Agenda item

RESOLVED:

      I.          Noted the progress made to date on the sites listed below and as shown on the plans for proposed redevelopment to provide 306 new homes at:

a.     Lexden and Steyne Road

b.     Northolt Grange Community Centre

c.     Sussex Crescent.

 

     II.          Noted and agreed to proceed with the redevelopment of the Sites in the HRA (and not by BLRP as originally proposed) in accordance with the budget allocation approved by Cabinet as part of the HRA Business Plan 2023-2024 in January 2023.

   III.          Noted the outcome of the tender exercise for the main construction contracts for the redevelopment of the Sites and approved the award of the contracts.

  IV.          Delegated authority to the Strategic Director of Housing and Environment to:

    V.          Award a Design and Build JCT contract for the construction of 188 new homes (71 London Affordable Rent, 90 Shared Ownership and 27 Private Sale dwellings) at Lexden and Steyne Road (the Steyne Estate). 

  VI.          Award a Design and Build JCT contract for the construction of 92 new affordable homes at Northolt Grange.

VII.          Award a Design and Build JCT contract for the construction of 26 new affordable homes at Sussex Crescent.  

VIII.          (a) Agreed in principle for the Sites to be appropriated for planning purposes and then for housing purposes.

  IX.          (b) Delegated authority to the Strategic Director of Economy and Sustainability .to undertake the appropriation processes for each Site as, and when, necessary.

    X.          (a) Noted the current position with regard to the land swap in respect of Northolt …. Grange Community Centre as set out in paragraph 2.9.11 below and agrees …. the proposed steps to mitigate the risks set out in paragraph 2.9.12.

  XI.          (b) Delegated authority to the Strategic Director of Housing and Environment to agree and secure compliance with such conditions as may be imposed by the Secretary of State for Education.

XII.          Agreed to grant a lease of the land shown on the plan at Appendix 2 shown in plain green) to the Roman Catholic Diocese of Westminster / St Raphael’s Roman Catholic Primary School as part of the Northolt Grange C.C. site development and associated land swap.

XIII.          Noted the successful bid for Care and Specialist Supported Housing (CASSH) grant for the sheltered homes proposed on the Lexden Road Site and delegates authority to the Strategic Director of Housing and Environment to enter into the necessary grant agreement to secure the funding.

 

REASON FOR DECISION AND OPTIONS CONSIDERED:

 

Tranche 2 Delivery Programme

 

Ealing Council had set an ambitious target to deliver 4,000 genuinely affordable homes (GAH) by 2026. The BLRP Business Plan Tranche 2 Programme of sites, included within the GLA Affordable Homes Programme (AHP) 2016-2023, was approved by Cabinet in April 2022. However, due to a significant downturn in the economy, including increasing loan interest rates, major build cost inflation, and instability in the supply chains and development industry, the viability of schemes in Tranche 2 has been negatively impacted.

 

To address this, the Council and BLRP conducted a review of the programme with the aim of improving the viability of schemes and ensuring delivery. Options considered included deferring schemes, reducing cost and improving design efficiency, changing tenures, and securing additional funding.

 

Due to AHP 2016-23 grant conditions requiring site starts by March 2023, the schemes of Mandeville Road, Broomcroft Avenue, and Canberra Drive have been deferred from Tranche 2 and will be delivered in the next GLA AHP (2021?26). Negotiation with the GLA to secure additional grant of £9.82m for the remaining schemes of Lexden and Steyne Road, Northolt Grange C.C, and Sussex Crescent has been successful, with approval given in January 2023.

 

Under current conditions, financial modelling has confirmed that, even with the additional grant, these schemes remain unviable if delivered by BLRP but are now viable through the HRA. This is largely due to the HRA's ability to secure funding from the Public Works Loan Board at a lower interest rate and on different terms than Broadway Living RP can borrow from the Council.

 

As a result, it is proposed that Lexden and Steyne Road, Northolt Grange C.C., and Sussex Crescent are now delivered through the HRA. In preparation, a budget allocation has been made within the HRA Business Plan 2023-2024, approved by Cabinet in January 2023. It should also be noted that, if economic conditions improve, the Council and BLRP may agree in the future to BLRP acquiring the schemes from the HRA, reducing HRA borrowing. This would be subject to a further decision by Cabinet.

 

Approval to enter into Pre-Construction Services Agreement (PCSA) contracts for these sites was given by Cabinet in December 2022. The presented report sought approval to award Design and Build JCT contracts to progress developments on time and according to schedule.

 

 

Lexden and Steyne Road

 

Unit type	Number	Affordable (LAR)	Shared Ownership	Private Sale
1b/2p flat	36	0%	16%	3.20%
1b+ flat	71	37.8%	0%	0%
2b/4p flat	72	0%	31.9%	6.30%
3b/5p flat	9	0%	0%	4.80%
Total	188	71	90	27
		37.8%	47.9%	14.3%

 

Lexden and Steyne Road (or the Steyne Estate) was an existing Council estate at the junction of Lexden and Steyne Roads in Acton Central ward and within Acton District Town Centre. The estate consisted of: Lantry Court, comprising 23 retirement bungalows and maisonettes with small car park but no communal facilities; two identical 22-storey towers: Rufford Tower and Moreton Tower containing 100 dwellings each (with associated car parks); and play space and landscaping.

