MD1650 MRF expenditure on Station Approach and District Energy Network

Type of decision: 
Mayoral decision
Code: 
MD1650
Date signed: 
30 April 2016
Decision by: 
Boris Johnson MP (past staff), Mayor of London

Executive summary

This paper addresses the remaining Mayors Regeneration Fund/ London Enterprise Fund allocations in North Tottenham. The proposal is to incorporate Station Approach and District Energy Network projects into the wider phase 2 Housing Zone funding package formally approved by the Mayor on 17 March. This approach de-risks the overall North Tottenham project, enables comprehensive regeneration, and outcomes agreed by Investment Performance Board at stage 2, to be delivered. It was approved in principle by Investment Performance Board on 19 April 2016 (MD1632). 

The Mayor approved (under cover of MD895 and MD1092) a programme of delivery through to March 2017, with investment decisions within this timeframe and subsequent to a Stage 2 investment decision being delegated to the Executive Director for Development, Enterprise and Environment. Where funding is required beyond 2016/17 changes and approvals are subject to the GLA’s decision making process. This paper seeks Mayoral approval for the following MRF expenditure to extend beyond March 2017.
 

Decision

That the Mayor approves the incorporation of:  
  
•    £3.86m currently allocated to the Station Approach project in North Tottenham funding, within the wider phase 2 Housing Zone funding package with full spend achieved by 2018/19; and

•    £2.5m currently allocated to the District Energy Network project in North Tottenham within the wider phase 2 Housing Zone funding package with full spend achieved by 2020/21. 
 

Part 1: Non-confidential facts and advice

Introduction and background

1.1    The Mayor approved (under cover of MD1092) approval for a programme of delivery through to March 2017, with investment decisions within this timeframe and subsequent to a Stage 2 investment decision being delegated to the Executive Director for Development, Enterprise and Environment. Where projects require funding beyond 2015/16 endorsement is required from Investment Performance Board (IPB) prior to the preparation of a Director’s Decision. Where funding is required beyond 2016/17 changes and approvals are subject to the GLA’s standard decision making process. 

1.2    The £28m (£18m Mayors Regeneration Fund (MRF); £10m London Enterprise Fund (LEF), package to align with large scale redevelopment in North Tottenham was approved by IPB in April 2012. This was further supplemented by match funding from the LB of Haringey (£13m). An additional £1.2m has now been secured by the LB Haringey, which brings the total programme value up to £42.2m. The funding is intended to safeguard the £650m investment associated Tottenham Hotspur Football Club (THFC) development. Regeneration in North Tottenham will deliver an estimated 4,800 new homes and 3,850 new jobs. 

1.3    Four distinct projects, targeted at supporting large scale estate redevelopment programme in the vicinity are moving forward at different rates. While there has been very good progress on two of these projects, delays to THFC’s stadium, have caused uncertainty around delivery timeframes on others projects. The revised stadium planning application was approved by LB Haringey (LBH) in December 2015 and the Mayor gave final approval in February2016. This increases certainty. However, some uncertainty remains around the timing of delivery of the THFC project.  

1.4    In December 2012 £872,000 MRF expenditure for the purchase of key sites was authorised by the Executive Director of Development, Enterprise and Environment under cover of DD938. In 2013/14 £436,447 was utilised to purchase 731 Tottenham High Road. 

1.5    In November 2015 £4.8m MRF expenditure for delivery of a renewed White Hart Lane station, improved public realm, and acquisitions was approved Executive Director of Development, Enterprise and Environment under cover of DD1391.   

1.6    The two outstanding elements of MRF funding relate to High Road West - Station Approach (3.06m) and District Energy Network (2.5m). It is not possible to allocate this funding in detail until a deliverable development proposition has been established. 

1.7    Significant progress has been made on HRW in the last six months. Cabinet approval to commence procurement of a development partner was secured in December 2015. This procurement process will begin in May 2016 and complete in Q1 of 2017/18.  In summary: 
    
-    LBH will be seeking a development partner to deliver the High Road West Scheme and will use a development agreement to manage development with its partner;

-    LBH’s partner will be committed to delivering the approved development in accordance with the development agreement obligations and in accordance with the agreed delivery programme; and 

-    the development agreement will be structured so that LBH is responsible for securing vacant possession of the site and the development partner is responsible for all infrastructure and development delivery. 

1.8    Since December 2015 development of phase 2 Tottenham Housing Zone has been progressing and was formally approved by the Mayor on the 17th of March 2016 (MD1632).  

1.9    As part of this process the strategy for spend on the remaining MRF monies has been clarified. It is proposed that the remaining £3.86m for Station Approach and the £2.5m for delivery of District Energy Network be incorporated into the wider Housing Zone funding package in addition to the existing Housing Zone funding allocation. The proposal de-risks the overall project, enables area-wide regeneration and outcomes agreed at stage 2, to be delivered. 

