DD2674 Hayes Town Centre

1.    Introduction and background

1.1.    The Good Growth Fund (GGF) is an overarching regeneration programme approved under MD2163. It provides funding, expert regeneration advice, design support and knowledge sharing opportunities to a broad range of public, private, and third-sector organisations to support their projects to deliver against three strategic themes: Empowering People, Making Better Paces and Growing Prosperity.
1.2.    In 2018, DD2302 approved the GGF Round 2 funding allocations, as part of which £1,200,000 was awarded to The Really Local Group, Hayes (RLGH) a subsidiary of a private limited company delivering several high street and cultural infrastructure projects across London. Total project value including match was £4.74m. The project set out to create a cinema and community venue, underpinned by a process of community engagement. The Gramophone project is located within a mixed-use development scheme called the Old Vinyl Factory. 
1.3.    Significant match funding issues were first reported to the GLA in October 2021 when a key funder withdrew their match. In line with the London Funders agreement, GGF projects were granted a grace period in securing match and developing a revised delivery strategy. Despite allowing for an extended period to resolve the delivery and match issues, RLG have been unable to do so.
1.4.    Through partnership working between LB Hillingdon, U+I/Land Securities (the overall developer) and GLA, a revised proposal was explored led by developer U+I/ Land Securities, however due to issues around viability the project will not be going ahead.
1.5.    In August 2023, The GLA met with RLGH to discuss the project. RLGH accept that the project cannot go ahead but are pursuing a lighter touch meanwhile use option, which would not be eligible for GLA grant. 
1.6.    £159,443.33 of GGF grant had been drawn down for the acquisition of the lease of the site (£107,500) and professional fees (£51,943.33) before the issues surfaced with RLGH. Whilst the project is not going ahead within the timescales of the GGF programme, LB Hillingdon continues to work with the developer U+I /Land Securities to develop a community use project on this site. GLA will continue to liaise with officers in LB Hillingdon on the project. 
1.7.    £1,040,556.67 grant balance remains. It is proposed that a proportion (£450,000) will be allocated to a new programme of community capacity building and high street activation in Hayes town centre to fulfil the community objectives in the original Gramophone project. The remainder will be redistributed to other existing GGF projects that are experiencing budget issues due to the impact of inflation or where additional outputs could be achieved. The redistribution to existing projects can be approved through delegated authority without an additional Director Decision, but this paper seeks formal approval to the allocation to the proposed new programme in Hayes Town Centre.
1.8.    The arrival of the Elizabeth Line has seen significant developer interest in Hayes town centre. Making sure that growth in the town centre is equitable and benefits existing residents as well as new communities in Hayes town centre is a key priority for the Council.
1.9.    The Council has secured funding from TfL’s Major Scheme Fund and developer contributions to implement a series of infrastructure improvements around the station, including new paving, street lighting and opening out Station Road.
1.10.    The proposed reallocation of £450,000 GGF funds will support the delivery of these and of further improvements, with a specific focus on connectivity and community assets. 
1.11.    Improving the welcome and arrival into Hayes town centre, will unlock and better connect communities across the town centre. It will also provide opportunity for local people to inform the design and curate key public spaces for community use, supporting the overarching objective of instilling pride in place.
 

2.1.    The recommendations in this paper aim to fulfil the original ambitions of the Gramophone project, which focuses on improving the immediate context around Hayes town centre and delivering the community aspects of the scheme. It is also anticipated that the funding from this project will act as a pilot for how LB Hillingdon and developers can co-create projects with local people. 
2.2.    The table below sets out the original outputs for The Gramophone and how the Hayes town centre programme will support them (drawing upon LB Hillingdon studies):
 

2.5    Expected outputs and outcomes will be set out in the Grant Agreement along with baseline and monitoring and evaluation requirements. We will also continue to propose improvements that will offer similar outputs to the Gramophone project, specifically footfall, amount of public realm improved and increase in visitor satisfaction.

2.6    The remaining allocation of £590,556.67 will be redeployed to other GGF projects using existing approvals. This will shore up project delivery and ensure that programme outputs are secured. These reallocations are included here for the sake of completeness. The projects to be supported are: 

•    Studio 3 Arts – Barking
•    Market Garden City – Waltham Forest
•    Erith Regeneration phase 2: Riverside Gardens – Erith
•    Hackney Community Bath House – Hackney
 

