Convoys Wharf, Deptford in the London Borough of Lewisham
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planning report D&P/0051c/12 26 February 2015 Convoys Wharf, Deptford in the London Borough of Lewisham planning application no. DC/13/83358 Planning consent Town & Country Planning Act 1990 (as amended); Greater London Authority Acts 1999 and 2007; Town & Country Planning (Mayor of London) Order 2008. Strategic issue Whilst the Mayor has delegated authority to GLA officers to negotiate and execute the section 106 legal agreement, GLA officers seek endorsement of the proposed drafting of the section 106 agreement in terms of provisions related to community projects. In particular, GLA officers seek the Mayor’s confirmation that the obligations proposed to be secured in respect of the Sayes Court Garden Project and The Lenox Project accord with the provisions that the Mayor sought to secure when he decided to approve the Convoys Wharf outline application on 31 March 2014. Recommendation That the Mayor agrees that the drafting of the section 106 agreement accords with the provisions that the Mayor sought to secure when making his decision to approve the Convoys Wharf outline application at the Representation Hearing on 31 March 2014. Context 1 On 31 March 2014 the Mayor of London, acting as local planning authority, resolved to grant conditional planning permission in respect of Lewisham planning application DC/13/83358 subject to the prior completion of a section 106 legal agreement. As part of his decision to approve the scheme the Mayor sought to secure a number of additional section 106 provisions for the Sayes Court Garden Project and The Lenox Project. A full transcript from the Convoys Wharf Representation Hearing of 31 March 2014 is available on the GLA website, however, a summary of the Mayor’s conclusions given at the Representation Hearing for these community projects is set out below. Sayes Court Garden Project 2 GLA officers should work with Lewisham Council and the applicant to seek to use open space at Sayes Court Park, and at the Convoys Wharf site in general, in order to secure a viable and deliverable project. The Lenox Project 3 The feasibility study should be concluded as soon as possible to produce clear options for the project, and the applicant should contribute towards whichever option is the most feasible. page 1 Drafting, engagement and negotiation of the section 106 agreement 4 Following the Representation Hearing GLA officers have been working with the other section 106 parties (Hutchison Whampoa, Lewisham Council and Transport for London) in order to draft, negotiate and finalise a section 106 legal agreement - based on the heads of terms agreed in principle between the parities prior to the hearing (and set out within the GLA Representation Hearing report and addendum), and the conclusions that the Mayor made at the hearing related to the Sayes Court Garden Project and The Lenox Project (as discussed in paragraphs 2 and 3 above). 5 Throughout this process GLA officers have also sought to engage with Sayes Court Garden CIC and The Lenox Project CIC in respect of the matters of interest to these groups. This included numerous informal communications and meetings with these groups with regard to their respective projects, as well as two more formal meetings with each group (and also attended by Lewisham Council and the owner) between July and August 2014, where relevant material (including draft section 106 clauses) was provided for the community groups to review in advance. GLA officers also provided both community groups with the opportunity to make any final comments on the draft obligation in November 2014, following a request from The Lenox Project CIC to review the latest drafting. The table below sets out some details concerning the principal points of engagement with both community project groups, albeit, as explained, there were numerous other exchanges of correspondence and discussions over and above these more formal stages in the process. Community project Nature of engagement Date Open space design discussion meeting 8 May 2014 Sayes Court Garden S.106 drafting - meeting (round 1) 25 Jul 2014 Project S.106 drafting - meeting (round 2) 13 Aug 2014 Opportunity for final written comments on drafting 14 Nov 2014 Feasibility study scoping meeting 13 May 2014 S.106 drafting - meeting (round 1) 23 Jul 2014 The Lenox Project S.106 drafting - meeting (round 2) 18 Aug 2014 Opportunity for final written comments on drafting 14 Nov 2014 Table 1: Key points of GLA officer engagement with community project groups. 