MUNICIPAL YEAR 2012/2013 REPORT NO. 47 MEETING TITLE AND DATE: Cabinet 18th July 2012 REPORT OF: Director of Health, Housing and Adult Social Care Contact officer and telephone number: Sarah Carter 020 8379 4260

1. EXECUTIVE SUMMARY 1.1 It is important to note that, at the request of the residents, the title of the

project has been changed from the Coverack Regeneration to the New Avenue Regeneration.

1.2 This report details the strategic delivery approach for the New Avenue Regeneration project. A comprehensive redevelopment which has the potential to deliver new Council owned housing.

1.3 In September 2011, a report was brought before Cabinet justifying the prioritisation of an estate renewal scheme for Coverack Close and Shepcot House (key decision reference number 3347). At that Cabinet meeting a resolution was made to demolish Shepcot House (118-89) and the six low-rise blocks at Coverack Close (1-72) whilst further consultation and exploration of options would be required on the future of Beardow Grove.

1.4 Since the September 2011 Cabinet report, officers have undertaken an extensive consultation process with the residents both living in the affected blocks and within the wider neighbourhood. The purpose of the consultation was to gauge whether there was local support for the principles of the regeneration, to enable residents to play an important role in shaping the preferred design option and to understand whether residents from Beardow Grove support the inclusion of that particular block within the overall redevelopment. The process and the outcome of the consultation are described within this report.

Subject: New Avenue (Coverack) Regeneration: Development and Procurement Strategy Key Decision Number KD3519 Wards: Cockfosters

Agenda - Part: 1

Cabinet Member consulted: Cllr Oykener

Item: 17

1.5

The report also sets out the process that the Council will need to follow to successfully deliver the proposed redevelopment. This report therefore includes the development strategy for the New Avenue Regeneration; justifying why the recommended approach has been favoured over other options. The report also includes the procurement strategy that will be implemented, including the proposed decision making process.

2. RECOMMENDATIONS 2.1 Authorise the commencement of the New Avenue Regeneration programme

in accordance with the contents of the report. The preferred option would also include the Addison House Site subject to clarification of change of use and financial negotiations of the transfer with Schools & Children’s Services

2.2 Cabinet to note the consultation process that has been undertaken by Council officers and to note the outcome of that process

2.3 Cabinet to make a resolution to demolish Beardow Grove (1-19) and to include this block within the New Avenue Regeneration project.

2.4 Cabinet to endorse the indicative development and procurement strategies.

2.5 Cabinet to authorise the placing of an OJEU advertisement for the marketing of the New Avenue Regeneration project.

2.6 2.7

Cabinet to authorise the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Service to authorise the contents of the OJEU advertisement, the selection of the short-listed bidders, at the Pre-Qualification Stage, at the Outline Solutions Stage and at the Detailed Solutions Stage. Cabinet to note that the recommendation to appoint the preferred bidder at the Final Tender stage will be brought back to Cabinet for decision which will include a full financial viability appraisal.

2.8 Cabinet to authorise Legal Services to advise, and commence the preparation of documentation in order to make a Compulsory Purchase Order (CPO) in exercise of the Council’s powers under section 226(1) (a) of the Town & Country Planning Act 1990 as amended by the Planning & Compulsory Purchase Act 2004 in respect of the properties identified in Appendix 1, and outlined in red on the attached plan, in the event that negotiated agreement is not reached on the repurchase of properties. The Director of Finance and Corporate Resources will be responsible for seeking the Cabinet approval of the CPO in due course.

2.9 Cabinet to authorise the issuing of Ground 10 and Demolition Notices under the Housing Act 1985 in respect of tenanted properties in Shepcot House (118-189), Coverack Close (1-72) and Beardow Grove (1-19).

2.10

Cabinet to authorise the purchasing of the leasehold interest in the leased properties in Shepcot House (118-189), Coverack Close (1-72) and Beardow Grove (1-19), using the budget identified in the Part 2 Report. Cabinet to note the proposal to lease vacant leasehold properties to a short life Registered Provider for onward temporary sub-letting on Assured Shorthold Tenancy’s which will earn the council an income.

2.11 Cabinet to authorise the purchasing and appropriation of sites and properties in the location of the initial proposed development site where this is considered to improve the financial viability of the proposed development. Delegating authority to the Director of Health, Housing and Adult Social Care and the Director of Finance Resources and Customer Services to authorise terms for the purchase or appropriation of land and for Legal Services to complete on behalf of the Council.

2.12 Cabinet to authorise the project budget identified in the Part 2 Report delegating authority to the Director of Health, Housing and Adult Social Care to authorise expenditure on consultants and other services, as required to help enable the proposed development.

2.13 Cabinet agrees to delegate approval of decanting plans to Cabinet member of Housing.

2.14

Notes that Enfield Homes will cease to re-let void properties in Shepcot House, Coverack Close and Beardow Grove, however empty properties may be used to meet Housing Need in other ways during development of the estate renewal scheme.

2.15 Cabinet to authorise a decision to be taken on the disturbance allowance

approach, under delegated powers, to the Assistant Director of Council Housing, in consultation with the Assistant Director of Community Housing Services.

3. BACKGROUND Please note that at the request of the residents, the title of the project has been changed from the Coverack Regeneration to the New Avenue Regeneration. 3.1 Phase 1 of the Council’s estate renewal programme has both Ladderswood

and Highmead projects at an advanced stage; with a development partner appointed for Ladderswood and a development partner appointed and planning consent in place for Highmead.

3.2 Phase 2 of the Council’s estate renewal programme is underway with Cabinet

agreeing in September 2011 for officers to take forward projects to investigate the feasibility of the regeneration of New Avenue (Coverack) and the Alma Estates as well as a number of small sites (Parsonage Lane, Forty Hill, Jasper Close, Lavender Hill, St Georges Road and Tudor Crescent).

3.3 The New Avenue Regeneration area is located in the Cockfosters ward of the

London Borough of Enfield; 0.9 miles to Southgate Tube Station and 1.0 mile to Oakwood Tube Station.

3.4 The New Avenue Regeneration area includes Shepcot House (118-189),

Coverack Close (1-72) and Beardow Grove (1-19). The site also includes Hood Avenue Open Space to the west of the estate. It is anticipated that potential development partners may wish to expand the development site to improve the viability of the project and to help improve access to the site. This will be explored as part of the competitive dialogue process and any amendments to the site will be made by the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services after consultation with the Cabinet Member for Housing and Area Improvement.

3.5 As part of the options appraisal LBE Housing and Schools & Children’s Services have explored the possibility of including the Addison House site within the proposed development. The potential receipt from the future disposal of Addison House will contribute to a project which will rationalise and improve accommodation for the Pupil Referral Unit service currently accommodated at various sites across the borough. However as part of these negotiations Schools & Children’s Services has given an ongoing commitment to Housing to include the site within the new development. The inclusion of this site will help with project viability and in particular with enabling tenant decant and rehousing options, which is key to the phasing plan and avoid the need for double-decanting. As the scheme was being worked up with the residents, the option of including Addison House was viewed positively as it provided more choice for residents.

JUSTIFICATION FOR PRIORITISING THE NEW AVENUE REGENERATION 3.6 The justification for prioritising the New Avenue Regeneration is two-fold;

firstly consultation carried out in August 2011 and February 2012 indicates that the principles of the regeneration are supported by local residents and secondly the condition of the stock is poor.

3.7 The Large Panel System (LPS) construction of Shepcot House and Coverack

Close is similar to that on the Ladderswood Way estate, and in particular, Curtis House. Buildings on the estate are nearing the end of their anticipated design life and as such their condition will continue to deteriorate.

3.8 An independent review of the condition of the buildings has advised that repair

of these buildings would require significant investment to address potential issues affecting their structural integrity and to restore and maintain the robustness and condition of the external fabric. Also, given the specific form of construction of these buildings, this means that should re-modelling ever be considered to improve internal layout, then it is unlikely that this would prove viable for both practical and financial reasons.

3.9 It is therefore not economical for the Council to continue to maintain this

method of construction, bring the properties up to Decent Homes standard and to make further improvements that might be required by residents.

3.10 The area also suffers from high levels of deprivation with 85 out of the current

128 secure tenants claiming Housing Benefit as of May 2012 and 19 out of the 33 leaseholders claiming Housing Benefit or Council Tax Benefit.

3.11 Following the design options workshop a tenancy audit of Beardow Grove, Shepcot House and Coverack Close was undertaken to understand tenants housing needs. The audit identified that out of 128 secure tenants on the estate there are 16 known cases of overcrowding (12% of the estate) and 29 under-occupying which represent 22% of the estate. It is likely that a number of residents under-occupying will be affected by government changes to the Welfare Benefit Reform.

PROJECT OBJECTIVES 3.12 The New Avenue Regeneration will take a holistic approach to improving the

local neighbourhood; using the physical improvements as a catalyst to wider social and economic change. The regeneration will re-connect this part of the borough and provide opportunities to meet the needs and ambitions of the local residents.

3.13 There are some key objectives which have been established for this regeneration project; the scheme must be:

• financially viable;

• acceptable in planning terms;

• supported by residents; 3.14 The wider regeneration ambitions are to:

• improve the appearance of the area;

• improve access and linkages to the wider area;

• improve the major green spaces;

• increased opportunities for local people such as access to training and apprenticeship schemes

• consider social enterprise projects and use of local labour and sub-contractors

3.15 Residents are to be at the heart of the regeneration proposals and will be

supported by the Council to play an active role in shaping the future of the area.

CONSULTATION

3.16 The primary scope of the consultation strategy was to consult the residents of the three adjoining estates and neighbouring properties on regenerating the area. The red line drawing below shows the area which was consulted; this includes approximately 650 addresses.

3.17 The strategy used a variety of consultation engagement techniques; these

included:

• letters to every address within the red line;

• a questionnaire (which could be completed and returned either using a stamped addressed envelope or online);

• two road shows were held on site where residents could talk directly to Council Officers and door knocking took place;

• neighbourhood meetings held at De Bohun Primary School;

• resident meetings held at Shepcot Nursery;

• drop in sessions

• door knocking;

• one to one appointments;

3.18 To date the following events and meetings have been held:

New Avenue Consultation Monitor

Date Meeting Title Location

16.08.11 Questionnaire Postal / Online / Door knocking

26.10.11 New Avenue Resident

Panel De Bohun Primary School

23.11.11 New Avenue Resident

Panel De Bohun Primary School

14.12.11 Resident Panel

Elections Shepcot Nursery

16.01.12

Appoint Independent Tenant and Leasehold

Advisor Civic Centre

25.01.12 New Avenue Resident

Panel Shepcot Nursery

03.02.12 Neighbourhood Site-

Walk New Avenue

08.02.12 Neighbourhood

Meeting De Bohun Primary School

10.02.12 Design options

consultation Shepcot Nursery

28.3.12 New Avenue Resident Panel Shepcot Nursery

April/May 12 Tenancy Audit New Avenue

16.5.12 New Avenue Resident Panel Shepcot Nursery

30.5.12 Design Options consultation Shepcot Nursery

3.19 As detailed in the September 2011 Cabinet report; out of the 124

questionnaire responses from August 2011 - 87 respondents were in favour of a full redevelopment option (70%); 19 respondents were in favour of a partial redevelopment (16%), 11 respondents did not answer the question (9%) and 3 respondents did not want any development (2%). 4 respondents were unsure (3%).

3.20 Subsequently, the Council facilitated the setting up of the New Avenue

Resident Panel. This democratically elected group is in place to represent the views of existing residents on the estates as well as having 3 members representing the views of the surrounding neighbourhood.

3.21 The first task of the New Avenue Resident Panel was to appoint an

independent tenant and leasehold advisor. PPCR were successfully

appointed to the position in January 2012 and they have been working closely with residents, the Panel and the Council since then.

3.22 PPCR has been working with the New Avenue Residents Panel to compile an

Aspirations Document for the estate. The document will act as guide for developers on the future layout of the estate and design of new homes from the resident’s perspective.

3.23 The Council has held two design option workshops inviting tenants,

leaseholders and residents from the wider area for comments on the estate renewal proposal and the indicative layouts. Both events were well attended and the exit surveys indicated that residents supported the principles of regeneration and the indicative designs.

3.24 Following the design options workshop a tenancy audit of Beardow Grove,

Shepcot House and Coverack Close was undertaken to understand tenants housing needs. This information will assist architects with the final design proposals for the development. I.e. number of new dwellings, bedsize, support needs and adaptations.

