DD2138 Beam Park - Entering into the Development Agreement

Type of decision: 
Director's decision
Code: 
DD2138
Date signed: 
23 June 2017
Decision by: 
David Lunts, Executive Director Housing and Land and Interim CEO of OPDC

Executive summary

Beam Park is a major housing development site which straddles the boundary of LB Havering and LB Barking & Dagenham. Following a procurement process using the London Development Panel, Countryside Properties (CPUK) were selected as preferred developer with L&Q. This DD seeks consent to enter into the Development Agreement and associated legal documents and for amendments to the structure of the transaction since the previous approval.

Decision

That the Executive Director of Housing and Land approves:

1.    GLAP entering into a Development Agreement (and other associated legal documents) with Countryside Properties (UK) Limited.
2.    Non-material amendments to the structure of the transaction since the last approval.

Part 1: Non-confidential facts and advice

Introduction and background

GLAP has undertaken a competitive procurement process using the London Development Panel (LDP) to appoint a development partner for the Mayor’s 29ha Beam Park site, a brownfield site located in London Riverside.

Prior to this consultants were appointed to undertake due diligence, prepare a viability appraisal and identify the appropriate procurement route in June 2014. GLAP has expended fees on legal and commercial advice which would have been required in the course of any form of disposal under MD1365. MD1664 provided consent in April 2016 for CPUK to be appointed and a Development Agreement entered into. Part 2 of this paper sets out the specific terms agreed with CPUK.

The development of a new station at Beam Park is integral to the success of the new community and to ensure that PTAL levels are increased to allow the maximum number of homes to be delivered at the site. 
 

Objectives and expected outcomes

The Development Agreement with CPUK sets out a build period of 13 years (to 2030) on a complex and constrained site. During the construction process the historic contamination of the site will be dealt with and a new community of over 2,800 homes created. CPUK will work with L&Q to complete 35% affordable housing on the site (included within the 2,800) and this will be spread across each of the phases - the tenure split will reflect the respective requirements of LB Havering and LB Barking & Dagenham.

Equality comments

The public sector equality duty requires the identification and evaluation of the likely potential impacts, both positive and negative, of the decision on those with protected characteristics (age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, sexual orientation). There has been previous consideration of this development and its impacts and this will be further considered via the planning process. 

Other considerations

N/A

Financial comments

MD 1664 approved Countryside Properties as preferred development partner to develop the land at the Beam Park site.   The paper is seeking additional approval for amendments to MD 1664. The amendments will not result in additional expenditure to that approved in MD1664.   
        
 

Planned delivery approach and next steps

Activity

Timeline

Sign Development Agreement

May 2017

Start on site (Enabling Works)

Late 2017

Start on site (Phase One)

Mid 2018


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