Aussie Corporation Lendlease set to take over Haringey's public land in 20 year deal

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Permalink Reply by Chris Setz on October 28, 2016 at 14:35

Billy we're not understanding one another. Your replies only contain criticism and general statements of broad fact. I am after specifics.

The analysis is 'simple' because, as you state, that's what Cllrs do - they pass broad 'indications' to officers, who derive detail. I'm trying to understand their logic, they way they operate.  As you know, Cllrs are normally untrained in the area they are responsible for - no need of particular expertise in anything, they rely on officers for that. You didn't mention that they're also whipped, so it's possible they all speak with one voice, that of the leader.

There is no doubt that LBH has lots of experience with developers but surely, if the borough is in housing crisis, that points to a need for improvement, doesn't it? I think you are saying they know what they're doing and it's not for simple-minded people like me to poke my nose where I'm not wanted.  Now where have I heard that before?

Why does the HTH car park profit seem so high?

Why has the Council turned down a non-profit approach? 

I have been involved with HTH for a while and attended a public meeting conducted by Catherine West inside it a fortnight ago.

She made a number of the points I echoed in my comments - that's where I got the £100k average per dwelling figure from.

I think there ought to be an answer to the questions:

a) Roughly how much profit is the developer likely to make on those 119 luxury flats?

b) Would a non-profit Housing Association be able to do better, provide more 'affordable' housing and allow the Council an income stream from future rentals?

Oh and while we're at it, I have a simple plan that shows HTH as viable and fully refurbed without the need of any developers - how can I prove that my plan would work?

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Permalink Reply by Chris Setz on October 28, 2016 at 17:34

This is hard work whilst you're stuck in haughty mode Billy - hope it's worth it!  

I'm specifically talking about HTH - 'luxury flats' are available here.

The HTH project went out to EU tender (item 13) last year. 

I object to the principle of building flats in an area deprived of metropolitan open space. Like our MP I want 50% affordable and it should not be developed by a for-profit. 

LBH chose their preferred bidder on 18th Oct. All the numbers are 'commercially confidential' so that's why I wonder how to find out how much profit the bidder is likely to make.  'Affordable' developments are limited to 20% profit and this one has 3% affordable but I'd still like to be able to estimate the numbers. The 3% is around the corner so if they hived them off into 100% affordable and 0% affordable, they could remove the profits cap.

It might all be subject to a planning process so I was hoping to point to a non-profit who would do it noticeably better for the Council than a for-profit.

LBH just gave £6.8m to refurb the Victorian Theatre at Ally Pally, the Heritage Lottery Fund added £18.8m and they expect £1m from public subscription.

I think that same sort of formula can work at HTH - four years ago, the HLF gave the last failed bidder £480k 'development' money to apply for £4m of grant for the HTH refurb. 

HTH is thriving as it is, the refurb work is not urgent.  I think it can be leased by a charity and that charity could attract the HLF grant and fundraise, and take a small slice of the HTH profits (it currently houses 70+ small business tenants).

It's running costs LBH say are £170k/yr, including £30k 'maintenance' and a further £190k/yr rates. LBH can waive 90% of the rates for a charity.

In the past, it has paid its way as a film location and could get more income that way if it was more heavily promoted. Last week a film crew were here - they don't mind too much if most of it is occupied as the bits they like are the public parts which are flexible.

Here's Bryan Cranston shooting two films in HTH last year:

It gets £90k/yr from a mobile phone mast in  the tower and a second application for one has been made. If a telco takes up the option for the 2nd mast there'd be more profit to finance a long-term loan against future profits to do more of the refurb with the help of grants.  Even if the refurb took decades (it really is a solid building, lot of marble) it wouldn't matter much - it was 'dark' between 2001-14. Celebs and philanthropists are sometimes attracted by Arts Centres - e.g. the RoundHouse. 

That's an outline - what tests can I apply to show it's a viable alternative?

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Permalink Reply by Chris Setz on October 28, 2016 at 22:45

Whatever I write you seem to want to misjudge it - shame, thought you could be of help.

We know there are non-profit developers (housing associations).

We know a charity can run HTH and can before get the rates discount that would help profitability.

The Council takes 'punts' all the time - it's almost all they can do in this uncertain, complex world.  What I'm looking for is what will make my plans credible in their eyes.  You'd have thought there was some standard but the last time there was a fully costed business plan for HTH (looked convincing to me) they sidelined it, leading to over a decade of 'dark'.

I suppose the only way forward is to try to create a demand for a re-think, then hope they adopt some of the ideas floating around. Sigh,

Shame there can't be reasoned, temperate public debate about this sort of stuff.

Permalink Reply by Nick on October 28, 2016 at 21:22

Im going to stay out of the gun slinging but i think Chris is right in terms of the horrendous deal on affordable housing the public gets when it goes into bed with developers. This is largely a result of viability assessments, which mean the developer can sneak their way out of the affordable housing by 'proving' the cost is too great. I'm not sure if it matters whether Chris illustrations were accurate to the pound and do think that the issues he is describing are well documented. I thought it would be intersting to share a link to a couple of recent articles that discusses the issue, give some examples, and talk through the Major's new strategy to try and resolve it (longer term)
https://www.theguardian.com/cities/2015/jun/25/london-developers-vi...

https://www.google.co.uk/amp/s/amp.theguardian.com/uk-news/davehill...

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Permalink Reply by Chris Setz on October 28, 2016 at 22:50

Thanks, Nick - I read those articles when they first came out too :)

I remember feeling bad reading about what happened in Southwark - amazing.  The Battle For Waterloo is a sad reflection on us all.

I suppose it comes down to principles and I thought it was likely that, LBH having been ion power here for over 50 years, some Labour principles would have been laid down here but I can't find them.

They have, for instance, a community strategy 'people at the heart of change' - ha!

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