Aspire Report (Redacted)

LILDING A
SI
•, HARROW
HARROW REGENERATION PROGRAMME

STATUS REPORT
EXECUTIVE SUMMARY
Prepared by:
Version: Final Report Executive Summary
Issue date: November 2018

rn HARROW REGENERATION PROGRAMME
HARROW
% STATUS REPORT
EXECUTIVE SUMMARY
CO NT E NTS AGE
10 Precrs of E<ecutive Surrimary
Part One
11 The Regeneration Strategy and Ob ect yes 2
12 Summary of Individual Projects and Programmes 3
13 Programme Level Key Issues 6
14. Detailed Findings and Key V ab ty Messages S
1.5 Summary of Areas for Improvement 22
1.6. Summary of the Councils Governance 26
1 7 Joint Venture Development F nancra Mode Assumptions 32
Part Two
2.1 Project and Programme Financ a Mode
Pan Three
31 Conc us on 36
3.2 Next steps and nte in St ucture .38
Appendix
Br ef for the Harrow Regenerat on Programme Status Report 40
Note
has prepared th s exec,.,tve summary of the report prepared for the C ient team cvthin Harrow Council
and worked n collaborat on vd th Harrow Council and their aepointed consultants (Programme
Cost and Project Management cosultants), (Property Agents and Valuers) and
(Lega advisors
The repel conta us informat on obtained or derived from a variety of sources within Harrow Council and their
appointed consu tants and has been relied upon and drawn together in a Final Siatus Report by
have been respons’ble for developing and managing the consuitants’ briefs and we have worked closely
with them incorporating their findings into our report. Tne report includes the necessary range of professional advice
that we wou d expect to see n order for Harrow Council to be able to rely upon the repon in determining its future
Regenerat on Strategy for the named sites whilst we have not undertaken additional inepnndent venfication of the
profess oia adv ce, we have nn reason to doubt its accuracy
Where applicable, financial assumptions have been agreed between and the Council Client’s
representalves and have been staled in this report
The commercial model has been provided by Harrow Council and further developed by The commercial
modei remarns the Council’s model and intellectual property and does not form a formal valuation of the pro3ects Or
sites
l-ARROW REGENERATION PROGRAMME
HARROW STATUS REPORT
EXECUTIVE SUMMARY
1. PRECIS OF EXECUTIVE SUMMARY
Vhe Courci commissioned to use their Commercia Deveico’’ent exoerie”ce to provide

—avow CouncI wcn a Regeneration °rograr’ne Status Report This reaort irciuces an ene’ o r:ne
existing Regeneration Programme’ to date reviewing key milestones. It icuks forward dentifyinc the next
key stages of design and development, and includes details of the proposed phasing and sequencing for
each individual project and transfers each, of the project programmes into a Master Programme
The prooosed regenerat 01 prog-amme is ambitious and with s.c’r ambit’cr’ cou d p’ov;de cnaVenges to
:ne most exoehencea p’ooert co—uany lw key sites of the narrow Ne Civ;c, °cets’ Corner (phase 1
& 2) arid Byron Quarter compose woe eee”erstion amh::ior,s across cifferent occupatronal needs and
tenures As such, it cannot be over emphasised how this scale of proposed development,
• requires focused leadership experienced in delivery,

