MD3275 Beam Park Development Agreement Variation

1.1.    Beam Park is a multi-phase housing development on GLAP land, located on a 29-hectare site, sitting across the London Borough of Barking and Dagenham (LBBD), and London Borough of Havering (LBH). GLAP’s development partner, Countryside Partnerships (“Countryside”) secured a first hybrid planning consent in 2019. Phase 1 (640 homes) was completed in 2023, and Phase 2 (518 homes) is due to complete in Summer 2024.
1.2.    A new hybrid planning consent was secured by Countryside in November 2023, bringing the overall number of homes from 3,000 to 3,947 (with 50 per cent affordable housing). This consent includes a new outline consent for phases A-G (named 3-8 in the previous masterplan), and detailed consent for Phase C (formerly Phase 6). A Building Lease was subsequently granted to Countryside to commence construction on Phase C, in December 2023. 
1.3.    Following the new planning consent, a number of changes to the Development Agreement (DA) between GLAP and Countryside are now required. The majority of the changes are necessary to update definitions and provisions referring to the Planning Application, Planning Consent, and related matters. This is required in order to restate the original DA position in light of the new planning consent, and to ensure the legal form of the DA reflects delivery on the ground.
1.4.    Besides the changes to the DA form set out above, there are additional changes, which are listed below and described in more detail in the following sections of this decision form and in Part 2 of this decision.
•    Changes to key Development Milestones –The change to Milestone 1 (completion of the Beam Park Station Ticket Hall) is being amended in line with existing DA mechanisms. 
•    Updated Net Present Value (NPV) calculator and land payment schedule – this can be agreed within existing DA mechanisms, but it is reported in detail in Part 2 for completeness, as it has implications on the land payment schedule and on GLAP’s business plan.
1.5.    The historical Mayoral Decisions and other decisions that provided consent to progress through previous project stages are listed below:
•    MD1365 (July 2014) under which the Mayor approved expenditure to undertake intrusive site investigations, and carrying out development appraisals to ensure best consideration for the site was achieved
•    MD1664 (April 2016) under which the Mayor authorised the selection of Countryside Properties UK and L&Q as the preferred development partner, and approved entering the Development Agreement
•    MD2104 (April 2017) under which the Mayor approved expenditure for the appropriate monitoring and other costs associated with the construction of homes at Beam Park
•    DD2138 (June 2017) under which the Executive Director of Housing & Land approved GLAP entering into a Development Agreement with Countryside Properties UK
•    MD2277 (April 2018) under which the Mayor approved a Deed of Variation to the Development Agreement and entering into associated agreements to facilitate the delivery of the scheme
•    MD2570 (February 2020) under which the Mayor approved expenditure for legal and consultancy costs required in the ongoing management of the Development Agreement.
 

2.1.    The proposed changes to the Development Agreement are necessary to restate the original legal position, following the new planning consent achieved by Countryside in November 2023. This will make sure the contract reflects delivery on the ground, including the new phasing plan and updated NPV calculator. Specifically:
•    Change to Milestone 1: Delivery of Beam Park Station Ticket Hall – this milestone is being delayed, in line with existing DA mechanisms. There have been delays in securing a delivery route for a new station at Beam Park and the GLA is continuing to work with partners to find an agreement to incorporate the station into the existing railway network and find a way forward for this strategic project. It is therefore prudent to delay the construction of the Ticket Hall until such agreement has been reached. 
•    Updated NPV calculator – In line with existing DA mechanism, a new NPV calculator must be agreed between Countryside and GLAP each time a new development phase is drawn down. Upon the drawdown of Phase 6 (Phase C), a new NPV calculator was provided by Countryside, and further details are provided in Part 2.
 

3.1.    Under section 149 of the Equality Act 2010 (the “Equality Act”), as a public authority, 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.
3.2.    The purpose of the changes set out above is to ensure that the scheme can continue to deliver much needed housing, including affordable housing and private rented housing, both in the medium and long-term. This includes an additional 947 homes compared to the previous planning consent, including 50 per cent affordable homes. There is strong evidence that groups from minority ethnic backgrounds are more likely to rely on affordable housing and Private Rented Sector accommodation in London, compared to people that identify as White British (GLA Housing Research Note 8 – Housing and race equality in London, 2022). 
3.3.    This decision is therefore expected to have positive impacts on persons with a protected characteristic under the Equality Act.
 

4.1.    This decision outlines changes to the Development Agreement which are necessary to update the legal position to reflect actual delivery on the ground. This will ensure delivery can continue on a scheme which will comprehensively redevelop a significant brownfield site in East London and deliver much needed housing and affordable housing on GLAP land.
4.2.    The project supports a range of Mayoral policies and strategies, including Good Growth objectives, such as those outlined in the new London Plan 2021 (the Healthy Streets Approach, the London Housing Strategy, and the Transport Strategy) and is aligned with the Mayor’s Equalities Framework to consider the requirements of relevant equalities groups, the Health Inequalities Strategy, and a health in all policies approach. The residential development will be required to meet building safety standards that the Mayor has applied to GLA land. 
4.3.    As the project sits on GLA-owned land, when the GLA considers future planning applications, the Mayor will delegate authority to the Deputy Mayor, Planning, Regeneration and the Fire Service, as is the protocol in these scenarios.
4.4.    There are no conflicts of interest involved in this decision form from any of the officers who drafted and cleared it.
Risks and issues
4.5.    The main risks are summarised in the table below, with further information provided in Part 2.

5.1.    As set out in paragraph 1.4, the key points are the changes to the Development Agreement; changes to key development milestones; revised Net Present Value calculator and land payment schedule. 
5.2.    Aside the NPV schedule commented on separately in Part 2, the financial effect of the first two proposed changes are not of great impact on GLAP.
 

6.1.    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:
•    promoting economic development and wealth creation in Greater London
•    promoting social development in Greater London
•    promoting the improvement of the environment in Greater London.
6.2.    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 an equality of opportunity for all people
•    consider how the proposals will promote the improvement of the 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
•    consult with appropriate bodies.
6.3.    Sections 1 to 3 of Part 1 of this report indicate that the Mayor has the power to proceed to make the decisions as requested within this Decision.