Agenda item

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-020-2015/16).

(1)        That Agreement be given to:

            (i)         a variation of the Heads of Terms for the Development Agreement with CK            Investment (Loughton) Ltd, to allow a Novation Agreement and Deed of Variation and   Consent which changed the party responsible for constructing the development to       Higgins Homes plc and they be granted an under-lease accordingly; and

            (ii)        a variation of the lease to permit access for tenants to carry out repairs on the       neighbouring car parking area, but that a clause be inserted to prevent obstruction;

(2)        That the Asset Management and Economic Development Portfolio Holder be authorised to agree minor amendments to the documentation, in consultation with the Director of Neighbourhoods; and

(3)        That the Call-In procedure with respect to this decision be waived on the grounds of Urgency in order to prevent further delay to the start of the development.

The Portfolio Holder for Asset Management & Economic Development presented a report on the Development Agreement for the site of the former Sir Winston Churchill Public House in Loughton.

The Portfolio Holder reminded the Cabinet that the Council had previously agreed Heads of Terms with CK Property Investments (Loughton) Limited for the redevelopment of the site of the former Sir Winston Churchill Public House in Loughton. This decision had permitted the Portfolio Holder to agree minor variations to the Agreement; however, CK Property Investments (Loughton) Limited had requested further variations which were not considered minor and were more material in nature. Firstly, a variation to permit access for tenants to carry out repairs on the neighbouring car parking area, and secondly, a novation agreement to change the identity of the party responsible for constructing the development to Higgins Homes Plc. The proposed variations did not affect the design or scale of the development. The site had been vacant for some time, and a waiver of the call-in arrangements had been requested of the Chairman of Council to prevent further delay to the start of the development.

A local Member for Loughton Roding felt that the former Public House had been demolished in undue haste and that the entrance to the Broadway now looked decidedly ugly. However, the Member supported the proposals as it would accelerate the development of the site. There was also a request to replace the blue hoarding currently in situ. The Council’s Consultant undertook to raise the issue with Higgins Homes Plc, and the Portfolio Holder agreed that more attractive hoarding could be used, especially if it advertised the Broadway itself. It was expected that Higgins Homes Plc would want to start on site in the very near future.

Decision:

(1)        That Agreement be given to:

            (i)         a variation of the Heads of Terms for the Development Agreement with CK            Investment (Loughton) Ltd, to allow a Novation Agreement and Deed of Variation and   Consent which changed the party responsible for constructing the development to       Higgins Homes plc and they be granted an under-lease accordingly; and

            (ii)        a variation of the lease to permit access for tenants to carry out repairs on the       neighbouring car parking area, but that a clause be inserted to prevent obstruction;

(2)        That the Asset Management and Economic Development Portfolio Holder be authorised to agree minor amendments to the documentation, in consultation with the Director of Neighbourhoods; and

(3)        That the Call-In procedure with respect to this decision be waived on the grounds of Urgency in order to prevent further delay to the start of the development.

Reasons for Decision:

The previous decision gave authority for the Asset Management and Economic Development Portfolio Holder to agree minor amendments to the contract documentation. However, matters had now arisen, which were considered to be outside of the scope of “minor” amendments and as such the report sought the Cabinet’s approval for the amendments.

Other Options Considered and Rejected:

To not agree the proposed variations. However, this would delay the approved development scheme for the site, which had been vacant for several months now.  In addition, this would also cause further delay to the regeneration benefits sought by the Debden Town Centre and Broadway Development Options Brief.