1.10    It is anticipated that delivery will be achieved by 2020/21. As this falls beyond the 2016/17 deadline for spend approved under cover of MD1092 IPB approval in principle was secured on 19 April 2016.
 

Objectives and expected outcomes

See signed version attached

 

 
 

 

 

 

Equality comments

3.1    All projects will be developed and delivered in compliance with relevant Codes of Practice and in line with the public sector equality duty to ensure that the following issues have been considered 

i)    Design Proposals:  All design proposals will be assessed in terms of accessibility to ensure we minimise disadvantages suffered by people who share a protected characteristic. age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, sexual orientation

ii)    Documents and publications: all documents produced will comply with Mayor of London branding guidelines, itself based on guidance from the Royal National Institute of Blind People. Where possible documents will be offered in translated and braille formats.

iii)    Events: all events will be open to all and, where possible, we will encourage people who share a protected characteristic to participate in any activity in which their participation is disproportionately low.

 

Other considerations

a)    Key Risks and Issues 
    There is a risk that Housing Zone monies are prioritised over remaining MRF monies by the Borough. In order to manage this risk it is proposed that the remaining £3.8m Station Approach and £2.5m DEN monies are embedded in the wider HZ process in addition to the current Housing Zone allocations. The outputs agreed at stage 2 will remain the same. Monitoring of spend and achievement of outputs will be managed as part of the HZ process.

    The approval by LBH and the Mayor provides increased certainty around delivery of the THFC project.  However it remains the case that progress on the THFC project is outside of the control of either LBH or the GLA and further delays may occur. Close and regular coordination is in place at the appropriate levels in LBH. Senior officers at the GLA are also fully briefed on progress. 

b)    Links to Mayoral strategies and priorities
    The proposed project is not mentioned in the strategic plan directly, as it is a response to the     unforeseen exceptional incidents of August 2011.  However, the programme overall, and the     individual projects for Tottenham closely link to the Mayor’s priority themes of: improving     Londoners’ quality of life; investing in young Londoners and supporting jobs and growth.

    The project will support the Mayor’s priority to deliver growth and jobs, including meeting the     Mayor’s 200,000 jobs target.

c)      Impact assessments and consultations
    Since the riots in 2011 LBH has started a dialogue with local residents, businesses and stakeholders to inform and shape the key elements of the overall approach to regeneration in Tottenham. In October 2013, Haringey Council commissioned an independent organisation called Soundings to conduct a thorough five-month consultation exercise called Tottenham’s Future, to gather views from the community on their views and ambitions for the next 20 years. The responses fed into and shaped the council’s Strategic Regeneration Framework (SRF) for Tottenham, which sets out how the local community’s priorities can be achieved. More than 3,700 people contributed to the consultation.

 The works outlined in this report all play a direct and significant role in tackling the key concerns identified through consultation by helping to deliver the strategies for success outlined in the SRF.  Individual projects will be developed and delivered in compliance with relevant Codes of Practice and in line with the public sector equality duty. 
 

Financial comments

5.1    This report sets out the latest position with regard to the post-riots programme for Tottenham, funded by Mayor’s Regeneration Fund (MRF), London Enterprise Fund (LEF) and LB Haringey and seeks approval to utilise £6.36m on the Station Approach and District Energy projects.

5.2    As detailed within the main body of this report, the MRF/ LEF funding package for this programme totals £28m and comprises of £18m from the Mayor’s Regeneration Fund and £10m Government Funding from the London Enterprise Fund. This is further supported by match funding from the LB of Haringey (£13m) plus a further £1.2m secured by the borough bringing the total programme value up to £42.2m.

5.3    With regards to the proposal to utilise £6.36m; £3.86m allocation in the Station Approach project and £2.5m for the District Energy Network project to be incorporated into the wider phase 2 Housing Zone funding package will be contained within the overall MRF / LEF funding package of £28m. 

5.4    As a result of the proposals in this report, the £28m MRF / LEF funding allocated to specific projects within the overall Tottenham programme, (that have secured IPB and /or full approval) will require some budget re-profiling into future years up to the 2020/21 financial-year to cater for the two projects noted above, which will be picked up as part of the Authority’s annual budget setting process.  

5.5    Given the complexities of this programme, the individual projects will be monitored closely and any project slippage reported as soon as they become apparent. Any variations to grant agreements that impact on the delivery dates and /or any specific changes to the projects (including budgetary implications) will be subject to further approval via the Authority’s decision-making process. All appropriate budget adjustments will be made.  

 

Planned delivery approach and next steps

Activity

Timeline

Incorporate MRF Monies into HZ Agreement

June 2016

Delivery Start Date HRW Acquisitions

Q1 2016

Delivery Start Date DEN

Q1 2016

Final evaluation start and finish To be agreed as part of HZ agreement process

 

Delivery End Date HRW Acquisitions

2018/19

Delivery End Date DEN

2019/20