Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 18, 2024

Purpose: Seeking decision on the final phase of the Woolwich Estates programme

Content: Agreed to continue with the development of the Maryon Road and Maryon Grove site (part of the former Woolwich Estates) pursuant to the Development Agreement in place noting the intent to vary the tenure mix as set out in para 4.17 of this report which shows 50% of the homes will be affordable across the three ‘Woolwich Estates’ schemes.   Noted that the Paragon Asra Housing Limited's Shared Ownership Units on Morris South, Maryon Road and Maryon Grove will become social rented homes and will be subject to the Council’s nomination agreement.   Noted, Currie & Brown, on the Council’s behalf, have undertaken a due diligence review of Lovell Partnerships Limited’s viability and underlying assumptions as part of the options assessment. The approach and assumptions were found to be reasonable.   Delegated authority to the Director of Regeneration, Enterprise and Skills to enter into a Deed of Variation (and/or such other legal documentation as may be required) to amend the Development Agreement so as to: ·        change the tenure mix as proposed; ·        reinstate an overage[1] provision for this phase; ·        make use of an updated financial model to ascertain viability and land value; and ·        undertake a viability assessment to consider the Council purchasing the private sale units, and if viable, authority to acquire these properties.   Noted the varied tenure mix proposed in this report will result in a reduction in the number of units to be received by the Council from that agreed by Cabinet in July 2022, with a corresponding decrease in the price payable of c£10m.    Noted that this will ensure timely delivery of the new Council and Registered Provider homes and facilitates the creation of mixed and balanced communities at Maryon Road and Maryon Grove.   [1] Overage is a contractual mechanism that will allow the Council to benefit from any future increase in the value from the sale of units.