MD2751 Action relating to Development Agreement with ABP

1.1.    Royal Albert Dock (RAD) is an important development site within the Royal Docks, offering the opportunity for significant investment and value creation within the Royal Docks Enterprise Zone. Following a competitive bidding process started by the London Development Agency (LDA), GLA Land and Property Limited (GLAP) entered a Development Agreement (DA) with ABP (London) Investment Limited (ABP) in May 2013. The DA aims to provide a comprehensive commercial-led development, including associated residential uses, public realm and infrastructure improvements. RAD is a key development site within the Royal Docks Enterprise Zone with the potential to deliver significant business rates income and meet the area’s regeneration objectives. 

1.2.    However, GLAP is concerned because ABP is failing to deliver against its obligations under the DA. GLAP has written to ABP setting out its concerns and the actions required since December 2019.   ABP’s response has not so far given GLAP the assurance that things will improve. 

1.3.    Additional information and associated recommendations are set out in Part 2 of this paper.

1.4.    A summary of the previous decisions related to this matter are set out below:

1.5.    The total lifetime financial approval on this project is £1,235,000 as set out below:

1.6.    Part 2 of this paper sets out further budget recommendations.

2.1.    The key objective of this decision is to encourage the swift and comprehensive improvement of ABP’s performance in relation to its contractual obligations. It is intended that this in turn will support the wider regeneration outcomes for the Royal Docks Enterprise Zone area as set out in MD2338. The Royal Docks Enterprise Zone has the potential to deliver 35,000 jobs, 4,000 new homes and more than £5 billion of inward investment by 2037/38. 

2.2.    Further detail is contained in Part 2 of this paper. 
 

3.1.    Under Section 149 of the Equality Act 2010, as a public authority, the GLA must have ‘due regard’ of the need to:
•    eliminate unlawful discrimination, harassment, and victimisation; and 
•    advance equality of opportunity and foster good relations between people who have a protected characteristic and those who do not. 

3.2.    The development of RAD has the potential for significant benefits across employment, economic growth, skills development, educational initiatives and public realm improvements. By enforcing the obligations of the DA, the benefits of the scheme’s delivery will be realised, promoting new local opportunities and advancing equality of opportunity for protected groups. 

3.3.    Additional housing (including affordable housing) will also be delivered as part of the scheme. The housing shortage in London disproportionately affects people with certain protected characteristics.  Increasing the supply of housing, in particular affordable housing, will help to achieve positive impacts. Design of new homes, as well as commercial units, will be led by best practice to have due regard for areas such as designing for accessibility and inclusivity.

3.4.    The potential for any future procurement processes and development proposals will be delivered in line with GLA guidelines and statutory obligations. Any future disposal strategies and development proposals will consider impacts on protected characteristics and will be procured in line with GLA best practice in the delivery of statutory obligations. 

3.5.    This paper has considered the impacts on equality considerations and has concluded that, as the decision being taken is legal in nature there are no immediate impacts on those with protected characteristics. 
 

Key risks and issues
4.1.    Key risks and issues are set out in Part 2 of this paper.

Mayoral strategies and priorities
4.2.    The regeneration of RAD will support numerous Mayoral commitments. It will promote access to new jobs, opportunities, and skills development; it will attract new investment and economic growth, including new housing and public infrastructure including transportation; it will support local cultural activation and promote improved environmental benefits and local connectivity. This will have a direct impact on the following Mayoral strategies and priorities: 
•    the New London Plan;
•    Economic Development Strategy for London (December 2018);
•    Skills for Londoners (June 2018);
•    London Housing Strategy (May 2018);
•    Culture for All Londoners (December 2018);
•    London Environment Strategy (May 2018); and
•    Mayor’s Transport Strategy (March 2018).

Consultation and impact assessments
4.3.    Relevant internal and external stakeholders will be consulted, including local residents and the London Borough of Newham if any changes to current proposals for the regeneration of the area are put forward, having due regard to data protection, health and safety, and safeguarding where relevant.  

Conflict of interest
4.4.    There are no conflicts of interest to declare for the officers involved in the drafting or clearance of this decision form.
 

5.1.    Financial comments are set out in Part 2 of this paper.

6.1.    Ongoing legal advice on GLAP’s contractual position is being provided by the GLA Group’s shared legal service and external advisors Burges Salmon. Further legal comments are provided in Part 2 of this Decision form.

6.2.    Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a general power to do anything which he considers will further one or more of the principal purposes of the GLA as set out in section 30(2) which are:
i.    Promoting economic development and wealth creation in Greater London;
ii.    Promoting social development in Greater London; and 
iii.    Promoting the improvement of the environment in Greater London
and, in formulating the proposals in respect of which a decision is sought, officers confirm they have complied with the GLA’s related statutory duties to:
•    pay due regard to the principle that there should be equality of opportunity for all people;
•    consider how the proposals will promote the improvement of health of persons in Greater London, promote the reduction of health inequalities between persons living in Greater London, contribute towards the achievement of sustainable development in the United Kingdom and contribute towards the mitigation of or adaptation to climate change in the United Kingdom; and
•    consult with appropriate bodies.

6.3.    Sections 1 - 3 of this report indicate that the decision requested of the Mayor in this Mayoral Decision falls within GLAP’s statutory powers.
 

7.1.    The delivery approach and next steps are set out in Part 2 of this paper.