Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 18, 2025

Purpose: A formal decision paper to determine whether the Council enters into a transaction to amend the leasing structure for the Stratford Centre, Morgan House and surrounding land

Content: Decision   For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree:   i)  Entering into new leases with the current leaseholder allowing comprehensive redevelopment on Stratford Island in line with Community Wealth Building objectives, with an option expiring in 6 months from the Cabinet decision date, for Newham Council to fit out at its own cost and relocate to Morgan House. ii)  To delegate authority to the Corporate Director of Resources and Corporate Director of Inclusive Economy, Housing and Culture, in consultation with the Lead Member for Finance and Resources and Lead Member for Inclusive Economy, Housing Delivery and Culture to; ·  Carry out further due diligence and finalise heads of terms attached at Exempt Appendix 2, subject to the terms not being materially worse for the Council than those agreed within the Heads of Terms at Appendix 2. ·  Approve final terms on either 2.1. or 2.2 and enter into new leases with the leaseholder; including the arrangement and entering into all necessary legal documentation (subject to legal due diligence) in association with the transaction.   iii)  To note that a further Cabinet decision will be sought in connection with whether to exercise the Option to fit out and re-locate Newham Council services to Morgan House.   Alternatives Considered   a)  There is an option for the Council to ‘do nothing’ and not to intervene with any development that Leaseholder would potentially undertake or not. However, this is not the recommended approach as it would likely result in; a) the long leaseholder pursuing a scheme that delivers financial returns over long term CWB benefits in line with the Stratford Vision; or b) no or little change on the Stratford Island site due to the current lease structure rendering any development unviable.   b)  The do nothing scenario would inhibit any social value benefits which could be derived from a viable scheme, and therefore limit any direct or indirect CWB benefits from developing the site.