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Royal Docks Enterprise Zone Programme Board

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Royal Docks Enterprise Zone Programme Board Royal Docks Enterprise Zone Programme Board Date of meeting: 3 March 2021 Title of report: Development Sites Update To be presented by: Paul Creed, Head of Development & Placemaking Cleared by: Rickardo Hyatt, Executive Director – Housing and Land, GLA; and Dave Hughes, Corporate Director of Inclusive Economy and Housing, LBN Classification: Public with reserved appendix (commercially sensitive information) 1 Executive Summary 1.1 This paper provides a confidential update on the Enterprise Zone development sites. 2 Recommendation 2.1 That the EZ Programme Board notes the contents of this paper and that of the reserved Part 2 paper. 3 Introduction and Background 3.1 The Enterprise Zone Delivery Plan is predominantly funded by the business rate income from three sites owned by GLA Land & Property Limited (GLAP) within the Enterprise Zone boundary: a. Silvertown Quays – being developed by The Silvertown Partnership, which is a joint venture between Lendlease and Starwood Capital; b. Royal Albert Dock – being developed by ABP; c. Albert Island – being developed by London & Regional; 3.2 The developments are at different stages. This paper updates the Programme Board on the status of the development, current issues and the Royal Docks Team’s approach in each case. 4 Issues for Consideration 4.1 Development progress continues to be strong across the Royal Docks across a number of sites. Detailed information on the three main Enterprise Zones sites is set out later in this paper. Below is a summary of the overall picture across the GLA land portfolio: Planning Development Construction Phase Site Type Permission Full completion Partner appointed. started on site. completions. secured. Silvertown 6m sqft, 3,000 YES – Enabling YES YES 2024 2030’s Quays homes. Works Royal Albert 4.5m sqft office YES YES YES YES – Phase 1 2030’s Dock scheme. 0.8m sqft industrial 2021 – March Albert Island YES 2021 2023 2024 scheme. Cttee Thameside 5,000 home mixed YES YES 2021 2023 2030’s West use scheme. Brunel Street 975 homes. YES YES YES YES – First blocks 2024 Works Millet Place 236 homes. YES YES YES YES YES Royal Albert 1,800 homes YES YES YES YES 2026 Wharf masterplan. Royal Eden 897 homes. YES YES YES YES 2024 Dock Silvertown Quays 4.2 Silvertown Quays is subject to a Master Development Agreement (MDA) with The Silvertown Partnership (TSP). In 2018, TSP underwent a change of control when Lendlease and Starwood Capital took on the project. 4.3 The project had already received an Outline Planning Permission (OPP) under the previous Mayoral administrations at both LBN and GLA. TSP secured Reserved Matters consent for Phase 1 in December 2019. This includes c950 number of homes and 500,000sq/ft of commercial brand space including in Millennium Mills. Works to commence this phase are expected to start shortly with initial landscaping works to enable utility diversions. 4.4 Work is on-going on the design and approach on the rest of the scheme, as well as the new footbridge across Royal Victoria Dock to connect the scheme to Custom House station. It is proposed that through this process, TSP and the Royal Docks Team will work to seek to update the project to reflect current planning policy. 4.5 The scheme continues to be a major priority for the Enterprise Zone as it will play a key role in regenerating the area, reconnecting the Royal Docks and providing much needed affordable housing and employment space. Royal Albert Dock 4.6 Following the completion of phase one in April 2019, ABP have struggled to complete the leasing of the buildings. Only two leases have been completed and they represent a small percentage of the available space. There have been some external factors affecting ABP’s ability to lease the space, but the current position is clearly unsatisfactory. Discussions between the Royal Docks Team and ABP are on-going. 4.7 To support the development and the regeneration of Royal Albert Dock, the Royal Docks Team has invested in the public realm and provided infrastructure to enable place-making and the activation of the site. 4.8 Works to improve the phase four area have been completed to enable Soldier of Orange to occupy the site with their new theatre. Subject to continued progress with the vaccination programme, they hope to restart their project later this year. The team are in advanced discussions with another entity about bringing a major environmental themed meanwhile use to the site subject to further funding approvals. 4.9 In addition, the Royal Docks Team has invested in improving two dock edge plots around Dockside 1000 to enable events once Government regulations allow. A further plot has been improved and will soon house the Atlantic Pacific charity who got planning approval earlier this year for their new centre. 4.10 All of these temporary and meanwhile uses will help bring more people to the area, improve the perceptions of the Royal Docks and support any potential retail tenants at RAD. Albert Island 4.11 The development partner for Albert Island, London & Regional (L&R), signed the Development Agreement in 2018. Since then, L&R have been working steadily through the detailed design of the scheme and have submitted a planning application for the site which is due to go to LB Newham’s Strategic Development Committee in March. 4.12 The scheme is relatively complex given the numerous constraints on the site and the need to deliver some key minimum requirements. L&R have worked well with the Royal Docks Team and the LB Newham planning team on a complicated but high-quality scheme. It will play an important role in reconnecting North Woolwich and Beckton by making the eastern end of the Royal Docks more accessible and legible. 4.13 The main minimum requirement is the construction of a new boatyard for London. L&R are in advanced negotiations with a prominent party to deliver the boatyard. This will bring new marine engineering skills to the Royal Docks and will support increased river activity. 5 Equality comments 5.1 This is an update paper and does not propose any specific decisions against which equality considerations are applied. 5.2 However, each of the development sites does have, by their nature, the potential to impact on those with protected characteristics. The way in which the developments are designed, promoted, occupied and used will have an impact on the nature of the community created in these three large sites. 5.3 In each case, the planning process and design review assessment deals with the physical development and the extent to which that has impact on protected characteristic groups. The business plan review process, which the Royal Docks Team undertakes with the developer also considers the general approach to marketing and communications. 5.4 The Royal Docks Team is working with each development partner to maximise the amount of affordable floorspace available – either for affordable homes or for affordable business space. 6 Risks arising / mitigation 6.1 The market for residential and commercial space is in flux as a consequence of COVID-19. Whilst the relaxation of the Government’s lockdown restrictions will occur over the next few months it will be some time before normal conditions return. This in itself creates significant challenges and commercial risk for developers contemplating construction. Some initial delay before commencing is therefore prudent and in some instances unavoidable. 6.2 Beyond the immediate impact of lockdown there is the broader economic and fiscal impact of COVID-19. The response to such an acute economic shock is difficult to forecast but there are risks in terms of the availability of capital funding, the risk appetite of investors and the extent to which markets and demand in sectors returns to what was “normal”. 6.3 All these risks are difficult to forecast and therefore to mitigate. In many instances, a period of delay seems the most appropriate. Fundamentally, however, the underlying market imbalance between supply and demand, particularly in housing, seems unlikely to markedly change. The question is more about how long the market takes to recover. 7 Financial Comments of the Executive Director Resources 7.1 There are no additional expenditure proposals in this update. However, the lack of occupancy at Royal Albert Dock is impacting on business rate income. The risk of any shortfall is being kept under review. 8 Next steps 8.1 Set out above. Appendices: Appendix A – Part 2 Briefing Note (RESERVED) .
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