Issue - meetings

This report follows on from the two previous reports (see Background Papers) presented to the Executive on the subject lands Unisys and Bridge Park Community Leisure Centre (BPCLC) as per the site plans at appendices 1 & 2.  This report provides an update for Members and seeks agreement to enter into Heads of Terms with General Mediterranean Holding SA (“GMH”) as Guarantor and Harborough Invest Inc as Property Owner, to sell part of the land owned by the London Borough of Brent at BPCLC to fund the design and build of a new leisure centre paid for out of the proceeds of sale and advanced Community Infrastructure Levy (CIL).

(i)         that authority be delegated to the Strategic Director of Regeneration and Growth in consultation with the Chief Finance Officer and Chief Operating Officer to finalise negotiations and enter into Heads of Terms with General Mediterranean HoldingSA as Guarantor and Harborough Invest Inc as Property Owner in substantially the form set out in Appendix 3 of this report;

(ii)        that authority be delegated to the Strategic Director of Regeneration and Growth in consultation with the Chief Finance Officer and Chief Operating Officer to enter into negotiations, finalise and enter into a land sale agreement with General Mediterranean Holding SA and Harborough Invest Inc.

Councillor McLennan (Lead Member, Housing and Development) was pleased to introduce the report which provided an update on the lands at Unisys and Bridge Park Leisure Centre and which sought agreement to enter into Heads of Terms with General Mediterranean Holding SA (“GMH”) as Guarantor and Harborough Invest Inc as Property Owner. The agreement was to sell part of the land owned by the London Borough of Brent at BPCLC to fund the design and build of a new leisure centre paid for out of the proceeds of sale and advanced Community Infrastructure Levy (CIL). Members were reminded that the report followed on from two previous reports to the Executive on 17 June 2013 and 17 February 2014 and it also set out the next steps following entering the Heads of Terms.

The current proposal was for a hotel and housing development on the land to be developed by GMH and Harborough and Councillor McLennan referred to discussions taking place on percentage of accommodation that would be designated as affordable. Councillor McLennan looked forward to the health benefits of having a swimming pool in the leisure centre while acknowledging the annual revenue costs.

Members welcomed the opportunity to develop the site which was long awaited. They urged officers to negotiate as hard as possible for a significant proportion of the housing development to be affordable mindful of the restrictions on viability. Reference was made to recent advertisements abroad for housing development in Willesden and Councillor McLennan referred to the need for a policy to avoid this. Councillor Hirani referred to residents who were not entitled to social and affordable housing and enquired about the option of buy to rent. Councillor McLennan assured that a mix of housing development was under consideration.

Councillor Filson (Chair of Scrutiny Committee) stressed the importance of obtaining accurate financial status checks on General Mediterranean HoldingSA and Harborough Invest Inc as they were both in overseas ownership and not registered at Companies House and also thorough background checks. Members noted that any concerns would be reported back. He also drew attention to the staffing implications should the existing centre not remain open until the new premises was complete.

The Cabinet also had before them an appendix to the report which was not for publication as it contained the following category of exempt information as specified in Schedule 12 of the Local Government (Access to Information Act) 1972: 

Information relating to the financial or business affairs of any particular person (including the authority holding that information).

RESOLVED:

(i)         that authority be delegated to the Strategic Director of Regeneration and Growth in consultation with the Chief Finance Officer and Chief Operating Officer to finalise negotiations and enter into Heads of Terms with General Mediterranean HoldingSA as Guarantor and Harborough Invest Inc as Property Owner in substantially the form set out in Appendix 3 of the report from the Strategic Director, Regeneration and Growth;

(ii)        that authority be delegated to the Strategic Director of Regeneration  ...  view the full minutes text for item 9