3.25 Since the September 2011 Cabinet report, a further workstream has been the engagement of residents living in Beardow Grove. Council officers consulted with the residents to ascertain whether there was support for these properties to be included within the New Avenue Regeneration.

3.26 The challenge was to ensure that the residents had the information they

needed at this early stage to make an informed decision about their futures. Every resident was contacted and every resident apart from one non resident leaseholder has provided a response as to whether they want to see Beardow Grove included in the regeneration. The engagement techniques employed included a letter, door knocking, a questionnaire and an information pack which included:

• re-housing information for both tenants and leaseholders;

• indicative flat layouts comparing existing space standards with those proposed;

• a plan of the proposed development and

• a sketch of what the scheme may look like; 3.27 A dedicated Housing Officer then arranged one to one visits to discuss the

issues in detail; these visits included off-site meetings with non-resident leaseholders.

3.28 Out of the 19 properties consulted, 13 residents supported the inclusion of Beardow Grove, 3 are against, 2 are unsure and 1 non resident leaseholder failed to respond. Given the response rate and the support for the scheme this report recommends to Cabinet that Beardow Grove be included in the regeneration.

OVERVIEW OF THE INDICATIVE DESIGN SCHEME 3.29 The Council and their architects (HTA Architects) have been working closely

with the residents and in particular the New Avenue Resident Panel to design an indicative scheme for the regeneration of the three estates which meets the objectives set out in 3.11 and 3.12 of this report.

3.30 The purpose of the indicative design option is to provide the Council with a

design solution which has local support and which demonstrates the proposed scheme can be viable. As the process to appoint a development partner / house builder is taken forward it is likely that the bidders will adapt and improve upon the Council’s indicative design option.

3.31 The challenge has been to re-provide as many of the affordable homes as

possible whilst being financially viable and acceptable in terms of building heights and density.

3.32 The indicative proposal will provide approximately 281 new homes; a mixture

of both affordable and private with flats, maisonettes and houses. The final design will be agreed following procurement of the developer and extensive consultation with the New Avenue Residents Panel. A key element of the design is the transformation of Hood Avenue Open Space. During the consultation residents have fed back that whilst open space is important to them, the current layout of Hood Avenue Open Space means that there is Anti-Social Behaviour and many young families do not allow their children to play on the green. The proposal is to provide terraced housing along the edge of the Open Space which will help with improved surveillance of the open space. A reconfigured open space will then be provided in a series of linear parks running through the development. Running underneath the Hood Avenue Open Space and the estate is a culvert which could potentially be opened up as part of the redevelopment works to make an attractive feature for the development.

3.33 Another key area where residents shaped the development was around

building heights. Initial designs showed high rise blocks to around 11 storeys. These were then reduced to 6 storeys in response to the feedback from the residents.

3.34 The new homes are designed to meet the London Housing Design Guide space standards and an exercise to compare existing properties with those proposed demonstrated that the floor area of the new homes will be at least the same size as the current properties.

COMPULSORY PURCHASE ORDER 3.35 As demonstrated by both the Ladderswood and Highmead regeneration

projects; the Council is committed to trying to achieve vacant possession of regeneration sites through negotiation and has a successful track record in doing so.

3.36 There are 33 leasehold interests within the regeneration area, which will need to be bought back in order to enable the development to take place. The Council will work with leaseholders, the Resident Panel and the ITLA, PPCR, (Public Participation Consultation and Research) to produce a leasehold offer booklet. This booklet would set out what leaseholders are entitled to and what rehousing options are open to them. The Council acknowledges the important role resident leaseholders play in the local community and therefore options will be explored whereby resident leaseholders could return to the new development.

3.37 To mitigate the risk of not achieving vacant possession a Compulsory Purchase Order will be run in parallel with the negotiations. This protects the Council’s position and would also be a requirement of any development partner before they would agree to enter into a development agreement with the Council.

3.38 However our experience on Ladderswood Estate and Highmead has proven

that negotiation and our offers to Leaseholders have proven effective and we have successfully agreed terms with them. We are also building into the project home ownership offers such as shared equity schemes.

