Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: March 11, 2025

Purpose: Cabinet is recommended to approve:   (1)   The proposed Heads of Terms of the Development Agreement. (2)   Entering into an unconditional development agreement with developer London Square.  

Content: Cabinet:   (1)          agreed to prioritise the number of affordable homes in the Lea Bridge Station Sites scheme by increasing the percentage from 50%, included within the original development agreement, to 100% and to update the commercial deal as set out within the financial implications included within exempt Appendix 6 of the report;   (2)          delegated authority to the Strategic Director of Place to agree the final terms and authorise the Deed of Variation to the Development Agreement;   (3)          delegated authority to the Strategic Director of Place to enter into all legal agreements pursuant to the Development Agreement; and   (4)          noted that, as a result of the amended planning authority, the proposed development has changed since the Cabinet decision of October 2022 which approved appropriation of the land. One additional property is affected, and the Council intends to appropriate the land as per the October 2022 Cabinet decision, but in line with the new proposed development.   Options & Alternatives Considered The only other option available to the Council would be to not proceed with the development and terminate the Development Agreement. This option is not recommended as it would mean that the scheme would not be delivered and the benefits of 387 affordable homes, new station entrance and plaza, commercial and cultural floorspace and an improved public realm would not be realised. Another disbenefit of not proceeding with London Square is that the Council will have incurred sunk costs which are unrecoverable. Further justification for proceeding with the current development with partner London Square is that securing another partner to deliver the scheme would be extremely challenging. The sites are subject to complex constraints, i.e. the need for significant utilities works and land swap agreement with Network Rail. There are several factors which would make the development unattractive to any other developer. Given both the Council and London Square have invested heavily in the development and have secured significant grant, both parties remain committed to delivering the scheme. Procuring another developer would also result in further costs for the Council, as well as significant delays to achieving a start on site, which would jeopardise the existing GLA grant allocation. Proceeding with London Square and the current proposal ensures the delivery of significant benefits and demonstrates value for money/ best value for the Council. The current strategy also satisfies any procurement challenge and Section 123 issues, as demonstrated in Exempt Appendices 4 and 5.