 

The proposed project would deliver three new buildings on the estate in addition to accessible landscaping and play improvements, a podium car park, and improvements to the under crofts of existing towers.

 

The scheme included an Older Adults building, containing 71 London Affordable Rent sheltered housing units (specialised flats for independent living with no permanent on-site care but designed specifically with older people in mind). A collection of six 3-bed 5-person flats (currently for outright sale) to the north of the site aimed specifically at families. And a separate, general needs residential building containing 90 Shared Ownership and 21 private sale homes (111 total).

 

In February 2022, a two-stage procurement process was agreed by Cabinet as being suitable for the appointment of a main contractor for the Lexden and Steyne Road scheme.

 

Approval to enter into a PCSA contract for this site was given by Cabinet in December 2022.

 

This report sought approval to award a Design and Build JCT contract as below to progress development on time and according to schedule.

 

Following a compliant tender process, it was proposed to enter into a JCT Design and Build (2016) Contract.

 

Proposed Programme:

 

Item	Start	End	Notes
PCSA Signed		01/02/2023
Stage 4 Design	01/02/2023	26/05/2023
Pre-commencement Condition discharges	17/02/2023	25/05/2023
Utility Diversions	16/03/2023	24/04/2023
Early GLA Works	13/03/2023		Slit trenches, trial pits and utility disconnections
Main Works Contract Signed		13/03/2023
Main Build Phase		27/10/2025

 

 

In addition, confirmation was received that an application for £12,131,983 Care and Specialist Supported Housing (CASSH) grant for the sheltered homes on the Lexden Site has been successful. Delegated authority is therefore sought to enter into the associated grant agreement.

 

Northolt Grange C.C. Scheme

 

 

Unit type	Number	Affordable (LAR)	Shared Ownership
1b/2p flat	43	46.8%	0%
2b/3p flat	4	4.3%	0%
2b/3p WC flat	4	4.3%	0%
2b/4p flat	19	20.8%	0%
2b/4p WC flat	4	4.3%	0%
3b/4p WC flat	1	1%	0%
3b/5p flat	9	9.8%	0%
4b/6p house	8	0%	8.7%
Total	92	84	8
		91.3%	8.7%

 

This scheme involved redeveloping the Northolt Grange C.C. to provide 92 new affordable homes and new community open space.

 

The former community centre site will be combined with land to be acquired from the Roman Catholic Diocese of Westminster through a ‘land swap’ agreement, as approved by Cabinet in January 2021 for which the consent of the Secretary of State is required and has been applied for.

 

The design development for the main works, included community consultation and a series of five Pre-Application meetings. The scheme is for a five-storey building, facing the street, providing 84 new London Affordable Rented (LAR) homes including 43 no. 1 bedroom flats, 31 no. 2 bedroom flats and 10 no. 3 bedroom flats (including duplexes). A row of 8 two storey 4-bedroom town houses (shared ownership) behind the main block, creates a car-free street and amenity space.

 

The planning proposals for the overall scheme were split into two separate applications, namely the school-works (temporary classrooms / enabling works / demolition) and the main works. Planning permission was granted for the school-works in October 2021 and Planning Committee approved the application for the main works in June 2022.

 

Approval to enter into a PCSA contract for this site was given by Cabinet in December 2022. This report now seeks approval to award a Design and Build JCT contract as below to progress development on time and according to schedule.

 

Following a compliant tender process, it was proposed to enter into a JCT Design and Build (2016) Contract to deliver 84 homes for London Affordable Rent and eight homes for Shared Ownership sale

 

Proposed programme:

 

Item	Start	End	Notes
PCSA signing		01/02/2023	Approved by Cabinet on 07/12/2022
Portakabin contract signing		01/02/2023	Approved by Cabinet on 07/12/2022
Asbestos removal from Community Centre	16/02/2023	01/03/2023	Triggers Start on Site for GLA funding – dependent on Contractor’s programme
Cabinet decision – JCT Contract	22/02/2023	07/03/2023
SoS DfE decision	31/08/2022	27/03/2023	Expected date
Land swap and possible lease		29/03/2023	Between LB Ealing and RCDoW/St Raphael’s School
Licence swapped land back to RCDoW/ School		29/03/2023	For land transferred to LB Ealing – to last until temp classrooms installed
JCT Contract signed		22/03/2023	Triggers Start on Site grant claim from GLA
Enabling works on LB Ealing and RCDoW/ School land	09/03/2023	18/08/2023	Commencing under the PCSA and Portakabin contract – dependent on Contractor’s programme
Drainage installation	03/04/2023	21/04/2023	Triggers acceptance of Building Regs application under pre-June 2022 building regulations – dependent on Contractor’s programme
Temporary Classrooms installed	03/04/2023	12/05/2023
School move to Temp Classrooms and end of licence on LB Ealing land	15/05/2023	02/06/2023	Late May half term
Enabling works on former school land	05/06/2023	18/08/2023	Including demolition in summer holidays
Remaining groundworks commence	21/08/2023	27/10/2023
Project completion		08/2025	Two-year build programme