• is undewinned by commerci& rigour at each and every stage, and
• is de iveTd y an ‘ntegrated epproacl to cevelcpnerL pocsvernenr design, construction anc
ooeraticn
The magnitude of this undertaking should not be underestimated The drivers for such ambition are to
produce the targeted financial out turns and revenue streams to meet the cost of the new Civic Centre
and leisure facilities, together with the imoortance of the inter-dependency of the schemes in relation to
she orog’amme. des’gn. cost and whilst at all times having regards to Harrow Councils
Dorrowing
The report includes the rationale for the interdependencies across the projects ano financiai assumptions
at key milestones to establish the risk and critical activities
Based on experience, supported by the Harrow Councils appointed consultants, the report
sets ou: tne va’:Ous develoomenr opt ons for the Councd this is folio’.ved by rev;ew ng she management
aporoach adopted te date and governance arrangements required between the various parties based
upo’ the advice of the apoo.n:ed lavi’ers setting out the roles and respos’b Ities cetween each party
The final Regeneration Programme Status Report outlines the Councils key objectives and evaluates the
Regeneration Programme’s success to date against the Councils objectives It identifies areas of
improvement, and sets out options for project delivery based on an assessment ol the current market by
the CouncI s aopointed property consultants.
Significant wo has been undertaken and the report identifies tee next key stages that br the Counci to
embark upon to deliver Ihe key skills and resources required and ‘interim team prqposed to enable the
I
Council to successfully deliver its objectives are then identified.
I
The inter-relationship between good design and financial acumen is always a d ft cut balance to strike
fo: any pronerty owner, and tnis has been compounced by the eqi:emen: to do ver bs. dngs and
places to which Harrow asoire and meet their commercal returns
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HARROW
STATUS REPORT
EXECUTIVE SUMMARY
PART ONE
1,1 THE REGENERATION STRATEGY & OBJECTIVES
The Regeneration Strategy was approved for consultation on 14 December 2014 and has been updated
post 2014. The Regeneration Objectives were identified as part of a September 201S Cabinet Report as
follows
a) ui’ding a Beoer Harrow together to, tocay. ard for otu’e oenea:ior.s Add-essirg housing
neec. par.icu ar vo affordaco housing.
bi Th Counc t developing :s own lane to r.eet cornmur:y reeds anc:o maKe sefle use o its
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own assets
c,) A no.; nrt alive for he Counc I to build homes for p-vale rent (in addition to social
rent/affordable housing) There is a programme to develop about 600 new private rented homes
on Counc lard. lo- ma:<e: reflt
a) Renewing civic ane commjn facihties reel ng nf-ast-uctuie needs two new schools, a new
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Cer.tra Licrarv. a e. (mo-c eFicieni and sna let: C,v:c Cent-a and potentrally a “ew or
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improved Leisure Certre comdex

e) Creating quahy pces —bo:n through a focus on qua i’ des an r new developmerl and
through schemes to create new public squares and spaces and to mprove l:ey rinks and routes
(such as Station Road)
F) Getting maximum benefit for the local economy through the creation of new employment
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space and measures to develop local apprenticeshps and training schemes and to build local
supply chains
We would make the following observations on the above
• The objectives require greater definition and prioritisation For example, Building a Better Harrow
needs referencing and the objectives identified,
• In any appraisal of delivery options, the options reed to be assessed against clear objectives
including targeted financial returns
• The Councils powers to deliver the Build to Rent programme is secured on the basis that the BtR
is pal of a wider regeneration programme. The Build to Rent options therefore should be
assessed as part of the wider Regeneration Proiects objectives
I he regeneration objectives will need to be entrenched in future procurement strategy and evaluation
criter a, following interral drscussion ‘v th <cy staKeho ders There is a st-ona case for -efresbing tie
regeneration object yes to ens_re tie Counci’s current picrities e.ate to the ‘inancial viab .:;‘. and
deliverabi ity ci the projects as pa”: of a ‘jider egenerato;. crogta.mme This is captu’ed in this status
repor.
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f. HARROW REGENERATION PROGRAMME
STATUS REPORT
EXECUTIVE SUMMARY
1.2 SUMMARY OF INDIVIDUAL PROJECTS AND PROGRAMMES
The status report comments on the seven regeneravon orojects wb di are at various stages of design
and de.very
• Haslam House
• Vaughan Road
- Waxwell Lane
• bar’ow New Cv c CHNC

