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CCURV Initial Development Property Update

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CCURV Initial Development Property Update For Publication REPORT TO: CABINET 12 December 2011 AGENDA ITEM: 26 SUBJECT: CCURV Initial Development Property Update LEAD OFFICER: Stephen McDonald Executive Director, Planning and Environment CABINET MEMBER: Cllr Tim Pollard Deputy Leader and Cabinet Member for Regeneration & Economic Development and Children Families and Learners WARDS: All CORPORATE PRIORITY/POLICY CONTEXT: CCURV contributes to the following: • Regenerating the town and district centres • Increasing the supply of affordable housing • Reducing worklessness • Raising adult skills and increasing adult qualifications • Providing better cultural and leisure opportunities • Increasing the number of young people in employment, education and training FINANCIAL SUMMARY: Financial implications are set out in the Part B paper. FORWARD PLAN KEY DECISION REFERENCE NO.: not a key decision 285 The Leader of the Council has delegated to the Cabinet the power to make the decisions set out in the recommendations below. 1. RECOMMENDATIONS 1.1 To note progress of the CCURV programme for the Initial Development Properties of Taberner House, College Green and Tamworth Annex. 1.2 That the Executive Director of Planning and Environment in consultation with the Council Secretary and Solicitor, be given executive delegated authority to undertake relevant steps and conclude any agreements necessary to: • Remove Tamworth Annex from the CCURV Initial Development Properties and replace it with a substitute site at best consideration; • Investigate the bringing forward of Rees House and Morland Lodge as a substitute site for Tamworth Annex and subject to compliance with the requirements concerning land disposals under the Local Government Act 1972 , commit the site to CCURV; and • Apply a temporary freeze of the A Loan coupon payment for College Green and Barclay Road Annex to commence from the long stop dates set out in the CCURV agreements or another such date as the parties may agree with appropriate justification. 1.3 To note that the former care home sites of Brigstock Manor, Cheriton House and Stroud Green Lodge will be formally offered to CCURV subject to Section 123 of the Local Government Act 1972 best consideration test and a report to Corporate Services Committee confirming that the Council is obtaining the best consideration; and 1.4 To note that Coleby Court will also be offered to CCURV subject to the site being declared surplus to Council requirements, Section 123 of the Local Government Act 1972 best consideration test and a report to Corporate Services Committee confirming that the Council is obtaining the best consideration. 2. EXECUTIVE SUMMARY 2.1 CCURV is a 50:50 joint venture partnership between Croydon Council and John Laing; its aim is to regenerate key sites across the borough commencing with the Initial Development Properties that were committed to CCURV at Commercial Close in November 2008 through the entering into of legally binding agreements with John Laing. 2.2 This report takes the opportunity to update Members on progress in relation to the Initial Development Properties of Taberner House, College Green (incorporating Barclay Road Annex) and Tamworth Annex. It builds on 286 information set out in the CCURV Annual Report 2010 presented to Cabinet in October 2010 (A96/11 refers) setting out each project’s current status and programme for redevelopment within the context of the change in market conditions and opportunities that have arisen since commercial close. 2.3 The paper focuses specifically on: • Progress of options relating to the redevelopment of Taberner House that will commence following the completion of Bernard Weatherill House; • The re-launch of the Fair Field masterplan that will define the future parameters for the redevelopment of College Green and Barclay Road Annex; • The removal of Tamworth Annex from the CCURV Initial Development Properties and its replacement by a substitute site; • The recommendation that subject to further assessment Rees House and Morland Lodge be a substitute site for Tamworth Annex and subject to the demonstration of best value and compliance with section 123 of the Local Government Act 1972, commit the site to CCURV as a replacement Initial Development Property; • The principles around the application of a temporary freeze of the A Loan Coupon payment for College Green and Barclay Road Annex to commence and end at dates to be agreed with John Laing as set out in the report; and • The offer of the former care home sites Brigstock Manor, Cheriton House, Coleby Court and Stroud Green Lodge to CCURV in accordance with clause 13.1 of the CCURV Members Agreement whereby CCURV has the first opportunity for site acquisition subject to Section 123 of the Local Government Act 1972 best consideration test. 3. DETAIL 3.1 When CCURV was created, the Council envisaged a rolling programme of site developments over the life of the vehicle. The initial competition to appoint a development partner was based on four development sites – Fell Road, Taberner House, College Green and Tamworth Annex. Other sites would then be considered by CCURV as they became surplus to Council requirements. This report focuses on the Initial Development Properties other than Fell Road where the construction of Bernard Wetherill House is on schedule. 