Agenda item
2 Trafalgar Way, London (PA/15/02668)
Proposal:
Application for Deed of Variation to section 106 agreement dated 10 Nov 2009 ref PA/08/01321 (as amended by a Deed of Modification dated 9th December 2014), ref: PA/14/01771
Recommendation:
That the Committee resolve to APPROVE a modification under s106A of the 1990 Planning Act of the 2009 Agreement (as modified by the 2014 Agreement) subject to any direction by The London Mayor and the prior completion of a second deed of modification to secure planning obligations.
Minutes:
Paul Buckenham (Development Control Manager, Development and Renewal) introduced the item for a deed of variation to the section 106 agreement dated 10 Nov 2009 ref PA/08/01321.
Jermaine Thomas (Planning Officer, Development and Renewal) presented the detailed report. He explained the background to the application. In March 2015, the Applicant submitted an application under a new provision known as Section 106B to change the affordable housing requirements of the 2014 and the 2009 permission to reduce the off-site contribution and to remove the 66 on site affordable units. The Council’s Viability Consultants have carried out a robust assessment and agree with the developer that the 2014 scheme was unviable with the current affordable housing requirement.
However, the application was refused in April 2015 on the basis that it did not represent a stalled scheme and that an alternative viable scheme has planning permission and is capable of being built. .
The applicant had since submitted an appeal against the refusal to be determined at a Public Hearing scheduled for November 2015. The possible outcomes of the appeal were noted.
As part of the process of planning for the hearing, the applicant and the Council have met to explore ways to provide a good level of affordable housing without compromising the viability of the scheme, by agreeing a variation to the current legal agreement under Section 106A.
One option considered, that was the subject of this application, was that the applicant would remove entirely the onsite requirement for affordable housing but would increase the off-site contribution.
The table in the committee report showed a clear comparison between the consented schemes and the proposal.
The application complied with policy given the results of the viability assessments, that it would deliver additional affordable housing in the Borough and that the contribution met the relevant tests in policy.
In view of the issues, Officers were recommending that the variation be approved.
In response, some Member questioned the need for the proposal given the market value of the proposed units within the scheme. It was also questioned whether the proposal represented a fair exchange and why, given the nature of the amendment, it could be considered a variation.
In response to these points, it was reported that, if approved, it was likely that the parallel appeal would be withdrawn. However if the appeal proceeded, the applicant’s offer and the Council’s decision on the Section 106A variation would be a material consideration.
The Greater London Authority have been consulted and have confirmed that they do not wish to make any further comments.
In response to further questions, Officers explained the issues that would be taken to account at the appeal. It was also pointed out that given the difficulties with delivering affordable housing on the site due to the site constraints, this was a unique case.
In conclusion, Members noted the need for affordable housing in the Borough and that there were a number of other scheme coming forward that would provide contributions for the public realm. Councillor Marc Francis proposed, seconded by Councillor Andrew Cregan that the contribution towards public realm be added to the sum towards off site affordable housing. This was agreed
On a vote of 7 in favour, 1 against and 0 abstentions, it was RESOLVED:
1. That a modification under s106A of the 1990 Planning Act of the 2009 Agreement (as modified by the 2014 Agreement) be APPROVED at 2 Trafalgar Way, London (PA/15/02668) subject to:
2. Any direction by The London Mayor.
3. The prior completion of a second deed of modification to secure the planning obligations in the Committee report subject to the following change to the financial obligations:
That the contribution towards public realm be added to the contribution towards affordable housing.
4. That the Corporate Director Development & Renewal is delegated power to negotiate the second deed of modification referred to at 3.3 above within normal delegated authority.
Supporting documents: