Agenda item

Crystal Palace and Anerley ward

(1) Authority be delegated to the Director of Housing, Planning, Property and Regeneration to settle, agree and negotiate the commercial terms in respect of the proposed disposal of the housing sites subject to Executive approval and disposal by way of a grant of lease to the CPPT for the Park.

(2) The terms of the shadow section 106 agreement attached to the agenda (Ref. Appendix F Part 2 Report) be noted, and the following confirmed –

(i)  in respect of any section of CPP to be retained by the Council and developed under a planning permission granted under reference 20/00325/OUT, that it shall comply with the terms of the shadow section 106 agreement: or

(ii)  in respect of any section of CPP to be sold or leased, that no development shall be progressed on the relevant land until such time as the purchaser or lessee has entered into a section 106 agreement with the Council, incorporating the obligations from the shadow section 106 agreement that are relevant to the part of the site.  It is acknowledged that certain obligations in relation to (non-residential) development of CPP covered in the s.106 agreement may be discharged by the Council under commercial agreements made between the purchaser/lessee and the Council.

(3) An initial addition of £4.5m to the capital programme in 2023/24 be approved to forward fund the capital regeneration works in CPP, which will need to commence prior to any of the housing land capital receipt being received; it is noted that subsequent CPP works will then be funded from the capital receipt from disposal of the housing land.

(4) The commencement of the forwarded funded heritage restoration capital works, limited to £4.5m (expected housing receipt £17.5m) be approved, noting that the capital programme will be regularly updated to reflect the impact of this on total scheme expenditure.

(5) Officers be authorised to action the disposal of the Sydenham and Rockhill housing sites ("Housing Sites") in line with the approved Outline Planning Application.

(6) The placing of advertisements of the intention to dispose of the Housing Sites and the proposed disposal by way of a grant of a long lease of CPP to CPPT to section 123(2A) of the Local Government Act 1972 and the preparation of a further report in respect of any representations received be approved.

(7) Approve the following course of action in respect of the capital requirements for the regeneration of the Park:

(i) That any capital receipt generated by the disposal of the Housing Sites will be ringfenced solely for heritage works in CPP, as required by the enabling development Planning Permission, as set out in paragraph 3.10 of the report.

(ii) That any capital receipt generated by the Housing Sites will be spent on the Park’s Regeneration Plan capital scheme (including returning funds spent to date to the Council and the endowment) within ten years of the capital receipt entering the Council’s bank account. If the funds are not spent within this time period, as set out in this report, the Council will be penalised by 2% per annum of the remaining funds and required to grant the penalty monies to the Trust.

(iii) Approve that once the capital receipt for the Housing Sites is received that the Council's capital programme budget is increased in line with the value of the receipt, subject to details of that amendment with updated scheme costs and funding being agreed by the Executive through the capital monitoring reporting process.  Any such amendments will be subject to the principle that total spending on this scheme will never exceed actual income to the Council secured from capital receipts and grants and contributions from third parties.

(iv) Agree that any interest accrued by the Council from the capital receipt for the Housing Sites is also used for the regeneration of the Park, with interest calculated at General Treasury Management rates, and the approved capital programme updated accordingly.

(8) The spend to date of £1.185m returned to the Council will be used as the match funding required for grant applications effectively recycling the investment to date.

(9) Authority be delegated to the Director of Housing, Planning, Property and Regeneration to settle, agree and negotiate the commercial terms in respect of the  proposed disposal of the Housing Sites and disposal by way of a grant of a lease to the CPPT of the Park.

(10) It is noted that the lease is to be granted on the basis of a long lease and on terms which are appropriate given the long-term nature of the interest to be granted by the Council; the Council shall obtain an independent valuation of the terms of the disposal of the Housing Sites and of the grant of lease in order to comply with the  best value considerations pursuant to s.123 of the Local Government Act 1972, and  relevant statute governing subsidy control.

(11) That authority be delegated to vary the existing Environmental Services contracts in relation to CPP on or before 1 October 2022 so that, as such arrangements apply to CPP, the idverde Parks Management and Grounds Maintenance contract and the Veolia Parks Security contract shall come to an end on 31^st March 2023, with the CPPT arranging new and equivalent contractual arrangements commencing on or before 1^st April 2023; This authority will be given subject to the CPPT having sufficiently progressed tenders for replacement management and maintenance, and security contract(s) before 1 October 2022, to the satisfaction of the Director of Environment and Public Protection in agreement with the Director of Corporate Services and Governance.