3.1.    Under section 149 of the Equality Act 2010 (the “Equality Act”), as public authority, the Mayor and the GLA must have due regard to the need to eliminate unlawful discrimination, harassment and victimisation, and to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not. Protected characteristics under the Equality Act comprise age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status (the duty in respect of this last characteristic is to eliminate unlawful discrimination only).
3.2.    Through the GGF programme and the selection and development of project proposals, the GLA requires applicants to evaluate the potential impacts regarding protected characteristic groups. Any project must minimise disadvantages to all protected characteristic groups within society. Recommended successful projects demonstrated the positive impact GLA investment would have in addressing disadvantages for groups with protected characteristics, as well as other disadvantaged groups. Across the GGF programme projects will undertake a wide range of activities to tackle disadvantage including targeted job creation, employability support and training, health and wellbeing support, cultural activities, and civic participation programmes. 
3.3.    Applicants were asked to outline the impact their projects will have on the proposed beneficiaries and promote social integration. Applicants were asked to set out how they propose to actively address disadvantages suffered by people due to their protected characteristics and take steps to meet the needs of people from protected group where these are different from the needs of other people. These responses will be further developed with officers in the Regeneration and Economic Development Unit and then captured in individual grant agreements as part of an agreed Equalities, Diversity and Inclusion approach for each individual project.
3.4.    Applicants were also asked to demonstrate how they would encourage people from protected groups to participate in their projects and how project activities would be designed to accommodate and reflect the needs of the existing community and those that will live, work and visit an area. This includes the design for those with physical disabilities and mental health problems and older persons. As a condition of funding agreements, projects awarded funding will be required to meet the Public Sector Equality Duty and demonstrate this through regular reporting of progress.
3.5.    This decision is not expected to have any negative impact on persons with a protected characteristic under the Equality Act.

Key risks and issues
4.1    The key risks related to this decision are as follows: 
•    Programme delivery – The issues with the Gramophone project have increased the risks with regards to forecast spend within the Good Growth Fund programme. The reallocation of these funds will increase the likelihood of spend being delivered successfully and will have a limited impact on programme timeline and outputs. However, to provide LB Hillingdon with sufficient time to develop the proposal, it is expected that funding will be drawn down in 2024-25. 
•    Project termination – Following the failure of the Gramophone projects, it is important that the project history does not repeat. To mitigate this risk, the GLA will maintain supportive relationships with borough leads and other local partners and agree manageable timelines and a rigorous process for delivery. 
Links to Mayoral strategies and priorities
4.2     The investment will continue to support the priorities set out in the Mayor’s Good Growth Fund. Improvements will enhance the look and feel of Hayes town centre, through high quality public realm and providing better access from the station to the high street for new and existing communities. This is in line with the Mayor’s High Streets for All mission, which sets out to deliver enhanced public spaces and exciting new uses for underused high street spaces and buildings.  Underpinning the project is a process of community engagement which will seek to engage with the diverse communities that exist in the area and provide a precedent for how to meaningfully co-design with local people.
     Impact assessments and consultations
4.3    The GGF prospectus was developed following consultation with the LEAP Board, and the assessment process drew on input from specialist teams across the GLA. Input from other teams (beyond the Regeneration Unit) ensures alignment with Mayoral priorities across policy areas and adds to the understanding of specific sectors. 
    Data protection
4.4     Data will be gathered and stored in line with GDPR regulations. A Data Protection Impact Assessment will be completed prior to the fund being launched. 
    Conflicts of interest
4.5    There are no conflicts of interest to declare from any of those involved in the drafting or clearance of this Decision Form. 
 

5.1.    Approval is requested for the reallocation of £450,000 of Good Growth Funds to LB Hillingdon for projects in Hayes town centre. These funds were previously allocated to the Gramophone project.
5.2.    The phasing of the expenditure is still to be confirmed however it is expected that most of the expenditure will take place in 2024-25 financial year.  
5.3.    This expenditure will be funded from the ringfenced Good Growth Fund Capital budget within the Planning and Regeneration unit. 
5.4.    All relevant budget adjustments will be made.

6.1.    The foregoing sections of this report indicate that the decisions requested of the Executive Director in accordance with his/her delegated authority concern the exercise of the Authority’s general powers; falling within the Authority’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation and social development in Greater London; and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’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, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
•    consult with appropriate bodies.       

6.2.    In taking the decisions requested, the Executive Director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic ( age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Executive Director should have particular regard to section 3 (above) of this report.  

6.3.    Section 1 above indicates that the GLA intends to provide grant funding.  Officers must ensure that the funding be distributed fairly, transparently, in accordance with the GLA’s equalities duty and with the requirements of section 12 of the Authority’s Contracts and Funding Code.

6.4.    Furthermore, officers must ensure, before any (a) commitment to fund is made; and (b) funding is paid to the recipient, that: 

•    an appropriate funding agreement be put in place between and executed by the GLA and the recipient
•    the funding agreement includes a GLA right to terminate at any point for convenience (at no cost to the GLA) and is managed in such a manner
•    any deliverables, milestones and/or output requirements are structured so as to mitigate risks of the GLA incurring abortive expenditure (which might be reasonably be taken to fetter, practically, the exercise of such discretion).
 

7.1.    The indicative timeline for the Hayes & Harlington Town centre proposal is set out below.