3.39 This report seeks authorisation to commence the preparation of documents to

make the Compulsory Purchase Order for this regeneration project.

PROCUREMENT 3.40 It is proposed that a single development partner will be appointed to deliver

the entire regeneration project. It is proposed that this development partner will be procured through a competitive dialogue process in accordance with the Public Contracts Regulations 2006. Through this competitive dialogue process a draft Development Agreement will be agreed that seeks to protect the Council’s position, and ensures delivery of the proposed development on a phase by phase basis.

3.41 The competitive dialogue process can be tailored to individual projects to ensure that the procurement process is fit for purpose. The challenge for the Council is to design a process which meets the regulatory requirements, provides the Council with certainty and security over the development whilst being delivered using reasonable resources.

3.42 The competitive dialogue stage is the most resource intensive stage of the regeneration for the Council. External Legal and Financial advisors will need to be procured to advise the Council and help protect its position.

3.43 Residents will be encouraged to co-operate in the dialogue stage.

Involvement could come through design exhibitions where bidders publicly show case their schemes, as well as more formally through the evaluation process, where as with Ladderswood, the resident panel could score the qualitative elements along with Council officers.

3.44 It is anticipated is anticipated that the OJEU Competitive Dialogue procedure costs would be significantly reduced from the Ladderswood Competitive Dialogue process due to increased capacity within the Council to deliver such procurements. External legal advice would still be sought; however significant pieces of work such as the preparation of the tender documents could be handled in-house.

3.45 The competitive dialogue stages process proposed for New Avenue is as follows:

Stage Description Decision Authority

Stage 1: OJEU Contract Notice

Oct 2012

Advertising the requirements for the competitive dialogue process

Director of Health, Housing and Adult

Social Care

Stage 2: Pre- Qualification

Questionnaire

Jan 2013

Selecting participants – selection criteria is based on the company’s capacity and financial standing and

not on how they propose to meet the requirements of the contract,

Director of Health, Housing and Adult

Social Care

Stage 3: Invitation to Participate in

Dialogue

Mar 2013

Once suppliers have been short-listed based on the PQQ the invitation to participate in dialogue officially begins the dialogue stage.

Director of Health, Housing and Adult

Social Care

Stage 4: Invitation to Submit Outline

Solutions

May 2013

An optional stage used to further down select bidders.

Director of Health, Housing and Adult

Social Care

Stage 5: Invitation to Submit Detailed

Solutions

Sept 2013

Refinement of the solutions and to include a fully developed and priced

bid. Further down selection of bidders.

Director of Health, Housing and Adult

Social Care

Stage 6: Invitation to Submit Final Tenders

Nov 2013

Dialogue closes once one or more solutions have been identified which

meet the Council’s needs.

Director of Health, Housing and Adult

Social Care

Stage 7: Cabinet approval of preferred development partner

Jan 2014

Based on the scores at the ISFT stage, Cabinet are recommended to appoint the preferred development

partner.

Cabinet

Stage 8: Contract Award

Feb 2014

The decision to award the contract must be communicated to all

unsuccessful bidders.

Project Manager

DEVELOPMENT STRATEGY 4.0 The preferred development vehicle for the New Avenue Regeneration is a

Development Agreement between the Council and the selected development partner. This is the approach taken for both Ladderswood and Highmead regeneration projects.

4.1 The Development Agreement will include the necessary undertaking to give

assurances to both the Council and the selected development partner that the development will take place. The Development Agreement will also set out in detail the responsibilities of both parties to ensure this happens.

4.2 We will be considering and exploring alternative funding streams during the

procurement process arising from the recent reforms to the Housing Revenue Account.

RECOMMENDATION OF WAY FORWARD 5.0 The consultation demonstrated a strong desire by the residents to see

significant improvements to the buildings and open spaces within the site area as well as wider social and economic benefits. A significant number of residents support the full redevelopment of Shepcot House, Coverack Close, and Beardow Grove.

5.1 The level of investment required to maintain the stock to a safe and

appropriate standard is financially prohibitive. 5.2 Therefore demolition of the existing stock and the re-provision of new housing

is the preferred approach subject to detailed design and viability studies. FULL REDEVELOPMENT OF SHEPCOT HOUSE, COVERACK CLOSE AND BEARDOW GROVE 6. A full redevelopment of Shepcot House, Coverack Close, and Beardow Grove

option would resolve the stock condition concerns and improve the quality of life for residents by redeveloping the existing buildings and delivering new homes that meet the needs of the existing population.