6 Whilst both community project groups generally acknowledge that significant progress has been made through GLA-led negotiations on the drafting of the section 106 agreement, following the receipt of final written comments from both community groups in November 2014 it was evident that both Sayes Court Garden CIC and The Lenox Project CIC were of the view that a number issues remained outstanding. A summary of the areas of concern for both community projects is provided below. The detail of the associated issues, and the GLA officer response in each case, is set out within appendix one to this report. For the avoidance of doubt, the comments received from (and on behalf of) these groups in this regard have also been made available to the Mayor in their original form. Sayes Court Garden CIC – summary of areas of concern 7 Sayes Court Garden CIC identified concerns with respect to: section 106 agreement definitions (“John Evelyn Centre Open Space” and “John Evelyn Centre Site”); Sayes Court Project Lease Terms (permitted hours of use); John Evelyn Centre Open Space Plan (terms on plan 5); and, other general matters (commitment to regular engagement with the owner and landscaping design, construction and maintenance costs). page 2 The Lenox Project CIC – summary of areas of concern 8 The Lenox Project CIC identified concerns with respect to: section 106 agreement definitions (“The Lenox Project”); Lenox Project Lease Terms (relationship to/consistency with Lenox Project Feasibility Study scenarios, opportunity for variations to be agreed, lease term period, land area and provision for a permanent berth); Lenox Project Feasibility Study (scope of study in terms of sites for assessment); and other general matters (facilitating The Lenox Project, securing accommodation for The Lenox Project; enabling an early start for The Lenox Project and responding to the views of The Lenox Project and Lewisham Council). 9 Since November 2014, GLA officers have worked with the other section 106 parties to conclude all outstanding points of negotiation (having regard to the written comments received from the community groups), in order to finalise the drafting of the agreement. As a result of this process, the obligations within the fourth schedule of the draft section 106 agreement with respect to community projects have now been agreed between the parties to the proposed deed and are considered by GLA officers to be reasonable and appropriate. 10 Whilst the draft section 106 agreement is appended to this report in full for the Mayor’s detailed reference, GLA officers set out a summary of the principal provisions for both community projects below. Summary of draft provisions for the Sayes Court Garden Project Submission of a business plan 11 In order to trigger the process for entering into a lease with the owner for the John Evelyn Centre site and associated open space (refer below), Sayes Court Garden CIC would be required to submit a business plan for approval. Such approval would need to be given by the owner and Lewisham Council (or in the event of a disagreement between these parties, the matter would be referred to a specialist for independent determination), having regard to a defined test. The test for approval is that the business plan must be “Financially Sustainable, Robust and Tenable”. This term is clearly defined within the draft section 106 agreement, and, having regard to this definition and the availability of enabling funds (refer below), GLA officers are satisfied that the rigour of the test is appropriate in terms of reasonably protecting the commercial interests of the owner, whilst avoiding any potentially onerous requirements on the community project. Securing a lease for the John Evelyn Centre Site and John Evelyn Centre Open Space 12 Where a business plan for the Sayes Court Garden Project is approved under the process discussed above, a twelve month period would commence where the owner must use reasonable endeavours to enter into a John Evelyn Centre Lease (comprising a site for the project within the block at masterplan plot 16, and adjacent open space for the horticultural programme). 13 A draft John Evelyn Centre Lease (subject to such variations as may be agreed between the parties to the lease) is included as an annex to the fourth schedule of the draft section 106. Related to this are two plans, one identifying parameters within which the John Evelyn Centre Site would be located (at plot 16), and another identifying areas of land in the vicinity of the John Evelyn Centre Site where (subject to further detailed designing at reserved matters stage) one hectare of John Evelyn Centre Open Space would be made available to the project. In summary, key lease terms include: a minimum lease term of 15 years, but up to a 20 year term may be agreed where required to secure funding; peppercorn rent for 15 years (any term beyond this to be at market rent for a cultural use); and, tenant to be responsible for repair and maintenance of the John Evelyn Centre Site and John Evelyn Centre Open Space subject to a capped recharging page 3 arrangement for costs associated with the provision and maintenance of landscaping in publically accessible areas (refer to the enabling funds section below). 14 With respect to the John Evelyn Centre Site plan, and having regard to representations made by Sayes Court Garden CIC during the engagement process, GLA officers have sought to ensure that parameters for the John Evelyn Centre Site at plot 16 would be optimised in order to allow for: a minimum premises of not less than 1,500 sq.m.