DELEGATED POWERS REPORT NO SUBJECT: Stonegrove Spur Road Regeneration Lease for a Substation Phase 2a

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1 DELEGATED POWERS REPORT NO SUBJECT: Stonegrove Spur Road Regeneration Lease for a Substation Phase 2a Control sheet All reports 1. Governance Service receive draft report Name of BGO Andrew Charlwood Date 02/06/ Governance Service cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained (report author to complete) 5. Trade Union response received (Staffing issues only) 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained (report author to complete) 8. Equalities & Diversity clearance obtained (report author to complete) 9. The above process has been checked and verified by Director, Head of Service or Deputy (report author to complete) 10. Signed & dated report, scanned or hard copy received by Governance Service for publishing 11. Report published by Governance Service to website Name of BGO Andrew Charlwood Date 06/06/2011 Name of Fin. officer Debbie Edwards Date 01/06/2011 Name of Res. officer Siobhan O Donoghue Date 18/06/2011 Name of TU rep. N/A Date Name of Legal officer Tobenna Erojikwe Date 06/06/2011 Name of P&P officer Andrew Nathan Date 03/06/2011 Name of officer Andrew Nathan Date 03/06/2011 Name Craig Cooper Date 31/05/2011 Name of BGO Andrew Charlwood Date 09/06/2011 Name of BGO Andrew Charlwood Date 09/06/2011 Officer reports: 12. Head of Service informed report is published and can be implemented. Name of BGO Date Cabinet Member reports: 13. Expiry of call-in period Date 14. Report circulated for call-in purposes to Name of BGO Business Management OSC members & Date copied to Cabinet & Head of Service Date Andrew Charlwood 09/06/2011

2 ACTION TAKEN BY CABINET MEMBER(S) UNDER DELEGATED POWERS (EXECUTIVE FUNCTION) Subject Stonegrove Regeneration Phase 2a- Substation Lease Cabinet Member(s) The Leader of the Council Date of decision 9 June 2011 Date decision comes into effect Summary Officer Contributors Status (public or exempt) Wards affected Enclosures Reason for exemption from call-in (if appropriate) 9 June 2011 To approve the terms agreed for the grant of a lease for a Substation on Phase 2a, of the Stonegrove Spur Road Housing Estate Siobhan O Donoghue, Principal Valuer Public Edgware Drawing no: 10930_MP_74 N/A Contact for further information: Siobhan O Donoghue, Property Services, Serial No. 1341

3 1. RELEVANT PREVIOUS DECISIONS 1.1 Cabinet 27 February 2006 (Decision item 4) resolved to (a) proceed to develop proposals for the regeneration of the Stonegrove Spur Road estates; (b) approved Heads of Terms for a Preliminary Development Agreement (negotiation agreement) between the Council, Family Mosaic Housing Association and Unitary Ltd; and (c) delegated approval of the final arrangements to the Cabinet Member for Regeneration. 1.2 DPR (add reference number), 6 April 2006 the Cabinet Member for Regeneration and Development approved by delegated powers the Heads of Terms for a Negotiation Agreement between the Council and its partners. 1.3 Cabinet, 18 June 2007 (Decision item 6) approved the final terms of the Principal Development Agreement and legal arrangements be approved by the Cabinet Member for Regeneration and Development under Delegated Powers. 1.4 Cabinet Resources Committee, 2 September 2008 (Decision item 11) approved amendments to the previously agreed financial provisions and other relevant matters in the Principal Development Agreement. 1.5 DPR 895, 17 September 2009 the Cabinet Member of Community Services approved by delegated powers a deed of variation to the Principal Development Agreement (PDA) that would enable the PDA to become unconditional on or before the first anniversary of entering into the PDA due on 24 September DPR 900, 23 September 2009 the Cabinet Member for Community Services approved by delegated powers an extension to the First Expiry Date as defined in the PDA. 1.7 DPR 906, 28 October 2010 the Cabinet Member for Community Services approved by delegated powers a further extension to the First Expiry Date as defined in the PDA. 1.8 DPR 942, 24 November 2009 the Cabinet Member for Community Services approved by delegated powers the final terms of the PDA as varied in a deed of variation dated 1 October The Cabinet Member also agreed the execution of the following documents: (i) Estate Management Deed; (ii) Strategic Indemnity Agreement (SIA) known in the PDA as the CPO Indemnity Agreement; (iii) transfer of affordable development stage 1a to Family Mosaic Housing and stage 1b and 1c to Unitary Ltd; (iv) Supplemental Agreement to the Section 106; and (v) PDA becoming unconditional in order that the Stonegrove and Spur Road Estates Regeneration scheme may proceed. 1.9 DPR 1042, 19 March 2010 the Cabinet Member for Housing, Planning and Regeneration approved by delegated powers the grant of a temporary works licence to permit Unitary Ltd and Family Mosaic Housing to enter onto the site to undertake preliminary works for Stonegrove Regeneration.