6.1 Discussions have taken place with Planning Policy and Development

Management to agree the planning parameters for any potential development. This has provided a steer on core issues such as acceptable densities, building heights, unit numbers and any potential improvements to open space.

6.2 The initial consultation and engagement exercise has opened a dialogue with

residents and stakeholders on potential estate renewal options. The dialogue will continue with the resident body that has been established.

6.3 A number of development options for the site area have been produced taking into account the views of the residents and key stakeholders; each development option has been subject to a financial appraisal to test economic viability along with consideration of phasing and the impact on the proposed re-housing programme.

6.4 A preferred option has been agreed with the Resident Panel and this will

provide the indicative scheme on which the procurement of a development partner will be based.

6.5 Prior to the demolition of the blocks a re-housing offer document will be

produced for the residents. The re-housing offer document will look to maximise the choice for residents; supporting them in finding suitable alternative accommodation, whether that be in the new build units to be built on the site or elsewhere in the borough.

6.6 The new social housing allocation policy, planned for adoption by Cabinet in October 2012, proposes the ability to alter priorities between groups of applicants for social housing. This will enable Enfield Council to manage the pressures of the decant programme during the redevelopment period, and the supply of homes that becomes available. This will ensure that the decisions made to adjust priorities are transparently made and clearly understood by all stakeholders. 6.7 It should be noted that during the early years of the Council’s estate renewal

programme there will be a reduction in the supply of homes for other households awaiting rehousing, as residents who are decanted increases and takes priority. However this will improve in later years as additional new build homes join the supply side. A decant plan for estate renewal projects to address these issues will be prepared and be subject to approval by Cabinet Member for Housing and Area Improvement.

6.8 However where possible it is the aim of the New Avenue project to enable a single decant for residents which means they only have to move once from their existing home into their new home. ALTERNATIVE OPTIONS CONSIDERED 7. As part of the options appraisal process the Council has explored a number of

delivery and design options. The delivery options include a refurbishment option which involves maintaining the stock, including it in the Decent Homes programme and carrying out the required stock condition works.

7.1 Much of the stock within Shepcot House and Coverack Close is classed as

non-decent. Many of the flats require new kitchens and bathrooms as well new windows to Shepcot House.

7.2 Structural works are also required with Architectural Services having identified

concrete spoiling as well as potential strengthening works to the Large Panel System blocks.

7.3 Government funding to the Decent Homes programme has been cut and

therefore the funds are not available to bring all of the Council’s stock up to decent homes standard and carry out major repairs to the blocks. Tough decisions are required to prioritise which estates benefit from the limited financial resources available.

REASONS FOR RECOMMENDATIONS 8. A full redevelopment option for Shepcot House, Coverack Close, and

Beardow Grove would address the stock condition concerns and improve the quality of life for residents by redeveloping the existing buildings and delivering new homes that meet the needs of the existing population.

COMMENTS OF THE DIRECTOR OF FINANCE, RESOURCES AND CUSTOMER SERVICES AND OTHER DEPARTMENTS 9. Financial Implications

9.1. A financial options appraisal has been carried out on the various

design options. The details of this review contain specific commercial assumptions and as such can be seen in part 2 of the report.

9.2. Consideration was given to the refurbishment of the existing properties

compared to a redevelopment of the New Avenue site alone and jointly with Addison Avenue site as a package. This analysis has been based on an options appraisal carried out by EC Harris on behalf of the council. The model looked at the net cost or benefit of the proposals to the council over a 30 year period.

. 9.3. The detailed analysis for the schemes is included in part 2 of the

report. Initial indications are that the scheme forms a viable redevelopment option. However more detailed financial appraisal work is required as the scheme is developed during market testing and the procurement process to demonstrate the viability of the specific proposals. A development partner for the site would be procured in accordance with the Council’s competitive procurement requirements.

9.4. In addition, the council’s project budget requirement to enable the

delivery of the development has been evaluated and can be seen in the table below. This includes the recruitment of a project management resource and appropriate staff resources to deliver the project.