• Poets Corner (phase & 2
• Byron Quarter phases 1 & 2 nc pots 1 12 and e sure
SMALL SITES: HASLAM HOUSE, VAUGHAN ROAD & WAXWELL LANE
The optons surround ng the sma er pro ects Has am House, Vaughan Roac and Waxwefl Lane are qute
straightforward to arvcuiate and dentfv act ons to be taken.
HARROW NEW CIVIC (HNC)
Of al the major projects: Harrow New Civ c (HNC) s the most advanced however and
have conciuded that the orig “a programme for the de ivey of the HNC was too amb tous to’ deLver1
and a review of the required funct on needs to be carr ed out to assist in determining the form.
Fol owing advice from the construction programme has been increased from 18 months to 24
months. H!gh level cost benchmarking undertaken by
I
I
(currentiy 37% smaler than exs: ng) and can
the pr nc p e concern s whet’er t s large enough
ccmfortaoy accommodate a Harrow star, p us 200 guests
per day?
The transformation programme and nterna ft out and ayout must be settled before commencement of
ion
procuring the constructon therefore the CouncI wI need to estab sh what the r accommodat
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O B’J (D:NCi A
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
requirements and space plan Further ana ys s : requ red to estab sh whether runn nq cost savnqs can
be achieved (against budget not exist ng Civ c runn ng costs), I
Post the granting of planning consent the frst task we recommend that the Counc undertakes shou d
be a full scheme audit both in. te’ms of des gn and bu d It out and (urn ture costs F and projected
running costs before proceeding w t d rect de very (on the bass of a def ned f xed price desgn and
build contract), as the current costs are and the de very of HNC es at the heart of the
regeneration programme.
POETS’ CORNER PHASE 1
Phase 1 consists of 431 build to rent (BtR) in ts together w th. car park ng and commercia space which
seeks to make a new place in the heart of Harrow. The financial target of net initial yie d has been a
benchmark which Harrow have beefl work’ng to for some t me and has been recent y reva dated as an
appropriate financial metric for any BtR de vered Phase 1 s not fu y designed (ctirrent y at RIBA stage 3).
The current programme would eq.iie Harrow COL n( to comm t to construct on before achev ng 8Oi,
cost certainty and this is consrde’ed to be a H gh r sk strategy
Fuflhei concerns have been raised br the externa consu tant team over whether the Counc have the
internal resources to deliver ci’ca 431 BtR unts cost effect ye y w thout s gn Fcant add tona externa
project management support. In add ton de very of phase 1 requ es the d version of a gas ma
and have concluded that th s d vers on shou d be undertaken as an ear y enabling package to
de-risk the programme (at a cost of (rca and our ev ew has been nconc us ye as to the
impact of the loss of stall narking wh ch cou d sti I be a HR ssue
rhe current financial modelling has concluded that the proposed scheme as designed will not hit the
target net initial yield of set for the delivery of StR Whilst a decision not proceed with direct delivery
of BrR units in phase 1 would have a number of wider impacts the scheme is currently failing to meet the
Councils targeted financial return.
The Council have three principle options for Poets Corner phase 1,
• Option 1 Carry out a review of the planning application to make sure the proposed planning
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application and in particular the design code allows a future JV partner sufficient flexibility to
maximise returns whilst meeting the Council objectives for this important site. At present the
application is a hybrid (outline for entire detailed for phase 1) we believe an outline for the entire
would be more appropriate, post review of planning application and design code, proceed with
planning application in order to ‘bank’ the GLA agreed affordable element quota
• Option 2 Proceed as planned accepting hsk and lower projected net initial yield.
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Option 3 Do not proceed until IV partner is selected If option one is selected, consider making BtR
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(subject to viability) part of phase 2 once a IV partner has enabled the phase 1 site and set the tone.
1 his will, improve the overall cash flow and ease internal resourcing issues.
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EXECUTIVE SUMMARY
POETS CORNER PHASE 2
Poets Corner Phase 2 s an arnb: os scnene comp’ s nç Sit nev, bores I ye ies’ieritar Olvate
courtyards approx mate y 40Cm’ commerc a I oar space a new two form entry primary school, 0 YHA of
