Funding and delivery arrangements – the Second Defendant’s evidence
Funding and delivery arrangements – the Second Defendant’s evidence
At the public inquiry, evidence in relation to the proposed arrangements for funding and delivering the Scheme was given by the Second Defendant’s Director of Community Wealth Building, Darren Mackin. Mr Mackin’s evidence was that the Second Defendant was committed both to bringing forward and funding the Scheme as a standalone project at the total budget agreed by Cabinet at its meeting on 9 March 2023. At that meeting, Cabinet had approved an overall budget of £78.1M plus CPO costs. The Second Defendant would be funding the Scheme through its capital programme, for which the principal source was borrowing from the Public Works Loan Board [“PWLB”] via the Second Defendant’s housing revenue account.
Mr Mackin gave evidence that the Second Defendant did not consider there to be any funding impediment to acquiring the Order land or to delivery of the Scheme. The Second Defendant had expended considerable resources to date on acquiring the necessary land and rights to carry out the Scheme. Further land interests had been acquired by agreement. The requisite main planning approvals to authorise and to carry out the Scheme had been secured. The Scheme was a strategic priority for the Second Defendant, as it would contribute to the regeneration of Stratford, the most important town centre in Newham.
Mr Mackin said that Cabinet had appointed Populo to act as development manager for the Scheme. Populo would provide development management services and oversee delivery of the Scheme. The Scheme was to be delivered on a design and build contract. Populo were responsible for procurement of the contractor. Prior to the refurbishment works, a separate enabling works contractor would be appointed to carry out the demolition works needed to strip the building back to its frame. Mr Mackin gave evidence that the enabling works programme was expected to begin in summer 2024 and the Scheme to be substantially completed well before the end of 2027.
The inspector also heard evidence from the project director at Populo, Nicholas Clough. Mr Clough provided a more detailed breakdown of the proposed works programme for delivery of the Scheme The projected completion date for the main works was May 2027. Completion of the Scheme as a standalone project would allow the Second Defendant to decant tenants from elsewhere on the Carpenters Estate into the refurbished flats at JRP. The programme assumed that remaining leaseholders, including the Claimant and her family, would be able to return to their flats by December 2027.
Mr Clough gave evidence that both the enabling works and the main works contracts had been negotiated and contractors selected. Design work, the preparation of procurement packages for sub-contractors and pricing was in progress under a pre-construction services agreement, with a view to the main works contract being let in April 2025.
- Heading
- Introduction
- Ground of challenge
- The inspector’s decision letter
- Legal and policy framework
- Ground 1 – Viability
- The CPO Guidance
- Funding and delivery arrangements – the Second Defendant’s case
- Funding and delivery arrangements – the Second Defendant’s evidence
- The March report
- Overview and scrutiny process
- The Claimant’s case on viability and funding
- The parties’ closing submissions
- The inspector’s conclusions
- Submissions
- Discussion
- Ground 2 – Reasonable efforts to acquire by agreement
- The CPO Guidance
- The factual background
- Revised draft agreement and uplift offer
- March 2023 discussions and correspondence
- The Claimant’s objection
- The Second Defendant’s response
- Evidence at the public inquiry
- Closing submissions
- The inspector’s decision
- Submissions
- Discussion
- Ground 3 – excessive use of compulsory purchase powers
- CPO Guidance
- The parties’ contentions
- The inspector’s decision
- Submissions
- Discussion
- Conclusions
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