9.5. A sum for the potential costs of leaseholder buy backs is also included

and will be held in a specific contingency to cover any such costs as they arise. Because of commercial sensitivities, the details of this sum are outlined in the part two report. A protocol would need to be established to ensure that the assets are brought back onto the corporate asset register as they revert to corporate ownership.

9.6. If councillors agree that officers can proceed to the next stage of the

development of the site, then the market testing associated with the procurement of a development partner for the site will enable a more robust financial appraisal of the options. The decisions to proceed through the stages of the procurement have been delegated to the Director of Health, Housing & Adult Social Care and Director of Finance Resources & Customer Services and viability will be assessed at each stage.

9.7. The commencement of the development process (OJEU and CPO) will

trigger specific costs for the council and there is always a risk that if the scheme does not progress to development then those costs will need to be funded by the council.

9.8. Any proposals for the redevelopment of this land would need to be

considered in light of the Council’s obligation to obtain the best consideration for land in its ownership

Legal Implications

9.9 The Council has the power to carry out the regeneration project at New Avenue by virtue of the `competence power’ set out in s1.1 of the Localism Act 2011. Section 2 of the Act sets out the boundaries of the general power, requiring local authorities to act in accordance with statutory limitations or restrictions.

9.10 The Council may procure the development in accordance with the

Competitive Dialogue Procedure under the Public Contracts Regulations 2006 where it is not objectively able to define the technical means to satisfy its needs or objectives or identify in advance the legal and/or financial make-up of a project or both and the Council does not consider that the contract can be awarded under the open or restricted procedures.

9.11 The requirement for any additional goods, works or services during the

project must be procured in accordance with the Councils Constitution, in particular Contract Procedure Rules. Any resulting contracts must be in a form approved by the Assistant Director of Legal Services

9.12 All property work relating to this project must be carried out in compliance with the relevant legislation and the Council’s Property Procedure Rules.

9.13 The Council is entitled to dispose of its land in any way it thinks fit pursuant to s123 of the Local Government Act 1972. If the land is

disposed at less than the best consideration that can reasonably be obtained, the Council may require the Secretary of State’s consent to such disposal.

9.14 The Council has the power to purchase land compulsorily under s226(1) of the Town and Country Planning Act 1990 as amended.

Property Implications

See Part 2 of the report

KEY RISKS 10. 1 Rehousing tenants and obtaining vacating possession may delay delivery of

the New Avenue project. 10.2 Deterioration in the housing market will have a negative impact on the

financial viability of the project. 10.3 Current Stock condition may deteriorate further during delivery of the estate

renewal project. 10.4 A full risk register for the project will be prepared. 10.5 Further details on the key risks are set out in the part 2 report elsewhere on

this agenda. IMPACT ON COUNCIL PRIORITIES 11. Fairness for All

The New Avenue Regeneration contributes to this aim by tackling inequality and access to social housing by providing new homes, a mix of tenure and employment opportunities in the Cockfosters area.

11.1 Growth and Sustainability The New Avenue Regeneration contributes to this priority by building strong and sustainable futures for our residents. The scheme attracts investment from the private sector and empowers the voluntary and community sector.

11.2 Strong Communities The regeneration has residents at the heart of the development. Extensive resident consultation will be carried out at the start of the regeneration with a resident body established to represent the views and aspirations of people living on the estate.

12. EQUALITIES IMPACT IMPLICATIONS

An Equalities Impact Assessment has been completed and approved by the Assistant Director of Council Housing; the EQIA highlights the need for continuous resident and public consultation.

13. PERFORMANCE MANAGEMENT IMPLICATIONS

The proposal will help to meet the following aims outlined within the Council’s Business Plan:

• Build prosperous, sustainable communities - replace existing council homes on the New Avenue Regeneration scheme with good quality affordable housing in line with changing government policy and thus leading to improved housing for local people.

14. HEALTH AND SAFETY IMPLICATIONS A review of the condition of the buildings has advised that repair of these buildings would require significant investment to address potential issues affecting their structural integrity and to restore and maintain the robustness and condition of the external fabric. The construction of these buildings means they are our priority for estate renewal for both practical and financial reasons Background Papers HTA Urban l Design Report 2012