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RESOLVED:
 

1.1.        
To approve that the Council enter into a Headlease
with Regen Capital or an associated entity for 125 years of 85
units at the RCG development as detailed in this report, with lease
payments over 50 years but with a 2 year rent free period at the
start of the term of the Headlease and the option to buy the
freehold interest for a £1 at the end of the 50th year of the
term of the Headlease and to delegate authority to the Corporate
Director of Housing in consultation with the Corporate Director of
Resources, Lead Member for Finance and Lead Member for Housing to
enter into final agreements subject to final financial and legal
due diligence.
 

1.2.        
To approve that the Council enter into an Underlease
with Mears or one of its subsidiaries for 10 years of 85 units at
the RCG development as detailed in Sections 5 and 6 of this report
and delegate authority to the Corporate Director of Housing in
consultation with Corporate Director of Resources, Lead Member for
Finance and Lead Member for Housing to enter into final agreements
subject to final legal due  diligence.

 

1.3.        
To note that the proposal set out in this report can
only progress once final funding is confirmed by Regen Capital,
which is subject to financial funding rates and macroeconomic
conditions that will be prevalent on the day of
completion.

 

1.4.        
To delegate authority to the Corporate Director of
Housing, in consultation with Corporate Director of Resources, the
Executive Mayor, Lead Member for Finance and Lead Member for
Housing, to renegotiate terms of the Headlease or Underlease,
should this be required due to macroeconomic conditions prior to
completion, but not to deviate by more than £2.00m from
reported benefits of this proposal as set out within this
report.

 

1.5.        
To note that the Council will receive 85 affordable
housing units subject to the approval by the Council’s Local
Planning Authority to a variation of the existing S106 Planning
Agreement, to provide much needed affordable homes which are
currently being sourced from the private rental market at a
premium.

 

1.6.        
To note subject to Recommendation 2.3 that the
Council will hold 100% Nomination rights for all 85 affordable
units for the period of the lease as (originally) required under
the S106 Agreement entered into between
the Council’s planning authority and Brick by Brick Croydon
Ltd, the developer (BBB).