URL: https://moderngov.southwark.gov.uk/ieDecisionDetails.aspx?ID=8232

Decision Maker: Strategic Director of Resources

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Selection of the development partner and entering into the pre-development agreement

Content: Selection of the development partner and entering into the pre-development agreement   That in consultation with the head of property and the cabinet member for new homes and sustainable development:   1.  That the Gateway (GW) 2 decision be approved to enter into a Pre-Development Agreement (PDA) for the delivery of Keyworker Housing (KWH) and a community facility, with Bouygues UK (formerly LinkCity), selected through the Pagabo Framework, commencing January 2025 for a period of circa 12 months, with the potential underwriting costs of up to £750k.   2.  That it be noted that, in line with the GW1 approval, this provides for:   ·  the council to underwrite 50% of the preferred bidder’s costs for the Pre-Development Agreement (PDA) period, to a capped maximum £750k, payable only in the event of unsuccessful PDA outcomes (failure to achieve Planning) from the Regeneration and Development Fund reserves, General Fund, and not payable in the event of the preferred bidder choosing to withdraw.   ·  the developer to obtain successful Planning outcome   ·  the parties to conclude the negotiations of the complete Development Agreement and Agreement for Lease   3.  That it be noted that, in line with the GW1 approval, and upon successful completion of the PDA outcomes, further delegated approval will be sought from the Strategic Director of Resources in consultation with the Head of Property and the Cabinet Member for New Homes and Sustainable Development for:   ·  the award of the DA, disposal of land and acquisition of land, and other appropriate documentation (including the granting of a lease over the council’s land for a 40-year period, an agreement for lease, and scope to grant a new lease beyond the initial lease period).   ·  payment to Pagabo for the use of the Pagabo framework, upon successful conclusion of the DA, anticipated to be £95k (of which £75K at signing of the DA plus 1% of the PDA costs, circa £20k   ·  the decision with regards to any changes in the funding strategy (currently grant funding), as already delegated to the Strategic Director of Resources.  

Date of Decision: January 9, 2025