Presentation to External Auditor 19/04/2017

Transformative partnerships

North Tottenham Regeneration Area

Haringey Development Vehicle

• Northumberland Park 5,000 new homes (40% affordable)

• Further 1,400 homes across category 1 sites

• A new all-through academy school for 2,300+ students and a new Health Centre

• New centre for Wood Green including residential, commercial and Council accommodation

• Management and enhancement of existing £45 million Council commercial property portfolio with further commercial development in the borough

• Investment in jobs/ skills/ Social Impact Fund

• Creation of up to £11m pa in new Council tax and business rates receipts

• Council receives £275m development returns

• 2500 new homes

• A new London Overground station at

White Hart Lane

• A new public square surrounded by

new commercial and community uses

that will be at the heart of the new

neighbourhood, linked to THFC

• A new, modern library and learning

centre

• Redevelopment from 2019

High Road West

- Planning approval Dec 2015 (LBH)

& March 2016 (GLA) for 61,000

capacity stadium; NFL and

enhanced events offer; 585 homes;

major new commercial space

(hotel, museum, extreme sports)

and public realm

- New stadium to be open for

2018/19 season

THFC

HDV Objectives (Summary)

• To deliver growth

• To achieve and retain a long–term stake and control in

development of Council’s land

• In partnership with private sector, catalyse delivery of

challenging schemes

• To achieve estate renewal by intensification of land use

and establishment of mixed tenures

• To secure wider social and economic benefits

• To incorporate land belonging to other stakeholders into

developments

HDV Sites

• Sites are across the borough Category 1 – Initial Sites • Northumberland Park • Wood Green

• Civic Centre • Station Road Buildings • Library Site

• Cranwood Care Home • Commercial Portfolio • Category 2 (Listed in Cabinet Report) and Category 3 (not

specified) are in the scope of procurement and may follow

HDV – Decisions

• Cabinet February 2015 – authorised soft market

testing

• Cabinet November 2015 - authorised launch of

procurement and delegated authority on

documentation to Director/Leader

• Cabinet February 2017 - agreed to appoint

Lendlease as Preferred Bidder

• Cabinet March 2017 – following call in confirmed

decision

HDV - Future decisions

• Cabinet July 2017 - recommendation to establish HDV

and agree initial Business Plans

•Strategic Business Plan

•Category 1 sites

•Socio-Economic

•Commercial Portfolio

• Further decisions will be required:

• to approve application for disposal of housing land

• to add further sites

HDV Procurement

• Soft market testing and feasibility studies pre procurement • Prior Indicative Notice - November 2015 • OJEU / PQQ January 2016 - 13 bidders • Invitation to Submit Outline Solutions (ISOS) March 2016 – 6 bidders • Invitation to Submit Detailed Solutions (ISDS) July 2016 – 3 bidders • Invitation to Submit Final Tender (ISFT) December 2016 – 3 bidders • Currently optimising and specifying detail in accordance with regulations

HDV Structure

• Limited Liability Partnership

• 50:50 vehicle

• Council Land matched by Lend Lease cash / equity

• Loan note structure

• Subsidiary vehicles for Development/ Investment

HDV Governance

• Board 3 members each

•Cllr Weston

•Strategic Director of Regeneration Planning

and Development – Lyn Garner

•Director of Transformation and Resources-

Richard Grice

• Collective vote

• Rotating chair (no casting vote)

• Same Board Members on subsidiary Boards

• Suite of legal documents inter alia

Members Agreement

Development Framework Agreement

Development Management Agreement

Asset Management Agreement

HDV Protections

• Dispute resolution

• Deadlock

• Default

• Winding up

• Reputation

HDV - Decision Making Structure

Members (Council and private partner)

Haringey Development Vehicle

Council only

Develops new scheme business plan (or proposes changes)

Approve scheme business plan, including ‘conditions

precedent’

Prepares for development (planning permission, funding

for scheme etc)

(Approves any CPOs, outcome of consultation etc as required)

Transfers land to HDV (compulsory if conditions are

met)

Delivers scheme, including procurement

Receive & invest dividends

• C.11 hectare development site

• One-third in LBH ownership , the Love Lane

housing estate (297 properties):

- 212 council tenancies

- 85 leaseholders

• Two thirds in third party land ownership, includes

business/Industrial Estates.

