The amount a developer will pay for land for Waltham Forest’s largest ever housing scheme could be slashed by £6.9 million, a new report reveals.
On April 27, the council’s leadership will meet in private to discuss whether to finally agree the new deal with Taylor Wimpey or abandon the ‘Coronation Square’ project.
The £190 million regeneration project, on the Score Centre site in Leyton, will see 750 new homes built and was granted planning permission in April last year.
In August, Taylor Wimpey warned that “unforeseen costs” could “significantly” delay work, meant to start early this month, unless the council agreed to renegotiate.
On January 14, the cabinet therefore agreed to a discount and to purchase all 1,762sq m of commercial space being built to help “de-risk" the scheme for Taylor Wimpey, refusing to reveal the financial cost of either.
A report prepared for next week’s meeting reveals that the reduction plus the price of the commercial space will lower the land cost from more than £30 million to around £23.5 million.
Read more: Waltham Forest Council defends giving discount to developer
The report notes that, though the council could decide not to agree the renegotiated terms, this would mean “the Coronation Square development would not be delivered”.
It adds: “There is clear ambition for the council to deliver this key strategic regeneration scheme in the borough.
“By refusing to agree (the new deal), the significant social, economic and environmental benefits including new homes… would not be delivered.”
The project will include five flat blocks, the tallest 18 storeys; a new GP, leisure centre, nursery and civic square; commercial spaces and a heating network for the surrounding area.
Half of the 750 homes will be affordable, although Cllr Marie Pye (Lab, Leytonstone), who sits on the planning committee, noted in March last year that the majority of these will be more expensive “shared ownership” homes, rather than low-cost rent.
Other changes were made to the deal with Taylor Wimpey, including removing its ability to “trigger a future review of the scheme viability” if expected profits decrease again.
If the developer seeks to add more homes to the scheme at a later date, the council will charge £179,000 for every additional home.
Construction is expected to start on the site during May and to finish by 2027.
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