Decision details
Authority to enter into an Indemnity Agreement and related Escrow Agreement relating to the use of Compulsory Purchase Order powers on the Abbey Manufacturing Estate, Mount Pleasant, Alperton (Recordable Officer Deciision)
Decision Maker: Strategic Director - Regeneration and Environment
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
Purpose:
In line with Cabinet March 2020 resolutions regarding the Alperton Housing Zone and potential use of the Council’s Compulsory Purchase Order powers on the Abbey Manufacturing Estate, this report seeks delegated authority from the Strategic Director, Regeneration & Environment, in consultation with the Lead Member for Regeneration & Planning, to enter into an Indemnity Agreement with Alperton Limited & Alperton Projects 2 Limited (“the Developer”), to indemnify the Council for all costs incurred relating to the compulsory purchase process of units on the Abbey Manufacturing Estate and to enter into a related Escrow Agreement with the Developer and Zedra Trust Company (UK) Limited.
Decision:
That the Strategic Director Regeneration & Environment, in consultation with the Cabinet Member Regeneration & Planning and Deputy Leader & Cabinet Member for Finance, Resources & Reform:
i) Notes the ongoing private treaty negotiations between the Developer and owners of the outstanding land interests.
ii) Pursuant to the decision of the March 2020 Cabinet, approves the terms of, and gives approval to enter into, the Indemnity Agreement with Alperton Limited & Alperton Projects 2 Limited, and related Escrow Agreement with Alperton Limited, Alperton Projects 2 Limited and Zedra Trust Company (UK) Limited, in respect of the use of Compulsory Purchase Order powers on the Abbey Manufacturing Estate, Mount Pleasant, Alperton.
iii) Notes the Operational Director Regeneration, Growth & Employment approval to directly award a contract to Gateley Hamer for the provision of surveyor services to assist the Council with the potential use of its Compulsory Purchase Order powers, on the Abbey Manufacturing Estate within the Alperton Housing Zone.
Reasons for the decision:
The Council secured GLA Housing Zone designation for Alperton in 2015. Since then, the Council has been working with landowners and developers to enable and accelerate the regeneration of the area, delivering new homes, including affordable homes, new workspace and supporting infrastructure.
In July 2015, Cabinet approved in principle to make Compulsory Purchase Orders (CPOs) of land interests within the Housing Zones under Planning, Housing and Highways legislation to help bring forward development objectives. A further report seeking approval to commence preliminary stages of a CPO specifically on behalf of the Developer on the Abbey Manufacturing Estate was approved by Cabinet in March 2020.
The Council and the Developer have negotiated the terms of the Indemnity Agreement (IA), to ensure all the Council’s costs in assisting the Developer with the CPO would be recouped. Linked to the IA is an Escrow Agreement. The Developer has continued private treaty negotiations with landowners of the outstanding land interests and as at the date hereof, agreement has yet been reached with all landowners other than seven leaseholders.
The Operational Director Regeneration Growth & Employment has given approval to directly award a contract to Gateley Hamer for the provision of surveyor services to assist the Council with the potential use of its Compulsory Purchase Order powers.
Alternative options considered:
As the decision to enter into the Indemnity Agreement with Alperton Limited & Alperton Projects 2 Limited in respect of the use of Compulsory Purchase Order powers on the Abbey Manufacturing Estate, Mount Pleasant, Alperton was made by Cabinet in March 2020, the alternatives being considered relate to the wording of the indemnity. Following full discussions with the Developer, it has been determined to enter into the IA and related Escrow Agreement on the terms set out.
Interests and Nature of Interests Declared:
None.
Wards Affected: Alperton;
Cabinet/Committee Decision or Scheme of Delegation: Delegated authority
Parties Consulted: The Lead Member for Regeneration & Environment and the Deputy Leader & Cabinet Member for Finance, Resources & Reform have been consulted.
Contact: Jonathan Kay, Head of Regeneration, Communities and Regeneration Email: jonathan.kay@brent.gov.uk Tel: 020 8937 2348.
Publication date: 16/08/2022
Date of decision: 05/08/2022