MD2570 Beam Park Project Revenue Expenditure

1.1 The site at Beam Park comprises 29ha and spans across the boroughs of Barking & Dagenham and Havering. The site is owned freehold by GLA Land and Property Ltd (GLAP). CPUK was appointed as GLAP’s development partner to deliver residential-led development on the land by MD1664 (April 2016).

1.2 The site has planning consent for 3,000 homes, 50% being affordable, a new train station, two new primary schools, a GP surgery and a new park. Outline planning consent is in place for the whole development and detailed consent is in place for the first phase of the development. CPUK started on site in early 2019 and work to progress planning and design of phase two is underway.

1.3 Details of the approvals secured over the lifetime of the project are as follows:
• MD1365 (July 2014), under which the Mayor approved expenditure to undertake intrusive site investigations, carry out development appraisals to ensure best consideration for the site is achieved;
• MD2104 (April 2017) requested expenditure for the appropriate monitoring and other costs associated with the construction of homes at Beam Park; and
• Through Director Decision (DD)2138 (June 2017) the Executive Director of Housing and Land approved GLAP entering into a Development Agreement with CPUK.

1.4 Additional expenditure is now required for ongoing legal and consultancy costs for the management of the Development Agreement over the next five years.

1.5 The requested amount will cover GLAP’s legal costs associated with fulfilling its requirements under the development agreement. This includes the negotiation and grant of building leases, transfer of freehold land for houses, review of under leases, and review of the school and station agreements. GLAP has retained external legal advisors. Undertakings for non routine legal costs, incurred due to requests from CPUK not envisaged under the Development Agreement, will be requested from CPUK.

1.6 The requested amount also covers design review costs; GLAP has a retained external design consultant to review design plans for the central park and future phases. This will ensure a high quality scheme with a consistent design approach is realised.

1.7 Allowance has been made for other incidental costs such as invasive species surveys and treatments. GLAP will also require external consultancy support in the calculation of planning and sales overage in future phases.

1.8 GLAP’s retained legal advisors were procured through the TfL legal framework. All other external consultants have been, or will be, procured following competitive procedures.

2.1 Expenditure is required to fulfil the ongoing management of the development agreement. This comprises legal and consultancy costs for the next five years.

2.2 The development will deliver 3,000 residential units when complete. This helps to fulfil the Mayor’s objective to increase housing supply in London, particularly affordable housing. Once completed this scheme will have transformed formerly vacant industrial land into a new neighbourhood in east London.

3.1 Under section 149 of the Equality Act 2010, as public authorities, the Mayor and the GLA are subject to a public-sector equality duty and must have ‘due regard’ to the need to (i) eliminate unlawful discrimination, harassment and victimisation; (ii) advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and (iii) foster good relations between people who share a relevant protected characteristic and those who do not. Protected characteristics under section 149 of the Equality Act are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage or civil partnership status.

3.2 Throughout the decision-making process, as approvals have been sought to facilitate significant housing development, due regard has been had to the ‘three needs’ outlined above. The housing shortage in London disproportionately negatively affects people with certain protected characteristics. For example, young, disabled and BAME Londoners are over-represented in the growing private rented sector. As stated in the Mayor’s London Housing Strategy Impact Assessment, older and disabled people are more likely to struggle with accommodation that is neither accessible nor adapted to particular issues. Overcrowding is severe in London, disproportionately affecting those on low incomes – specifically those with certain protected characteristics. Increasing the supply of housing, and in particular affordable housing will help to achieve positive impacts in line with the ‘three needs’.

4.1 If additional expenditure is not approved, GLAP will not be able to obtain expert external advice and associated professional indemnities in its dealings under the development agreement. Having external legal and design advice will ensure GLAP’s interests in relation to the site are protected and a high quality scheme is delivered.

Links to Mayoral strategies
4.2 The decision links to Mayoral strategies and priorities as follows:
• Draft New London Plan (Policy H1) promotes the increase of supply of housing in general and affordable housing. The site will make a significant contribution to both LB Barking & Dagenham’s and LB Havering’s housing targets and meeting their affordable housing needs; and
• Draft New London Plan (Policy H5) outlines a strategic target for 50% of all new homes delivered across London to be affordable and specifically on public sector land. The site will deliver 50% affordable housing.

Conflicts of interest
4.3 There are no known conflicts of interest to note for any of those involved in the drafting or clearance of this decision.

5.1 The decision seeks approval for expenditure of up to £250,000 over the next five financial years of this project.

5.2 The expenditure will come from the existing Land and Property revenue budget. The allocated budget for Beam Park over the next five financial years (20/21, 21/22, 22/23, 23/24 and 25/26) totals £250,000.

5.3 Indicatively, the expenditure will be spent as follows:

5.4 The approved lifetime expenditure for Beam Park is £860,000. Actual spend to date is £829,449.

6.1 Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a general power to do anything which he considers will further one or more of the principal purposes of the GLA as set out in section 30(2) which are:
• Promoting economic development and wealth creation in Greater London;
• Promoting social development in Greater London; and
• Promoting the improvement of the environment in Greater London.

6.2 Formulating the proposals in respect of which a decision is sought, officers confirm they have complied with the GLA’s related statutory duties to:
• Pay due regard to the principle that there should be equality of opportunity for all people;
• Consider how the proposals will promote the improvement of health of persons in Greater London, promote the reduction of health inequalities between persons living in Greater London, contribute towards the achievement of sustainable development in the United Kingdom; and contribute towards the mitigation of or adaptation to climate change in the United Kingdom; and
• Consult with appropriate bodies.

6.3 Sections 1 and 2 of this decision form indicate that the Mayor has the power to agree to the decision set out above.

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