ADD368 Cane Hill – Grant payment to TfL

Type of decision: 
Assistant Director's decision
Code: 
ADD368
Date signed: 
08 December 2015
Decision by: 
Simon Powell, Assistant Director of Strategic Projects and Property

Executive summary

This paper seeks approval for the payment of capital grant to Transport for London (TfL).  The payment is being made in acknowledgement of the costs incurred by TfL in respect of historical infrastructure works at the Cane Hill site. 

Decision

That the Assistant Director approves the GLA paying Transport for London capital grant of £26,000 pursuant to Section 120 of the Greater London Authority Act 1999.

Part 1: Non-confidential facts and advice

Introduction and background

1.1.    The 83 hectare Cane Hill site, previously occupied by a hospital complex (12.5ha) and surrounded by 70ha of agricultural land was acquired by English Partnerships (‘EP’) from the Department of Health (DoH) in 2005 as part of the Hospital Sites Programme. The site was transferred to GLA Land and Property Limited (‘GLAP’) from the HCA (as EP’s successor) as part of the devolution of power to the Mayor under the Localism Act 2011.  The site is currently being developed following entry into a Build Lease between GLAP, BDW Trading Ltd and Barratt Developments Plc in June 2015.

1.2.    Whilst the site was in the ownership of DoH, DoH agreed with Transport for London (TfL) that it would transfer to TfL such part of the site as was required for the A23, infrastructure related to the highway and land forming part of a compensation arrangement with a displaced agricultural tenant for nominal consideration on condition that TfL carried out works to accommodate the development of the wider Cane Hill site.  TfL subsequently procured works for the construction of a new fence, drainage and the start of an accessway to the site.  These works were completed to the satisfaction of DoH’s agents at a cost to TfL in excess of £200,000.

1.3.    Following discussions with TfL on a variety of matters related to the Cane Hill site, it has been agreed, subject to this approval, that the GLA shall make a payment by way of capital grant pursuant to Section 120 of the GLA Act 1999 in acknowledgement of the costs incurred by TfL in respect of historical infrastructure works at the Cane Hill site.  The payment to TfL will not, however, be made subject to any conditions or limitations as to the capital expenditure to which it may be applied by TfL towards meeting.

 

Objectives and expected outcomes

2.1    It is proposed that a grant of £26,000 be paid to TfL under s120 of the Greater London Authority Act 1999 in acknowledgement of the cost incurred by TfL in respect of historical infrastructure works at the Cane Hill site.

Equality comments

3.1    The needs of those with protected characteristics, who are most likely to be in housing need, will be helped through this Cane Hill scheme. The scheme is expected to produce 675 homes including 163 affordable homes which contain a large number of three and four bed family homes, including 16 homes suitable for wheelchair users, which will have a positive impact on people with disabilities.

Other considerations

Links to Mayoral strategies and priorities 

4.1    The payment of grant is in acknowledgement of the costs of the works carried out by TfL, to accommodate the development of the wider Cane Hill site, which is providing a substantial number of homes in line with the mayoral commitments around housing and economic regeneration.

Financial comments

5.    Financial comments

5.1    The proposed grant of £26,000 will be funded from the Estates Management budget in Housing & Land.

6.    Legal comments

6.1    Section 120 of the Greater London Authority Act 1999 enables the GLA to pay grants towards meeting capital expenditure incurred or to be incurred by a functional body, including Transport for London, for the purposes of, or in connection with, the discharge of the functions of that body. A grant under section 120 must not be made subject to any limitation in respect of the capital expenditure which it may be applied towards meeting.  The proposed grant payment of £26,000 to TfL as described in this paper will not be made subject to any such limitation and would therefore be available to be used by TfL towards meeting any expenditure incurred or to be incurred by TfL in connection with its functions.  The foregoing sections of this paper therefore indicate that the GLA has the power to make the proposed grant.

Planned delivery approach and next steps

Activity

Timeline

Payment of Section 120 grant to TfL

Middle of December 2015