Issue details
Poplar Baths & Dame Colet House - Financial Close
The Mayor to be recommended to:
• Confirm acceptance of the variations to the Development Agreement to allow the project to reach financial close.
• Confirm his preference with regard to the indemnity requirements now required by the Developers Funders in order for the deal to be finalised. These options are set out in Section 2 of the report.
Decision type: Key
Decision status: Recommendations Approved
Wards affected: Blackwall & Cubitt Town; Lansbury; Limehouse; St Dunstan's; Stepney Green;
Notice of proposed decision first published: 04/06/2014
This decision will be taken under urgency procedures.
Reason for urgency:
The Poplar Baths and Dame Colet scheme has been significantly delayed due to negotiations resulting in these variations. This has been driven as noted by the need to make the project bankable. Over this time the cost of financing the scheme has risen and whilst within the current cabinet approval further cost increases may make the scheme unaffordable to the council. The current and recent trend in interest rate swap hedging indicates a continued cost increase to the project for any delay. Failure to enter into the contracts because of this delay given that the bank and developer are ready and waiting to sign could give rise to claims from either the developer or bank who may seek to recover losses. Even were these claims to fail fighting them would cost the Council irrecoverable costs.
[Further details available on the General Exception Notice published with this issue.]
Anticipated restriction: Fully exempt (the whole report will be exempt) -
Explanation of anticipated restriction:
The report will be exempt in its entirety. The report contains information that is commercially sensitive in relation to the contract documents, the council’s proposal around achieving financial close and the requirements of the funder.
Decision due: Not before 12th Jun 14 by Mayor's Executive Decision Making
Consultation process
As above
Public contact name: Nadir Ahmed nadir.ahmed@towerhamlets.gov.uk or 020 7364 6710
Consultees
Extensive consultation has taken place within the council and with the development partner and funder. In addition, the council has sought and received legal advice on all aspects of achieving financial close.
Has an Equality Analysis been carried out and if so the result of this Assessment?: No
What supporting documents or other information will be available?: None
Agenda items
- 13/06/2014 - Mayor's Executive Decision Making Poplar Baths & Dame Colet House - Financial Close 13/06/2014