ADD2027 Cane Hill – Grant payment to TfL

1.1. See ADD368 for detailed background of the infrastructure works carried out by Transport for London (TfL) at the Cane Hill site, which were completed at a cost to TfL in excess of £200,000. ADD368 approved a capital grant of £26,000 to TfL.
1.2. In December 2015 the GLA made a payment of £26,000 to TfL by way of capital grant in acknowledgement of the costs incurred by TfL in respect of these historic infrastructure works. TfL are seeking an additional £5,200 in respect of these costs. Although the GLA had previously believed that TfL would meet the £5,200 historical cost, they have since confirmed that they are unable to and need the GLA to cover this cost which has now been agreed.

2.1 It is proposed that a grant of £5,200 be paid to TfL under s120 of the Greater London Authority Act 1999 in acknowledgement of the costs incurred by TfL in respect of historic infrastructure works at the Cane Hill site.

2.2 This payment is the final settlement with TfL for the infrastructure works at Cane Hill.

3.1 The needs of those with protected characteristics, who are most likely to be in housing need, will be helped through this Cane Hill scheme. The scheme is on site and expected to produce 675 homes including 163 affordable homes which contain a large number of three and four bed family homes, including 16 homes suitable for wheelchair users, which will have a positive impact on people with disabilities.

4.1 The payment of grant is in acknowledgement of the costs incurred by TfL to enable the development of the wider Cane Hill site which is providing a substantial number of new homes in line with the mayoral commitments for housing and economic regeneration.

5.1 This decision seeks approval to expend £5,200 Capital Grant to acknowledge the costs incurred by TfL in respect of historic infrastructure works at the Cane Hill site. This payment is in addition to £26,000 agreed through ADD368 and is the final instalment to TfL in respect of this site.

5.2 The expenditure is available from the dedicated Cane Hill capital budget in Housing & Land department and will be expended in 2016/17 financial year. Any changes to this proposal, including the requirement of additional funds, will be subject to further approval via the Authority’s decision making process.

6.1 Section 120 of the Greater London Authority Act 1999 enables the GLA to pay grants towards meeting capital expenditure incurred or to be incurred by a functional body, including Transport for London, for the purposes of, or in connection with, the discharge of the functions of that body. A grant under section 120 must not be made subject to any limitation in respect of the capital expenditure which it may be applied towards meeting. The proposed grant payment of £5,200 to TfL as described in this paper will not be made subject to any such limitation and would therefore be available to be used by TfL towards meeting any expenditure incurred or to be incurred by TfL in connection with its functions. The foregoing sections of this paper therefore indicate that the GLA has the power to make the proposed grant.