Decision Maker: Cabinet

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: March 24, 2025

Purpose:

Content: RESOLVED:   1.  That the scheme for Finance and Corporate Resources Directorate as set out in section 11 was approved as follows:   Scaffolding 10-16 Ashwin Street: Resource and approval of £64k in 2025/26 is requested to purchase the scaffolding and to include it in the future disposal subject to the buyback restriction.   2.  The disposal of 10-16 Ashwin Street E8 1EA shown for identification purposes only edged red on the plan at Appendix 1; disposal of 2, 4, 6 and 8 Ashwin Street E8 1EA shown for identification purposes only edged red on the plan at Appendix 2; and the disposal of 1-7 Ashwin Street E8 1EA shown for identification purposes only edged red on the plan at Appendix 3, was authorised.   3.  Authority to the Group Director of Finance to agree all commercial terms of the transactions was delegated.   4.  Authority to the Director of Legal, Democratic and Electoral Services to settle, agree and enter into all documentation necessary for the transactions was delegated.   5.  That the s106 scheme summarised below and set out in section 12 was approved:     2024/25 £'000 2025/26 £'000 Total Revenue 1,241 1,241 2,482 Total S106 Revenue for Approval 1,241 1,241 2,482   6.  That the s106 scheme summarised below and set out in section 13 and section was noted:   S106 2025/26 £'000 Capital 337 Total S106 Capital for Noting 337   7.  The acceptance of £2.241m grant funding from the National Lottery Heritage Fund to deliver the Reimagining Hackney Museum project as set out in section 14, was approved.   8.  That the Quarter 3 Capital Monitoring for the period ending 31 December 2024 in section 14 was noted.   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.   Proposed Property and Land Disposal of Ashwin Street Sites, 10-16, 2-8, 1-7 Ashwin Street, London, E8 3DL: The building at 10-16 Ashwin Street is in a very poor condition and major works are required to set the building up for use beyond April 2025. It is not financially viable for the Council to incur this expenditure.   Meanwhile, 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.   DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED   5.1 Proposed Property and Land Disposal of Ashwin Street Sites, 10-16, 2-8, 1-7 Ashwin Street, London, E8 3DL:   No action: This course of action is not tenable because the current occupation by V22 at 10-16 Ashwin Street is not sustainable without major works being undertaken.   Terminate the occupation by V22 and leave vacant with no further action: Leaving the building vacant would incur substantial security and other costs, and present void risks including squatting. It would involve reputational risks and leave the Council open to enquiries or challenges from local residents and other interested parties.   Undertake repair and refurbishment works to facilitate a studio/ workspace letting: The Council would need to take on a major capital project in order to set this building up for a long term commercial letting as studios or workspace. The Council is not in a position to commit the level of capital expenditure and resources required.   Other corporate objectives: The longstanding use as artist studios, and the allocation of the site in the Dalston Plan SPD of 2025 for mixed or commercial uses, means there is a high risk that planning consent would not be achieved in the short/ medium term for conversion to straight residential use, including temporary accommodation and specialised supported housing. A developer might be able to take a longer term view on this, but it is not viable for the Council to hold very costly and high risk buildings in such a speculative way.   Retain 2-8 Ashwin Street and or 1-7 Ashwin Street: These pieces of land could be kept separate and retained by the Council for possible future development. However, it is unlikely to be a project the Council would take on in the foreseeable future. The Council would be exposed to a significant construction and development risk at a time when there is great uncertainty in the market. In any event, it is possible these pieces of land could have a higher value when coupled with 10-16 Ashwin Street, as the viability for development may be enhanced. The Council can include an overage provision in the sale so that it can benefit from any future increases in value as a result of development. However, such provisions can be detrimental to the initial capital value and marketability. The most immediate issue is to dispose of 10-16 Ashwin Street; the Council can decide on whether to include 2-8 and 1-7 depending on the proposals received.