4 1.10 DPR 1138, 18 August 2010 the Cabinet Member for Housing and Regeneration approved by delegated powers the grant of a temporary works licence to permit Unitary Ltd and family Mosaic to enter onto the site to undertake preliminary works for Stonegrove Regeneration. 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The re-development of Stonegrove and Spur Road Estate is in accordance with the ambitions and policy objectives of The London Plan and the Barnet Unitary Development Plan. 2.2 The regeneration and development supports Barnet s Corporate Plan A Successful London Suburb. These sets out the Council s key corporate priorities, including to ensure residents continue to feel that Barnet is a place where people from different communities get on together, including through effective management of our regeneration programmes. 2.3 This scheme will make a significant contribution to the Council s Local Area Agreement housing targets and underpins the ambition and policy objectives of the Council s Housing Strategy to provide additional homes. 3. RISK MANAGEMENT ISSUES 3.1 The first series of units at Sterling Green are due for handover and Barratt Evolution are unable to proceed with meter installation and testing until cables have been laid and the substation is switched on. Without a lease for the substation the hand over of units will be delayed. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 The Stonegrove and Spur Road Regeneration Scheme will replace 417 homes and provide 520 new homes to deliver a mix of 937 affordable, intermediate and private sale flats and houses with new community facilities, including a community centre. The Council will have 100% nomination rights to the new affordable housing units and re-housing offers will be made to all the existing secure tenants on the existing housing estates. Thus the regeneration scheme will provide a new area of mixed tenure housing and will make this part of the Borough a better place to live, leading to improved community cohesion in an area with a highly diverse population. 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 5.1 There are no procurement, performance and value for money, staffing, IT or sustainability implications. All of the Council s costs relating to the grant of the substation Lease will be recovered from Barratt Evolution in accordance with the Principal Development Agreement 24 September The property implications are set out in paragraph 8 below.

5 6. LEGAL ISSUES 6.1 The Land that is subject to grant of the substation Lease is currently held by the Council as Planning Land. The relevant ministerial consent required for disposal of Land held by the Council for planning purposes (where the disposal is for less than the best consideration that can be reasonably obtained), pursuant to Section 233 of the Town and Country Planning Act 1990, have been obtained. 7. CONSTITUTIONAL POWERS 7.1 Constitution, Part 3, Responsibility for Functions, paragraph 3.2 states the functions allocated to individual Cabinet Members and provides that the Leader of the Council may discharge any Executive function. 8. BACKGROUND INFORMATION 8.1 The Council is currently working with their partner Barratt Evolution Limited and Family Mosaic Housing Association for the delivery of the Stonegrove Spur Road Housing Regeneration. Phase 1, 3a and 3b have been transferred and the Council and its partner have satisfied all conditions precedent on Phase 2a. 8.2 However, in accordance with the Principal Development Agreement dated 24 September 2008, it is necessary for the partner to meet golden brick before the land is transferred. This has not yet happened and the ownership of Phase 2a remains with the Council. The current sub-station on the estate is insufficient and will not meet the needs of the new estate. Therefore, it is necessary for a new facility to be provided on this phase, which will assist in servicing the new units. 8.3 It is recommended that a lease be granted to Southern Electric Power Distribution Plc for the purposes of a sub-station on the following terms: (i) Tenant Southern Electric Power Distribution Plc (ii) Term 99 years (iii) Rent 1.00 per annum (iv) Permitted Use An electricity sub-station in connection with the transmission and distribution of electrical energy (v) Repair To keep the property in good and substational repair (vii) Assignment The Tenant will not assign or sublet the whole or any part of the property without the prior consent of the landlord such consent not to be unreasonably withheld (viii) Nuisance The Tenant shall not do anything which may cause a nuisance inconvenience or disturbance or cause loss to the Landlord or any owner or occupier of any nearby property save that nothing in this Lease shall in any way prevent the Tenant from using the Property in connection with the Permitted Use

6 8.4 On completion of the lease the sub-station can switched on to service the new units on the estate. This is to avoid any delay in the handover of properties to Family Mosaic Housing Association. 9. LIST OF BACKGROUND PAPERS 9.1 None. 10. DECISION OF THE CABINET MEMBER(S) I authorise the following action 10.1 That a lease be granted to on the terms set out above. Signed Interim Leader of the Council Date 9 June 2011

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