• THFC own 14% of the land

• Adjacent to £750m THFC development

• £62m of Housing Zone funding secured

High Road West Site Context

• Comprehensive regeneration of the area

• Regeneration of the Love Lane Estate and

delivery of a mix of tenures

• A new economically successful local centre

• Maximise the social and economic benefits

for local people and deliver high quality

community facilities

• Significant increase the amount and quality

of open space

• High quality design

HRW Objectives

HRW Deliverables

• A minimum of 1,400 new high quality

homes to (include 145 social rent

homes and 46 shared equity homes)

• A minimum of 8,800sqm of

commercial space

• A new 1,400sqm library and learning

centre

• Improvements to the landscape and

public realm, including a major new

link between an enhanced White Hart

Lane Station and THFC

HRW Delivery Structure

• OJEU procurement underway to select a development partner – due to

conclude in September 2017

• Partnering by way of Development Agreement

• Steering Group will be established to oversee project

• Development conditional on site wide and phased conditions

• Council assembles and transfers land on a phased basis (250 year lease)

• Delivery partner develops out, with affordable & community infrastructure

delivered to agreed specification

Nov 2013- Cabinet - Received feedback, gave authority to develop comprehensive

masterplan, continue ongoing engagement with the community

July 2014 – Cabinet – Delegated Authority report to Director of Regen. and COO to agree

masterplan for consultation, agree s105 material and initiate s105

consultation and initiate the rehousing process for tenants living in

phase 1

Dec 2014- Cabinet- Received consultation feedback, agreed the masterplan, agreed

resident guides and Resident Charter, approved demolition of the

estate

Dec 2015- Cabinet- Agreed the HRW delivery and procurement objectives, noted the

business case setting out preferred delivery route, agreed to

commence OJEU procurement process , DA to Director of Regen to

agree material and deselect Bidders.

Sept 2016- Cabinet- Agreed the Overarching Borough Agreement with GLA for the

Housing Zone funding

HRW key decisions made

• Selection of a development partner - Cabinet September 2017

• Best consideration sign off – Cabinet September 2017

• Delegated Authority to Director of Regen and COO to enter into Development

Agreement once finalised- Cabinet September 2017

• Ownership of the replacement homes - Cabinet September 2017

• Permission to seek Secretary of State consent to dispose of, and

appropriate, Housing Land - Full Council November 2017

• Resolution to make a CPO (if required)- 2018

HRW further decisions for approval

HRW Steering Group

• The Council and partner will have three representative on the Steering Group.

• The Council representatives will include a regeneration and finance lead.

• The Steering Group will:

- agree, adopt, review and update the Strategies

- Review the progress of the development and operation of the DA

- Review the Financial Model and Phase Appraisals

- Review progress towards satisfying the Phase 1 Conditions

- Approve the CPO budget

- Agree milestones for the Milestone Condition applicable to Subsequent Phases

• The Council will have discretion to make the following decisions outside of the Steering Group:

- Land payment

- Planning applications before being submitted to Planning Authority

•If decisions can not be made at the Steering Group, matters will be escalated to Senior Officers in

each organisations. If a decision is still not made, some matters can be determined by an

independent expert.

HRW Governance

North Tottenham Internal Board

(Chair: Director of Regeneration)

Tottenham Programme

Delivery Board ( Chair: Strategic

Director of Regeneration,

Planning & Development)

Tottenham Joint Strategic Forum

(Chair: LBH & GLA)

Northumberland Park Project Board

(Ward Cllrs) (monthly)

Cabinet Member one-to-one (fortnightly)

• HRW Scheme is part of the

Tottenham Regeneration

Programme governance

• Reports to North Tottenham

Internal Board, which has legal,

finance, procurement

representatives

•Strategic Directors meetings

between dialogue meetings

• Procurement Board

THFC

• In February 2012, the Council’s Cabinet agreed a £27m funding package to support

regeneration in North Tottenham. It was agreed that THFC would be given:

• £5m towards the “podium” – a piece of public realm surrounding the stadium used

as community and event space

• £3m towards heritage improvements - £500k has been utilised already as match

funding for heritage improvements in the North Tottenham area.

•Whilst this funding has been agreed, it is subject to grant agreements being agreed with

THFC. A Cabinet Member decision (12/04/2017) approved the development of these grant

agreements and delegated authority to Director of Regeneration (in consultation with Strat.

Dir. Of RPD and COO) to agree these with THFC.

•Over the past two years, THFC have revised their stadium design, have secured a deal

with NFL

•THFC are now seeking a £30.5m contribution towards the construction of the podium.

THFC

• The Council has worked with the GLA to identify if public funding can be

identified to support THFC

• The GLA have agreed to offer the Council a low cost borrowing rate to borrow

£30.5m through the HRW Housing Zone arrangements (2.2% fixed rate for 12

years)

• At the same time, the GLA have agreed that all repayable grant within the High

Road West Housing Zone funding allocation is now non-repayable. This

leaves a surplus of £23m within the HRW cashflow, which could be utilised

(subject to Cabinet approval) to support the delivery of the podium around the

THFC scheme

• The Council and the GLA have informed THFC, that any public sector funding

contribution towards the podium will be conditional on them selling their land assets in

HRW to the Council

THFC Governance

Joint Operational Board

(Chair: Head of Area Regeneration (North Tottenham),

Monthly)

North Tottenham Internal Board

(Chair: Director of Regeneration,

Monthly)

North Tottenham Partnership

Principals Board (Chair: CEO,

Monthly)