pub ‘c realm three pod urn car paks and on Street parking for 240 spaces
Even adopt ng a zero and cost the uirent mode ng nd cares t”at °oet Corner prase 2 does not
nae a poLi. Wb st further va ue erg ree ng of the scheme and the n7oduct on of a ski ed obit
venture partner s key to mprove tie vab ty of phase 2 a funcamenra rev,ey of me cesign of the
res dent’a elements w be required to de:ver an appropr ate f nancia return from this valuable ste ft
cons Ocred that the current plogra’ rr’e is too optmist c that 517 units cou d be sold as quickly as
currenry predcied. • advce on marel rake up evels s that engrhening of the orogramme will be
required to a ign with projected saies rates this however may we increase the bu c costs
Harrow Council has two pr ncrple options to consider in respect of Poets Corner phase 2:
• Option 1 Pause pIano ng applicat on unt’ a IV partner s se ected to re-work the design Consider
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making BiR part of phase 2 once a iv partner has enabled the ste and set the tone this will mprove
the cash fiow and ease nterna resource ssues
• Opton 2 rry
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out a review of te o anning aop’icat on to make sure the oposed p!ann ne
application and n particular the des go code aliows a future iv partner sufficent fiexiblty to
maximise returns wh st meeting the Council objectives for this important site. At present the
application is a hybrid (out ne for entre detailed for phase 1) we bel eve an outline for the entire
would be more aopropr ate Post rev ew proceed to p ann ng n order to ‘bank’ the GLA agreed
afforoab e e ement quota
• n edd ton the Count need to re exam tie wnethei a 2 form pr mary sc”.ool is stili ‘equired as part
of phase 2 wh st we understa”d the number of ch’ dren requ r rg a primacy school places have
been dropp ng n the Bo’oug; n recent years
Ithe Cour.c coic uoes t-at the aoets Corner &te shou 0 be deve ooed thiough a lv, toe scheme wot;o
be deve ooed as a si-ge deve ooment dv ded nra phases ‘etrrc of vacant possession of toe
exist ng Civc Centre wI be cr t Cal to achiev ng the best comrnerc ai outcome
BYRON QUARTER
A ‘arge project compr’s ng 820 now omes across a range of te’ues (market rent p ‘ate sac and
aFordabe) re provsion of the Counc Sony e’sure centie and Bo’- Ha!l, ro--’esident al gounc floor
uses, retention of Skate Park togethei witfl new high quality public ream and landscapng. The
masterplan has been d vded nto two phases:
•Phase 1. P or 1 Comprises 34 BtR ones th s phase fei s to de ver the ta’get of a net iritia
y;elr
• Pot 2 12 and Le sure There s current y a ack of cela nty over the des gn and cu 0 cost of the
ceisure element of the scheme A number of ssues remain outstand ng inc ud ng the leisure centre
specification, management of the esure centre, [
I
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HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Harrow Councii wt have two w tic pe opnons to consider for the Byron Quarter site
Option 1 -Include at development within a iv (possibly the same IV partner as Poets Corner)
consder de’ivering BtR later In the development, not in Phase 1’ Plot 1. Better co-ordination of
development of later phases to tie in with lease oxpazions. Leisure to be provided by direct
development (as o€ HNC) at the end of the programme by the IV partner for a development
management tee.
j1r2As above be:: &so consicer relocating 3t to 2oc-ts’ Corne and
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,4ZTh HARROW REGENERATION PROGRAMME
s ‘,HARROW STAtUS REPORT
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EXECUTIVE SUMMARY
1.3 PROGRAMMME LEVEL KEY ISSUES
Dur nci tn s pe’oc of rev ew and consu:atior. we nave worxec etch Lb ar’ow Counci
Rcgenerat on team and so: out be ow our nt a I rd rgs The ke stues dent I ed are sumnarsed
be ow
Management & Leadership
Tne management ot the egeneration Prograirme has been carrieo cut to a brtac set of obect vet
aweed Dy Cao:net The regerera:ic team concrises c rca 20 staff roles (a smal number are cuieniiy
vacant) beneath the Divisional Director Regeneration Enterprise and P a’ ng and the Head of
Regeneration and Design In order to meet the roles set out by the Counc I there s a mix oF permanent
employed staff agency appointments and consultants
kroLghDut the Tview. it was fo.nd fra: there ac a signiFicant rumba: of permanent and agency staff
cur-ently aoooinied who have skilis that are heavily biased towards mastero ann ng and desrg There s
also a major short’ali of experience and skills V me deveiopmert management ‘ed particu cry n