(12) Approve that the endowment fund to be met from the housing enabling receipt will be provided to CPPT as soon as sufficient funds are available to meet the target value of £4.3m, provided that at such time the Trust has already entered into a long lease for the Park. For avoidance of doubt, the amount provided for the endowment fund will be limited to the excess of the capital receipt from the enabling disposal that is not required to fund the Italian Terraces and Tidal Lakes, up to a maximum of £4.3m.

(13) Approve that, as detailed in paragraph 3.22 of the report, subject to the CPPT lease commencing on 1^st April 2023, the Council will in addition to the provision of the endowment fund, provide a grant to the Trust of £125k per annum to assist in the costs of management of CPP, noting that the payment of this grant will be reviewed every ten years and that the value of the grant shall increase annually in line with the Consumer Price Index from 1^st April 2024 (capped at a maximum of 3% per annum), subject to the term of the lease.

(14) To approve an additional project resource of £113k a year from 1 April 2023 for Culture and Regeneration for overseeing the restoration works through to completion as set out in paragraph 3.26 of the report; this will fund one dedicated post and the costs of external specialist advice to deliver this complex scheme.

(15) Necessary adjustments be made to revenue budgets to reflect the termination of current contract arrangements relating to management, maintenance and security services within Environment & Public Protection from 1^st April 2023 and the loss of existing lease rental income from CPP to Property and Culture & Regeneration from 1^st April 2023, as set out in section 6, and Part 2 of the same report.

(16) The placing of advertisements of the intention to dispose of the remainder of the Park by way of a long lease to the Crystal Palace Park Trust pursuant to section 123(2A) of the Local Government Act 1972 and the preparation of a further report in respect of any representations received be approved.

(17) Authority be delegated to the Director of Corporate Services and Governance in conjunction with and in consultation with the Portfolio Holder for Renewal, Recreation and Housing,  to take  all of the necessary steps to appropriate  for planning purposes the relevant  site and to manage the implications arising therefrom and  to deal with any compensation issues.

(18) All matters relating to the legalities of the recommendations be delegated to the Director of Corporate Services and Governance in agreement with the Director of Housing, Planning, Property & Regeneration.

Report HPR2022/022

The report provided an update on the Regeneration Plan for Crystal Palace Park and set out the next steps to take forward the capital scheme.

The report made recommendations in relation to securing the legal agreements to dispose of the residential sites as part of the housing Enabling Development securing funding for the first phases of works, as well as transferring the Park to the Crystal Palace Park Trust (CPPT).

The Leader thanked officers for the hard work that had gone into this project, and commented that although substantial funding for the Park had been lined up it was important that the project remained within budget.

The capital programme provisions in the report would be reported to full Council for approval.

The report had been scrutinised by the Renewal, Recreation and Housing PDS Committee at its meeting on 14^th June 2022 and the Committee had supported the proposals.

RESOLVED that

(1) Authority be delegated to the Director of Housing, Planning, Property and Regeneration to settle, agree and negotiate the commercial terms in respect of the proposed disposal of the housing sites subject to Executive approval and disposal by way of a grant of lease to the CPPT for the Park.

(2) The terms of the shadow section 106 agreement attached to the agenda (Appendix F, Part 2 Report) be noted, and the following confirmed –

(i)  in respect of any section of CPP to be retained by the Council and developed under a planning permission granted under reference 20/00325/OUT, that it shall comply with the terms of the shadow section 106 agreement: or

(ii)  in respect of any section of CPP to be sold or leased, that no development shall be progressed on the relevant land until such time as the purchaser or lessee has entered into a section 106 agreement with the Council, incorporating the obligations from the shadow section 106 agreement that are relevant to the part of the site.  It is acknowledged that certain obligations in relation to (non-residential) development of CPP covered in the s.106 agreement may be discharged by the Council under commercial agreements made between the purchaser/lessee and the Council.

(3) An initial addition of £4.5m to the capital programme in 2023/24 be approved to forward fund the capital regeneration works in CPP, which will need to commence prior to any of the housing land capital receipt being received; it is noted that subsequent CPP works will then be funded from the capital receipt from disposal of the housing land.

(4) The commencement of the forwarded funded heritage restoration capital works, limited to £4.5m (expected housing receipt £17.5m) be approved, noting that the capital programme will be regularly updated to reflect the impact of this on total scheme expenditure.

(5) Officers be authorised to action the disposal of the Sydenham and Rockhill housing sites ("Housing Sites") in line with the approved Outline Planning Application.

(6) The placing of advertisements of the intention to dispose of the Housing Sites and the proposed disposal by way of a grant of a long lease of CPP to CPPT to section 123(2A) of the Local Government Act 1972 and the preparation of a further report in respect of any representations received be approved.

