ADD2108 Former Webbs Industrial Site

Type of decision: 
Assistant Director's decision
Code: 
ADD2108
Date signed: 
24 April 2017
Decision by: 
Fiona Duncan, Head of Area (North East)

Executive summary

This Assistant Director’s Decision seeks approval of expenditure of up to £50,000 to appoint property consultants through TfL’s Framework to undertake the necessary due diligence and conduct a procurement exercise to complete a disposal of the former Webbs Industrial Site  via the London Development Panel (LDP).

 

Decision

The Head of Area (North East) approves expenditure of up to £50,000 to undertake due diligence and conduct a procurement exercise for the appointment of Development Partner through the London Development Panel.

 

Part 1: Non-confidential facts and advice

Introduction and background

1.1    The Webbs Site is a former industrial site that comprises two vacant contiguous sites at 108 Blackhorse Lane and 47 Sutherland Road in Walthamstow, and is approximately 1.67 hectares in size. GLAP is marketing the site via the London Development Panel and to this end we are carrying out extensive due diligence to ensure that all information provided to bidders is accurate. 

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 kick-start the comprehensive regeneration of the Blackhorse Lane area.

1.3    The LDP procurement exercise for the appointment of a development partner was launched on the 12th April 2017 with the intention of appointing the successful bidder by the 8th November     2017.

1.4    Provision was made in the 2017/18 Land and Property budget to fund the necessary resources to secure a development partner to deliver the Webbs scheme, and this report seeks approval to commission a Property Consultant team to carry out the necessary due diligence during the procurement process to ensure GLAP’s interests are protected and the best value is achieved for the scheme.

1.5    It is proposed that the Property Consultant team is appointed through TfL’s standard Framework process, and is expected to take 1-2 weeks from start to finish, with the commission lasting until November 2017 when the contract to develop the site will be let.

Objectives and expected outcomes

2.1    To provide advice assist in the preparation of the Invitation to tender (ITT) that ensures that we supply comprehensive information to tendering developers in order to allow them to provide rounded and deliverable proposals for consideration. 

2.2    To provide advice to the GLA so as to ensure that the developer selection process is robust, that GLA objectives are met, best value is achieved for the site and that the financial submissions are correctly assessed
 

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    Should the disposal of the site not be committed under a signed development agreement  by November 2017, the procurement process may be at risk of being abortive as the LDP will expire and no contracts should be let after that date.  

4.2    Without this commercial input, GLAP is at significant risk of not being able to discharge its duties in relation to ensuring best value/consideration is achieved and the most appropriate and deliverable scheme is selected.
 

Financial comments

5.1    This decision requests approval to spend up-to £50,000 to undertake due diligence and conduct a procurement exercise for the appointment of Development Partner through the London Development Panel (LDP). This is the second phase following an acquisition of the site approved through MD1627. The above expenditure is available from Housing & Land Blackhorse Road Acquisitions (Phase 2) budget and will be expended in 2017/18 financial year. 

 

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 successful property consultant.

Activity

Timeline

Procurement of a Property Consultant from TfL’s Framework to carry out due diligence .

April 2017/18

Delivery Start Date

May 2017/18

Evaluation Period

Q2 2017/18

Mayoral Decision to appoint successful developer

Q3 2017/18