3.2 The CCURV Annual Report 2010 sets out the current and anticipated economic conditions impacting on the CCURV programme. It notes a decline in residential markets during 2010, stabilising in 2011 and prediction of future growth between 2013 and 2015. This is further supported by Savills anticipating a future growth in the wider Croydon market following the implementation of the Metropolitan centre masterplans. 3.3 The programmes contained in the CCURV business plans for the Initial Development Properties have been realigned in order to take account of these 287 forecasts therefore improving the realisation of benefits that the redevelopment of these sites brings. A delay in the delivery of schemes until 2013 onwards, when markets are expected to improve, is of benefit to the business plans and ensures that there is adequate time to make certain that all of the necessary permissions and approvals are in place to guarantee delivery. 3.4 Taberner House 3.4.1 CCURV is a key stakeholder within the development of the Mid-Croydon masterplan, working closely with the masterplanning team in shaping future development proposals of the area and Taberner House which falls within the context of the draft masterplan. 3.4.2 In 2010, CCURV undertook an options study for the Taberner house site that looked at the development opportunities offered by Taberner House and also to inform the Mid-Croydon masterplan team. The option study considered two options. The first was for a refurbishment of the existing building converting it to residential and the second, a demolition of Taberner House and replacement with a comprehensive redevelopment of the site. Both options investigated the opportunities and constraints set out within the draft masterplan and included deliverability, phasing and the massing impact on the surrounding areas while being sympathetic to their immediate environment of The Queen’s Gardens, Bernard Weatherill House and the Town Hall. Both options were for residential schemes delivering a range of tenure and unit sizes. 3.4.3 CCURV’s preferred option and the one that is currently in early design stages is option two, a complete redevelopment of the site. This is in line with the draft masterplan and is at early stage discussions as part of a pre-application process with the Council as Local Planning Authority (LPA). Early involvement with the LPA in the design development of the scheme will ensure that it meets planning policies and guidance. 3.4.4 It is anticipated that a planning application will be submitted in the first half of 2012 which is within the programme required in order to commence on site when the Council relocates to Bernard Weatherill House in 2013/14. 3.5 College Green & Barclay Road Annex (‘College Green’) 3.5.1 In respect of College Green, the programme for the redevelopment of the site is later than originally envisaged in the CCURV Partnership Business Plan. This can be attributed to several reasons, in part to the change in market conditions and a delay in detailed transport modelling by Transport for London for the adjacent Wellesley Road. There has however, been considerable recent progress in relation to this site. 3.5.2 Members will recall that a masterplan for the site was commissioned by CCURV and completed in draft in March 2010. The masterplanning process was put on hold to allow other projects to progress and to ensure that the masterplan integrated into the Council’s Local Development Framework programme. 3.5.3 The masterplan is now in the process of being re-launched. The new masterplan, ‘Fair Field,’ will define the scale, quantum and type of development 288 for the College Green site and is being undertaken by CCURV and the Council in partnership. A stakeholder board was convened in September 2011 to guide the completion of the masterplan and CCURV is integral to the process. 3.5.4 It is intended that the Fair Field masterplan is adopted by the Council as Interim Planning Guidance following public consultation in 2012. The masterplan will inform the production of the Croydon Opportunity Area Planning Framework currently being developed together with the Mayor of London and inform the CCURV Business Plan and proposals for the future form of the redevelopment of College Green by CCURV. 3.5.5 In terms of land assembly, the Council has repurchased the Fairfield Car Park at College Green. Under the CCURV Member’s Agreement the Council is obliged to acquire the car park for the CCURV College Green redevelopment by spring 2014 (provided CCURV has achieved ‘Readiness to Develop Criteria’ by that stage). Under the CCURV Conditional Sale and Development Agreement, CCURV will acquire the asset from the Council for the price the Council has paid for it.
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