(7) Approve the following course of action in respect of the capital requirements for the regeneration of the Park:

(i) That any capital receipt generated by the disposal of the Housing Sites will be ringfenced solely for heritage works in CPP, as required by the enabling development Planning Permission, as set out in paragraph 3.10 of the report.

(ii) That any capital receipt generated by the Housing Sites will be spent on the Park’s Regeneration Plan capital scheme (including returning funds spent to date to the Council and the endowment) within ten years of the capital receipt entering the Council’s bank account. If the funds are not spent within this time period, as set out in this report, the Council will be penalised by 2% per annum of the remaining funds and required to grant the penalty monies to the Trust.

(iii) Approve that once the capital receipt for the Housing Sites is received that the Council's capital programme budget is increased in line with the value of the receipt, subject to details of that amendment with updated scheme costs and funding being agreed by the Executive through the capital monitoring reporting process.  Any such amendments will be subject to the principle that total spending on this scheme will never exceed actual income to the Council secured from capital receipts and grants and contributions from third parties.

(iv) Agree that any interest accrued by the Council from the capital receipt for the Housing Sites is also used for the regeneration of the Park, with interest calculated at General Treasury Management rates, and the approved capital programme updated accordingly.

(8) The spend to date of £1.185m returned to the Council will be used as the match funding required for grant applications effectively recycling the investment to date.

(9) Authority be delegated to the Director of Housing, Planning, Property and Regeneration to settle, agree and negotiate the commercial terms in respect of the  proposed disposal of the Housing Sites and disposal by way of a grant of a lease to the CPPT of the Park.

(10) It is noted that the lease is to be granted on the basis of a long lease and on terms which are appropriate given the long-term nature of the interest to be granted by the Council; the Council shall obtain an independent valuation of the terms of the disposal of the Housing Sites and of the grant of lease in order to comply with the  best value considerations pursuant to s.123 of the Local Government Act 1972, and  relevant statute governing subsidy control.

(11) That authority be delegated to vary the existing Environmental Services contracts in relation to CPP on or before 1 October 2022 so that, as such arrangements apply to CPP, the idverde Parks Management and Grounds Maintenance contract and the Veolia Parks Security contract shall come to an end on 31^st March 2023, with the CPPT arranging new and equivalent contractual arrangements commencing on or before 1^st April 2023; This authority will be given subject to the CPPT having sufficiently progressed tenders for replacement management and maintenance, and security contract(s) before 1 October 2022, to the satisfaction of the Director of Environment and Public Protection in agreement with the Director of Corporate Services and Governance.

(12) Approve that the endowment fund to be met from the housing enabling receipt will be provided to CPPT as soon as sufficient funds are available to meet the target value of £4.3m, provided that at such time the Trust has already entered into a long lease for the Park. For avoidance of doubt, the amount provided for the endowment fund will be limited to the excess of the capital receipt from the enabling disposal that is not required to fund the Italian Terraces and Tidal Lakes, up to a maximum of £4.3m.

(13) Approve that, as detailed in paragraph 3.22 of the report, subject to the CPPT lease commencing on 1^st April 2023, the Council will in addition to the provision of the endowment fund, provide a grant to the Trust of £125k per annum to assist in the costs of management of CPP, noting that the payment of this grant will be reviewed every ten years and that the value of the grant shall increase annually in line with the Consumer Price Index from 1^st April 2024 (capped at a maximum of 3% per annum), subject to the term of the lease.

(14) To approve an additional project resource of £113k a year from 1 April 2023 for Culture and Regeneration for overseeing the restoration works through to completion as set out in paragraph 3.26 of the report; this will fund one dedicated post and the costs of external specialist advice to deliver this complex scheme.

(15) Necessary adjustments be made to revenue budgets to reflect the termination of current contract arrangements relating to management, maintenance and security services within Environment & Public Protection from 1^st April 2023 and the loss of existing lease rental income from CPP to Property and Culture & Regeneration from 1^st April 2023, as set out in section 6, and Part 2 of the same report.

(16) The placing of advertisements of the intention to dispose of the remainder of the Park by way of a long lease to the Crystal Palace Park Trust pursuant to section 123(2A) of the Local Government Act 1972 and the preparation of a further report in respect of any representations received be approved.

(17) Authority be delegated to the Director of Corporate Services and Governance in conjunction with and in consultation with the Portfolio Holder for Renewal, Recreation and Housing,  to take  all of the necessary steps to appropriate  for planning purposes the relevant  site and to manage the implications arising therefrom and  to deal with any compensation issues.

(18) All matters relating to the legalities of the recommendations be delegated to the Director of Corporate Services and Governance in agreement with the Director of Housing, Planning, Property & Regeneration.