DD2435 London Business Rates Pool - Regis Road

The Mayor, the London boroughs and the City of London Corporation, with the agreement of the government, established the London Business Rates Pool for 2018-19. The Mayor’s agreement to the GLA’s participation in the pool was set out in Mayoral Decision 2217. The main financial benefit of the pool is that London retains 100 per cent of any growth in business rate income over and above the baseline set by central government.

The Mayor secured agreement with the government to commit the GLA’s share of the net additional benefit of pooling on strategic investment projects. In accordance with this agreement, the Mayor created a £112 million Strategic Investment Fund (SIF) to support strategic projects.

MD2363 approved an allocation of £90.89 million from the Strategic Investment Fund. The Industrial Intensification Delivery Strategies were awarded £1 million of funding to enable the development of modern industrial floorspace and new affordable homes, to meet the objectives of the draft London Plan.

The Industrial Intensification Delivery Strategies will provide a deliverable framework and design proposition for how sites on industrial land (designated and non-designated) can be intensified and consolidated to protect and enhance capacity, whilst allowing for release in parts to accommodate housing delivery to meet multiple objectives.

The funding has been allocated to prepare up to six delivery focused strategies for large areas of industrial land across London with capacity for up to 18,000 new homes and 144,000 square metres of industrial space. The strategies are intended to build planning confidence of partners to deliver projects through industrial intensification, in accordance with policy E7 of the draft London Plan. The strategies will help both the relevant London Boroughs and GLA implement policy to facilitate affordable housing and deliver intensified industrial capacity to serve London’s economy.

The project value was estimated based on specialist inputs, including design teams and a multi-disciplinary commercial team providing agency, delivery and planning advice.

The commercial team was appointed to advise on all six pilot areas (DD2283) with the sequential appointment of design teams for each pilot area to complete masterplans. This DD approves the appointment of 5th Studio Ltd for Regis Road at a cost that is within the budget allocated for this specialist input.

GLA officers procured this work through the GLA’s Architecture Design and Urbanism Panel 2 framework. Six bids were received, and following an evaluation exercise, 5th Studio Ltd ranked highest overall. 5th Studio Ltd will undertake the commission from January 2020 to April 2020, at a cost of £84,450.

The objectives of the Regis Road, Kentish Town, Pilot Area Industrial Intensification Delivery Strategy, as agreed by the GLA and the London Borough of Camden, are to:

- deliver the comprehensive employment-led redevelopment of Regis Road, in accordance with the aspiration of LB Camden’s draft SPD for Kentish Town;
- identify the required interventions needed to unlock development at Regis Road, and the wider SPD area;
- prepare an investment strategy to guide site assembly and acquisitions; and
- deliver high quality industrial space, and maximise delivery of affordable housing.

The design work will provide a deliverable masterplan for the currently fragmented Regis Road Growth Area that reflects the ambitions of the Kentish Town Planning Framework.

The masterplan will refine the most appropriate form of development at Regis Road, as part of a comprehensive approach considering, inter alia; mix, phasing, viability and delivery.

The outputs will help to inform the placemaking strategy for Regis Road to mould the connectivity with the Locally Significant Industrial Site (LSIS) area to the north, known as ‘Murphy’s Yard’.

The London Borough of Camden is a ‘retain’ borough which means that the Borough must retain its current industrial capacity; the Delivery Strategy and Masterplan will provide clarity on how best to achieve this.

The work may support land acquisition, land assembly and investment by the GLA, the Local Authority, landowner or investment partner of the GLA. The Delivery Strategy and Masterplan will seek to reduce planning risk and demonstrate deliverable and compliant proposals.

Under section 149 of the Equality Act 2010, as public authorities, the Mayor and the GLA are subject to a public-sector equality duty and must have ‘due regard’ to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do not. Protected characteristics under section 149 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status.

Throughout the decision-making and project design process, due regard has (and will be) had to the ‘three needs’ outlined above. The industrial sector employs hundreds of thousands of people in London; potential intensification of industrial land use will protect jobs in the industrial sector and retain a resilient economy that serves Londoners. The housing shortage in London disproportionately negatively affects people with certain protected characteristics; increasing the supply of housing and affordable housing will help to achieve positive impacts in line with the ‘three needs’.

Key risks and issues

5th Studio Ltd would enter into a contract with the GLA to complete the commission in accordance with their tender submission and agreed price.

The design brief clearly delineated the objectives and anticipated outcomes for the commission to ensure alignment and collaborative working by the supplier with the GLA, London Borough of Camden and the appointed commercial team. This will ensure that the masterplan is deliverable.

The London Borough of Camden have been part of the procurement process, two representatives scored the bids and were on the moderation panel.

Links to Mayoral strategies and priorities

Good growth, as outlined in the draft London Plan -protection of London’s industrial sector is pivotal to the success of London’s economy, in serving residents and businesses as well as creating value through production of goods. The Regis Road masterplan would meet all the key pillars of Good Growth; through making the best use of land, growing a good economy that is resilient to change. The design team will demonstrate the principles of good growth in their Masterplanning outputs.

Industrial protection and intensification –a key aspect of the draft London Plan is policy E7 that marks a significant departure from previous London Plans. The Regis Road masterplan is intended to bring forward development in accordance with draft policy E7. The design team will work in accordance with the GLA’s Practice Note on industrial intensification.

Affordable housing delivery - The Regis Road masterplan should deliver a minimum of 35% affordable housing, which reflects the policy position in the draft London Plan. Adopting a comprehensive approach would optimise quantum and quality of affordable housing delivery.

Housing delivery -The latest Strategic Housing Land Availability Assessment undertaken by the GLA shows that London has a capacity for 64,935 new homes a year, 45% of which will be in Inner London. The Regis Road project will contribute to this target.

Impact assessments and consultations

There has not been any impact assessment or consultation, beyond the procurement process.
Conflicts of Interest

The GLA’s Gifts and Hospitality Policy and Procedure has been reviewed in relation to this Director Decision and there are no conflicts of interest to declare.

This decision requests approval for revenue expenditure of £84,450 to 5th Studio Ltd to support the preparation of Industrial Intensification Delivery Strategy for Regis Road.

The above expenditure will be funded from the £1 million allocation approved by MD2363 from the Strategic Investment Fund and 75% (63,000) will be incurred in 19-20 and 25% (21,450) in 20-21.

Under section 30(1) of the Greater London Authority Act 1999 (as amended) (“GLA Act”), the GLA has the power to provide the funding for the proposed intervention providing it considers that doing so will further one or more of its principal purposes of: promoting economic development and wealth creation, social development, and the improvement of the environment in Greater London.

In exercising the power contained in section 30(1) of the GLA Act, the GLA must have regard to the matters set out in sections 30(3-5) including the impact on health, health inequalities, sustainable development and climate change and its consequences and equality under section 33 of the GLA Act and section 149 of the Equality Act 2010, which is set out above.

Transport for London (TfL) have managed the procurement process on behalf of the GLA and are responsible for drafting the contract with the successful bidder.