Greenwich Council

Agenda item

Proposal to modify the Deed of Planning Obligation dated 23 February 2004 by agreement under Section 106A (1)(a) of the Town and Country Planning Act 1990 and other powers in respect of Development at Greenwich Peninsula, SE10

To resolve to enter into the modification of the Section 106 deed in respect of Development at Greenwich Peninsula dated 23rd February 2004 (planning ref: 02/2903/O) by agreement, as set out in Section 6 of this report, under Section 106A (1)(a) of the Town and Country Planning Act 1990 and other powers.

Decision:

Resolved –

 

Unanimously

 

To enter into the modification of the Section 106 deed in respect of Development at Greenwich Peninsula dated 23rd February 2004 (planning ref: 02/2903/O) by agreement, as set out in Section 6 of the report, under Section 106A (1)(a) of the Town and Country Planning Act 1990 and other powers

 

And additional requirements:

 

·                    That the Local Authority hold regular reviews with the Developer as the development progresses, in order to establish whether additional affordable housing can be provided

·                    That the modification of the Section 106 deed does not set a precedent elsewhere on the Greenwich Peninsula site in terms of development plots with no affordable housing.

Minutes:

Councillor Roberts declared a personal interest, advising that he periodically receives briefings on progress in relation to this Item.  Councillor Roberts left the room and did not take part in the discussions or vote on the proposal.

 

The Planning Manager (Major Development) gave an illustrative presentation to the report, recommending to the Board to resolve to enter into the modification of the Section 106 deed in respect of development at Greenwich Peninsula site.

 

The Board noted the report, and that the proposed modification related to development proposed on plots MO101, MO103, MO104, MO114, MO115, MO116, MO117, NO601, NO602, NO607 and NO608 of the approved masterplan (planning ref: 02/2903/O).

 

The meeting was addressed by a representative of the City Peninsula Residents’ Association.  It was stated that residents were opposed to proposal because it would result in a lower allocation of affordable housing and a polarised community across the peninsula area.  The representative stated that residents knew that the Council’s leverage to control the development progress was supported by a condition under the approved scheme.  However, the proposal would remove that leverage and provide scope for the applicants to renegotiate a lower allocation of affordable in future planning applications, and that would lead to a loss of control by the Council of the development process.  Thus, the applicants would have an opportunity to delay delivery, thereby acquiring time to improve their viability.

 

The Board was further advised by the representative of the City Peninsula Residents’ Association that residents were aware that in addition to a £50m affordable housing grant from the government, the applicants would benefit from the sale price they would receive from the registered provider, and a discount on the cost of the land.  Given the high levels of subsidy involved, residents were suggesting to the Board to ensure publicity of the developers’ report on viability for further scrutiny of the application.

 

A representative from the Greenwich Conservation Group (GCG) also addressed the meeting.  It was stated that the Group was opposed to the proposal, and had questioned whether the Mayor of London was consulted on it.  The representative informed that the Group believed that the proposal would remove the safeguards that the Council had in controlling the development process, thereby presenting uncertainty in the rate of affordable housing to be delivered, and timescale of delivery of the scheme. Thus, the Group was suggesting to the Board to request confirmation from the developers in respect of delivery dates and construction periods for the modifications to take place.  The Group was seeking confirmation from the Board not to use the proposal as a precedent for future developments within the Peninsula Masterplan area.  The representative added that the Group was also recommending to the Board to request regular reviews between the Council and the applicants on progress of the development, with reappraisals as appropriate, in order to ensure adherence with the arrangements.

 

The Board sought clarification and was advised by the Officer that the £50 million of affordable housing grant remained allocated to the developers.  Agreeing the recommendation would enable the parties to the Section 106 Agreement that was signed on 23 February 2004 to enter into a Deed of Variation in respect of development on 11 plots on the Greenwich Peninsula site.  The arrangements would help to accelerate residential development on the Peninsula site and secure affordable rented housing at target rents.

 

In response to questions about the modifications in relation to those considered by the Planning Board on 28 February 2013, the Officer stated that they stemmed from concerns that the developers had about a number of risks that could affect the development.  There could be delays in achieving planning permission, and risks associated with reduced sales rates and changes in viability.  However, should the developers be unable to access the £50m grant to meet the timescales for providing the affordable housing, they could seek to agree with the Council a further modification of the 2004 Section 106 Agreement for Greenwich Peninsula in respect of the development of the 11 plots.

 

In considering submissions made at the meeting, the Board agreed with a suggestion to ensure that the proposal would not be used as a precedent for future developments across the site, as it was necessary to secure arrangements for additional affordable housing and a mixed community living.  The Board also echoed views that regular reviews of the development arrangements should take place to ensure compliance.  It was

 

Resolved –

 

Unanimously

 

To enter into the modification of the Section 106 deed in respect of Development at Greenwich Peninsula dated 23rd February 2004 (planning ref: 02/2903/O) by agreement, as set out in Section 6 of the report, under Section 106A (1)(a) of the Town and Country Planning Act 1990 and other powers

 

And additional requirements:

 

·                    That the Local Authority hold regular reviews with the Developers as the development progresses, in order to establish whether additional affordable housing can be provided

·                    That the modification of the Section 106 deed does not set a precedent elsewhere on the Greenwich Peninsula site in terms of development plots with no affordable housing.

Supporting documents: