to -£2,190 per benefit point (a Net Present Cost or NPC) for Lupa House.

Do Nothing is not an option for the Council as continuing operations of the depot from the current site is not possible. The Council entered into a Limited Liability Partnership and Co-operation Agreement with private developers to develop the Mill Hill East area for residential use, the ‘Inglis Consortium’. It is bound under this agreement to vacate the Mill Hill Depot site by December 2016. The Council also chose not to take up the option to ‘carve out’^[3]part of the existing depot land in June 2013.

We have considered a further option of not relocating from the depot site at all. This would mean terminating a contractual agreement with a number of partners, failure to regenerate the Mill Hill East area (and benefit from the associated income), failure to meet LBB’s strategic regeneration aims in that area, lead to significant reputational damage and open the Council up to a high degree of financial and commercial risk. The loss of income from the Mill Hill site would amount to a total NPC of £35.7m over 11 years, which does not include the additional costs of exit from LBB’s contractual agreements.

The Lupa House site is out-of-borough, requiring another facility to be acquired for the salt barn and bulking station, which results in the option being too large for the Council’s needs. Furthermore, the only commercial option open to the Council at this point is a lease arrangement. Timescales however are a positive factor for this site, with the build being simpler than for Abbotts (it is an existing industrial site which would require modification rather than a complete new build) and therefore LBB could be more likely to meet the December 2016 vacation date. The total gross capital costs of this option are £10.6m, with recurrent costs of £1.7m per annum.

Phase 1 of the Dollis Valley regeneration scheme is now nearing completion. In accordance with the decision of Assets, Regeneration and Growth Committee of 8th September 2015 the Council needs to hand over the next development phase, known as Phase 2a This will be achieved by entering into a deed of variation of the Development Agreement to provide for the grant of a development Lease of Phase 2a, being land which is not currently subject to residential occupation. The development lease of phase 2b will be completed once vacant possession of that additional land is obtained, it is anticipated towards the end of 2015.  

Associated with the hand over of this phase, the council needs to obtain vacant possession of a block of residential properties, 1 to 15 The Ridge. The acquisition of these houses is underwritten by a Compulsory Purchase Order with a vesting date of 30th March 2015.

Under the terms of the Development Agreement leaseholders on the estate have been offered the option of reinvesting the value of their existing properties into a shared equity purchase of a new home on the estate, under which agreement the Council would purchase and hold the balance of the equity.

In Phase 2 five leaseholders have opted to take up the Council’s offer and the Council now needs to provide the funding of the equity that it will retain in these five homes so that Countryside can complete the sales and move the leaseholders out of the homes which will need to be demolished for the next phase.

Prior to the grant of the Development Lease of phase 2a the Council needs to extinguish any private rights over the land that may exist in order to enable the development to proceed in accordance with the planning permission.

The majority of this land was formerly public Highway with the remainder being predominantly amenity land associated with the Estate. When the Council promoted the Stopping up Order only one party claimed any private rights and that party has already agreed a deed of release.  The Council is not aware of any other private rights but it needs to appropriate this land to Planning prior to completing the Development Lease so that any that may exist are extinguished and they will not hinder implementation of the planning permission.

Following completion of the appropriation the Council will enter into the Development lease of Phase 2a which will also enable Countryside to construct the social housing needed to rehouse Council Tenants in the remaining phases.