 

 

adjacent school (St Raphael’s Roman Catholic Primary School) which required consent from the Secretary of State for Education for the disposal of the school land, as part of that land swap. This has been applied for as shown in the above programme.

 

As part of ongoing discussion with the Department for Education there was a likely requirement for the council to agree to lease some playing field land to the school in place of a proposed licence.

 

Authority was therefore sought for the Council to grant a lease of the playing field land to the Roman Catholic Diocese of Westminster / St Raphael’s Roman Catholic Primary School as part of the Northolt Grange CC site development.

 

The officer from the Department for Education / Education and Skills Funding Agency (DfE/ESFA) has confirmed that the application will be considered by the DfE Playing Fields Panel on 14^th March 2023 with a recommendation for approval – subject to certain conditions which are under negotiation. However, it is very tight to get the results of the Playing Fields Panel to the Secretary of State for Education for their consideration prior to the Parliamentary recess which commences on 31^st March 2023. Consequently, there is a risk that the DfE approval will not be received this financial year.

 

In order to mitigate this risk several actions had been taken: A break clause is being inserted in the JCT Contract in case there is a delay in the DfE decision on the application. This will limit the financial exposure for LB Ealing. Works which are eligible for GLA grant to be claimed can be undertaken on LB Ealing owned land in order to mitigate any delays. A PCSA has been entered into with the main Contractor (decision made by Cabinet in December 2022) to begin the design work and submit statutory applications in order to facilitate a prompt start on site.

 

Since the publication of the HRA Business Plan in January 2023, a final contract recommendation and risk report has been received detailing the areas where cost risks lie (see Confidential Appendix 2). These risks have subsequently been added into the financial appraisal, leading to the increase in the total scheme cost reported here. As the development progresses through the RIBA Stage 4 design process, some of these risks will not be realised and other mitigation in the form of Value Engineering (VE) will be investigated and implemented if they are not detrimental to the overall quality of the development. As this work is being completed any changes in budget will be brought to Members in the form of a further Cabinet report. 

 

2.8     Lexden and Steyne Road

 

Unit type	Number	Affordable (LAR)	Shared Ownership	Private Sale
1b/2p flat	36	0%	16%	3.20%
1b+ flat	71	37.8%	0%	0%
2b/4p flat	72	0%	31.9%	6.30%
3b/5p flat	9	0%	0%	4.80%
Total	188	71	90	27
		37.8%	47.9%	14.3%

 

The site was within five minutes walking distance of Northolt Underground Station and is proposed to be car free with one on-street blue badge space adjacent to the site. Pedestrian and cycle access will be from Sussex Crescent.

 

The scheme consisted of a single four storey block, 26 flats at London Affordable Rent.

 

Planning permission for the scheme was granted in October 2022.

 

Having a highly efficient façade enables the scheme to make the most of low carbon heating methods such as air source heat pumps. It will also be supported by solar panels to further reduce energy demand and reduce costs for residents.

 

The development was tendered between May and July 2022 and two competitive tenders were returned.

 

Approval to enter into a PCSA contract for this site was given by Cabinet in December 2022. The PCSA was signed on 27^th January 2023. This report now seeks approval to award a Design and Build JCT contract as below to progress development on time and according to schedule.

 

Following a compliant tender process, it is proposed to enter into a JCT Design and Build (2016) Contract to deliver 26 homes for London Affordable Rent.

 

Proposed Programme:

Item	Start	End	Notes
PCSA Signed		01/02/2023
Stage 4 Design	01/02/2023	26/05/2023
Pre-commencement Condition discharges	17/02/2023	25/05/2023
Utility Diversions	16/03/2023	24/04/2023
Early GLA Works	13/03/2023		Slit trenches, trial pits and utility disconnections
Main Works Contract Signed		13/03/2023
Main Build Phase		27/10/2025

 

 

Golf Links Phase 3

 

Cabinet approved the award of a Design and Build JCT form of contract to the successful bidder following a tender process. Since December Cabinet 2022 it was established that the final contract bid was higher than the final sum reported to Cabinet in December 2022.

 

Having re-assessed the tender returns, taking account of the original quality and cost weighting, it has been confirmed by the Employer’s Agent (F&G) that the ranking of the tender returns and therefore successful contractor has not changed from the original assessment. A notice of contract award and standstill letters to the unsuccessful bidders have been issued on that basis.