Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: January 27, 2025

Purpose:

Content: RESOLVED:   1.  It was agreed to accept additional grant funding of £3m from the Greater London Authority (GLA) in accordance with the agreement and delegate to the Interim Group Director, Finance and the Director Legal, Democratic and Election Services to agree the final grant funding agreement terms.  This funding will go toward the expenditure of the GLA Civic Partnership Programme (CPP).   2.  The granting of a 25 year lease of 161 Northwold Road, E5 8RL on the proposed Heads of Terms as outlined in Exempt Appendix 1m was approved.   3.  It was delegated to the Interim Group Director of Finance and the Director of Strategic Property Services authority to agree to the lease, all commercial terms and any associated documentation and ensure that it represents best consideration.   4.  Authority was delegated to the Director of Legal, Democratic and Electoral Services to complete the lease and all other relevant and ancillary legal documents arising to complete the transaction.   5.  The CIL scheme summarised below and set out in section 11 was approved:   S106 2025/26 £'000 Capital 570 Total CIL Capital for Approval 570   6.  The s106 scheme summarised below and set out in section 12 and section was noted:   S106 2024/25 £'000 Capital 198 Total S106 Capital for Noting 198   7.  The106 scheme summarised below and set out in section 13 and section was noted:   S106 2024/25 £'000 Revenue 71 Total S106 Revenue for Noting 71   8.  The capital adjustments below was noted:   Current Directorate 2024/25 Capital Adjustments   £'000 Non Housing 200 Housing 0 Total 200   REASONS FOR DECISION   The decisions required are necessary in order that the schemes within the Council’s approved Capital programme can be delivered and necessary to approve the property proposals as set out in this report.   In most cases, resources have already been allocated to the capital schemes as part of the budget setting exercise but spending approval is required in order for the scheme to proceed. Where, however, resources have not previously been allocated, resource approval is requested in this report.   To facilitate financial management and control of the Council's finances.   'Connecting Hoxton' Greater London Authority (GLA) Grant Award:  Improvements to Hoxton public realm and community facilities will deliver long term benefits to residents and businesses in Hoxton. The proposed interventions are recommended based on the impacts against the GLA Civic Partnership Programme objectives of expanding the public realm; strengthening representation and authorship in physical regeneration; and addressing the climate and ecological emergencies.   The GLA contribution plays a crucial role in helping the Council achieve its objectives related to supporting existing green and sustainable strategies, addressing the climate emergency, improving inclusivity and connectivity and improving community life.   Proposed Granting of a Lease of 161 Northwold Road, E5 8RL: The Council’s preferred strategy for this asset is to lease it out in order to obtain a rental income stream. This strategy is subject to identifying a suitable tenant with the ability to manage the building effectively and meet the obligations of a commercial lease.   The Council has received a proposal at a commercial rent that will also ensure the building is put to good use by a well respected organisation with a clear and comprehensive business plan and benefits to the local community. Capital improvements including to the lift, windows and mechanical and electrical installations will be delivered by the proposed tenant within the first three years of the lease, subject to a reasonable rent free period. The tenant’s business plan can be viewed at Exempt Appendix 2   DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED   'Connecting Hoxton' Greater London Authority (GLA) Grant Award: Do nothing/do not accept the grant funding:   ·  The improvements to Hoxton’s community facilities, public realm, landscaping and biodiversity would not be realised. ·  There would be a risk to the Council’s reputation for not accepting external funding to deliver the project as it would not represent best value.   Proposed Granting of a Lease of 161 Northwold Road, E5 8RL: No action. This is not tenable because the current use of the building by Core Clapton is on a temporary and flexible basis. If it was terminated without another tenant ready to take over, the Council would face very high void costs in securing and managing this building.   Disposal. The Council is looking for funding opportunities for “invest to save” measures and transformational revenue spend. There is the potential for capital receipts from property disposals to be used, with the appropriate permissions, for this purpose. Disposal of this asset was considered but rejected on the basis that a viable commercial proposal has been identified.   Corporate Use. There are no viable alternative corporate uses for this asset. The size, type, planning and local listing status of the asset means conversion to temporary accommodation or specialised supported housing would not be viable.