ADD2033 Various Sites in the LB of Waltham Forest

Type of decision: 
Assistant Director's decision
Code: 
ADD2033
Date signed: 
29 September 2016
Decision by: 
Jamie Ratcliff, Assistant Director of Policy, Programme and Services

Executive summary

This Assistant Director’s Decision seeks approval of expenditure of up to £35,000 to appoint property advisors through TfL’s Framework to undertake a Red Book valuation of various sites in the Waltham Forest Housing Zone.

 

Decision

The Assistant Director approves expenditure of up to £35,000 to undertake valuation work for the potential acquisition of a series of sites within the Waltham Forest Housing Zone.

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1    This request relates to appointing a RICS registered valuer to undertake a valuation to support   the potential acquisition of a number of sites in the vicinity of the Webbs site. The London Borough of Waltham Forest was awarded Housing Zone status in March 2015 for the Blackhorse Road area. As part of the proposal, sites were identified in the Housing Zone to bring forward a residential led mixed used development.

1.2        On the 17th March 2016, the Mayor approved (MD 1627), the proposal to acquire the former      Webbs Industrial site     within the Waltham Forest Housing Zone for redevelopment via the London     Development     Panel for mixed use residential scheme. The site was acquired by GLAP in July     2016 and will help kickstart the comprehensive regeneration of the Blackhorse Lane area.

1.3        The acquisition of a further number of sites in the vicinity of the Webbs site would assist in securing this residential led redevelopment opportunity and in conjunction with the Webbs site, help to transform and regenerate the wider area and deliver new homes, new employment and an improvement in the quality of life for residents.

1.4        Officers are seeking permission to commission a valuation of sites in the Blackhorse Lane area.     Once the valuation is received; furter approval will be sought from the  Mayor as to whether or     not acquire these sites.        

1.5    In October 2015 both Housing Investment Group (HIG) and Investment Panel Board (IPB) endorsed the principle to acquire the sites in Waltham Forest for procurement via the LDP at a later date. This included proposals to enter into discussions on adjacent sites, and to seek a negotiated value for purchase, subject to further approval via HIG and IPB in line with the scheme of delegation. 
 

Objectives and expected outcomes

2.1    The valuation of the sites will assist in any decision making for acquisition and their release to the LDP for the development of new homes; employment and retail spaces will deliver much needed additional new and affordable homes in the area in conjunction with a neighbouring site to complete a comprehensive redevelopment of the area.    

 

Equality comments

3.1    The delivery of this development is aimed at implementing the Mayor’s policies set out in the     Mayor’s London Housing Strategy. In January 2014 the GLA published an integrated impact     assessment (“IIA”), including an equalities impact assessment, of that strategy. The policies related    to increasing housing supply, of which this paper relates, were covered by the Integrated Impact     Assessment (IIA) for the Further Alterations to the London Plan. 

3.2    The IIA concluded that updating housing projections and targets would support the delivery of sufficient housing and may help stabilise housing prices, supporting equal opportunities throughout communities. Furthermore, the provision of housing, including maximising the delivery of affordable housing would be in line with other policies of the Plan (e.g. Policy 3.5), ensuring that the needs of different groups are taken into account in the housing design.

3.3    The delivery of new and additional homes within the Housing Zones will help to implement Objectives 1, 2, 3 and 4 of the Mayor’s Equalities Framework “Equal Life Chances for All” (June 2014) through the creation of new affordable homes, housing products and well-designed housing schemes.
 

Other considerations

4.1    As with any land purchase, there is the risk that land value may go down as well as up. Efforts would be taken to dispose of the site speedily and efficiently to minimise any exposure to that risk, and when disposal takes place all efforts will be made to ensure that at least the full value of expenditure by GLAP (including holding and ancillary costs) is recouped. The undertaking of this valuation will assist in minimising the risks to GLAP in disposing of the site(s) once acquired.   

4.2    Should negotiations for the future land purchase stall or the landowner prove to be a reluctant seller, the GLA will consider its decision, whether by seeking alternative routes for acquiring the sites or by taking forward Webbs only. 
 

Financial comments

5.1    This decision seeks approval to expend up-to £35,000 to appoint property advisors to undertake a Red Book valuation of various sites in the Waltham Forest Housing Zone.

5.2    This expenditure is available from the Housing & Land Housing Zones Revenue Budget and will be expended in 2016/17 financial year.  Any changes to this proposal, including the requirement of additional funds, will be subject to further approval via the Authority’s decision making process.
 

Planned delivery approach and next steps

7.1       The next steps following approval of this decision are summarised below. The timescales are based on estimates and are subject to negotiation with the vendor of the sites.

 

Activity

Timeline

Procurement of an agent from TfL’s Framework to carry out a Red Book valuation of the site.

Q2 2016/17

Delivery Start Date

Q2 2016/17

Redbook valuation of site

Q2 2016/17

Mayoral decision on whether to acquire further sites

Q3 2016/17