Issue - decisions

Future Brixton: Somerleyton Road Project – Procuring a Contractor and Agreeing the Financial Model

23/07/2015 - Future Brixton: Somerleyton Road

(Report 40/15-16) (Key decision)

 

The Cabinet Member for Housing And Jobs and Growth introduced the report:

·      The Somerleyton Road project was a unique and ambitious new approach to the creation of housing and facilities of community benefit.   The original estimate showed flats for development, flexible community space, community trust, and local people building the homes they want to be in; but was now enhanced to include 301 homes, 65 extra care homes, children facilities, a community gym, retail and work spaces, and the provision of a centralised energy centre.  There was also a partnership between Igloo, Ovalhouse Theatre and Brixton Green, and a new community body to absorb additional dialogue. 

 

At this point the Leader of the Council extended the guillotine.

 

·      The report author said that the technical paper sought to authorise the continuation of the Igloo Regeneration Ltd contract to stage 2; with the creation of 5 architecturally different blocks (each designed by a different architect) creating interesting diverse streets, but all of the same quality.  The policy was tenure blind, with no differentiation; and planning submission was set for August 2015, with a further Cabinet report in March 2016 when planning permission had also been approved.  There had been growth in the scope of the project, with associated increased development costs and other building work in London, but the value generated had also increased.  It would try to deliver 59% affordable housing and they were currently looking at extra efficiencies, whilst key decisions during procurement could be delegated to Cabinet Members or to the Strategic Director, Delivery.

·      The Cabinet Member for Health and Wellbeing said with such a large amount of spend there was a need to work with small-medium enterprises (SMEs) in the supply chain to make sure money was well spent.

·      The Cabinet Member for Adult Social Care praised the good work and asked how long the regeneration would take and what would happen to the Lambeth and Southwark Community Transport (LaSCoT) currently sited there.

·      The Cabinet Member for Environment & Sustainability praised the exciting and innovative community-led scheme and the centralised energy system, but enquired as to ensuring that building contractors of the highest credentials and background are met in delivery and sustainability of the project.

·      The Deputy Leader (Finance & Investment) enquired as to the financial viability if central government proposals (1% reduction in social rent) went ahead.

·      Report authors confirmed that LaSCoT had been in discussion for some time and there were other depot locations around London with good lines and communications, so the development was not too negative on their outlook.  The previous work of Brixton Green highlighted that sustainability formed a fundamental ethic and Igloo’s ‘footprint policy’ of sustainability was also noted, whilst the centralised energy network would help ensure it hit these targets. As to the financial viability; at present there was a net value, with the main driver being affordability, and even with 1% reduction in social rent, this still retained a positive value overall.

·      The Leader of the Council recommended the report and told attendees of her enthusiasm, whilst offering thanks to key partners and officers.

 

RESOLVED:

1.   To approve the continuation of the Igloo Regeneration Ltd contract to stage 2.

2.   To approve the commencement of procurement of a build contractor.

3.   To agree that a further review of the project take place in November/December 2015 to ensure the continuing viability of the scheme prior to the final stage of the procurement process, and that this and any necessary decisions prior to the project being laid before Cabinet for final approval to proceed (in March 2016) be delegated to the Cabinet Member for Jobs and Growth in consultation with the Strategic Director for Delivery.

4.    To bring a further report to Cabinet in March 2016 for a final decision prior to entering into legal agreements and contracts for the construction of the development.