The Executive Decision meeting of Waltham Forest Council on Thursday 25 January 2024 was scheduled to discuss the letting of nursery units within the Coronation Square regeneration scheme. The primary focus was on the proposed agreement with Nappy Gang Day Nursery Limited for units 103 & 104.

Coronation Square Nursery Letting

The meeting was scheduled to consider the proposed letting of nursery units 103 & 104 at Coronation Square, located on Oliver Road, Leyton, London E10. Coronation Square is described as the council's flagship regeneration scheme, aiming to deliver 750 new homes, with 50% designated as affordable. The development also includes new sports, leisure, health, nursery, community, and commercial facilities.

The report pack indicated that Nappy Gang Day Nursery Limited is the incumbent nursery provider on the site and is proposed to continue its operations in the new facility. The recommendation was for Councillor Ahsan Khan, Deputy Leader (Housing and Regeneration), to approve the council entering into an agreement for lease and/or lease with Nappy Gang Day Nursery Ltd. The report also noted that the heads of terms with Nappy Gang Day Nursery Ltd had been agreed.

The report detailed that the Coronation Square development, which began construction in May 2021, is being delivered through a Development Agreement between the Council and its delivery partner, Taylor Wimpey. The scheme received planning permission in March 2020 and includes significant benefits such as 750 new homes, a new public square, community facilities, a new Health Hub, and a District Heating Network. The nursery and sports centre are anticipated to be completed by July 2024.

The report stated that the lease terms negotiated with Nappy Gang Day Nursery Limited were intended to represent current market value and satisfy the council's statutory requirement for Best Consideration under section 123 of the Local Government Act 1972¹. This approach was recommended to mitigate the potential for delaying the wider regeneration programme. An option to undertake an open market procurement was considered but deemed likely to cause delays.

The report also highlighted how the development aligns with the Council's strategic priorities, including policies from the Core Strategy such as CS2 (Improving Housing Quality and Choice), CS3 (Providing physical and social Infrastructure), and CS15 (Well Designed Buildings, Places and Spaces). It also contributes to the housing delivery targets set out in Building for the Future: Delivering Housing for Everyone in Waltham Forest. The project also presented opportunities for construction training, apprenticeships, and jobs, secured via a Section 106 agreement².

In terms of implications, the report noted that the lease to Nappy Gang Day Nursery Limited is expected to be an improvement on their current rental value and aligns with the original business case for the Coronation Square development. No capital contribution from the Council for the nursery's fit-out was required. The report also referenced the Equality Act 2010³, stating that the overall Coronation Square project is expected to have significant positive impacts, including the provision of affordable housing and new community facilities, with no negative equality impacts identified from the proposed nursery letting. Sustainability aspects were also mentioned, including the provision of a District Heating Network, enhanced walking and cycling connections, and the planting of 200 trees.