delivery of built assets and market facing development. The role for producing and maintaning the
commercial appraisals and programme financial model has &so not been adequately resourced with
suitable dedicated senior level experience for programmes of this size and nature
Project initiation.
The overall receneration oojecuves set were not sufficiently acer and were no: weighted or prioritised
This has resulted in a iack of clarity of the objectives for each project F undamentally the balance
helween good design procurement and del very of the wider regeneration objectives (e.g HNC and new
eisure fact es) has not been approp’iate y structured and managed Overall there has been an
nsuff.cent :ocus or, commerc&ity anc viab, ity of the orçec:s. the k.ndinc ‘equirements and thai’
inter depe ndencies.
Programme Implementation:
I was dentified at an early stage of the regeneration programme status review that a robust overali
business plan for the regeneration programme was not n pace In add non summary business cases
were not n o ace for each p’o:ec: arc therefore :he schemes v.ne e rot DC CD pregessed against a
Quarter where a
ciea’Iy defined set of aporoved obec:ves or gu delines (with the except or o Byron
detaled busness case existed but :rco’po’aled a numbe o’ opt ant and was no: financa y robust)
Management of Projects:
The lack of up IC dale and robust I nanc al models for each pro ect has resu ted n decisions on design
procurement anc phas ng of deve opnen: to be taKer, w thout knosv eoge cf :ne f nancia imp icatos
This has resu ted in p’ojects not adecuate y ref ec:ing tne ‘egene’a:ion ob ec:ives n particu ar the
del very ci sufficent fund ng to cover the cast of the HNC and Byron Ic sure e emert
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7 •uDA HARROW REGENERATION PROGRAMME
Y) HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Other project issues
Tne Programme Mnage-nert anooted tas been ce verec :h’ougb a pecemea approach to the
appointment of external nov so’s and tne aop cat on of tie I ccv cc or exame e the nroect ev ews
cwried out cy nave found oaos and they have ra sea concerns on me to ow ng areas
• Robustness of project p-Do am-net
• P ecemea appo ntment of undei thejr scope of serv ces
• OveaI Manaoeme-: and .ecast of Pro ccl Costs
• have Ia sed corce--’s over v:berhei the cx tnc cr0 ec: managers ate capab cot de ‘er nc
Drojecswi.nou S Qfl can: eterna scpcot
-,stonca y there nas no hee a preDer cruera deve ocr.eot proaramme and :neretore poaramrre
ievel v abil sy has 001 been proper ylestea and nierdepenoences were not c ear For example
• The review has ident.f ed a ack of confidence in the correct eve of service charge and maintenance
costs to be dedLicted from the gross BtR enta
• have carried out a hig’ eve revew wh ch has od care :at a deduction of c rca to for
service charge and maintenance s app cab e on a pro ect by proect bass
• Detailed analysis of maintenance and serv ce charge costs s requred from a spec a st consu tant for
the BIR element if they are to be de vered
• Sinking fund deductions from BtR based on adv ce however gong lonvard spec’a st advice
should be sought from an externa BtR expert
• build Cost Inhabon and loss of cx st ng cat park na revenue s he’d at programme eve there
insufficient visibility of the financ a rnpacr on the v ablity at uro ect eve
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/‘ t\ HARROW REGENERATION PROGRAMME
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
1.4 DETAILED FINDINGS AND KEY VIABILITY MESSAGES OF INDIVIDUAL PROJECTS
The regeneiat on programme was ambtous and heavIy focussed on direct deivery with the intention
that at the end of the programme Har’ow Concl wou c be n recent of a -cv: Cv c Certre and eisue
(ac I es fo n cost and wou d aci eve best va ue for a tne s tes t’ey ‘ave deve oped, We su-ornarise
beow :ne nd vdja ore ec oen cv: ma n sses ontons and key v ab ty messages
HASLAM HOUSE (9 OPEN MARKET RESIDENTIAL UNITS)
Overview
Th s a sma project of 9 houses al desqned for sa e in the open market the potential upside/downsides
for Harrow are limited.
Dptions
Option 2- proceed with Direct Dehvery (Design and Build procurement

As this would be one of the regeneration teams first direct de very projects it could be
considered prudent to seek to mihgate the risks to the Council
Page 9 Di 4?
STATUS REPORT
EXECUTIVE SUMMARY
Option 3—sew with the benefit of p]anning consent
Key Via’aI ty Messages
The toIio’; rg has been exiracte from tie curent Harrow Council Fnanc!a mode oy with tre
assistance ci• and oased on the nforr.at on c-ovided oy the ‘eger.€ratior team,
• iota: Jeve!cpnert Costs

• Sa es Revenuel
• Pout 31 ossl
• Comments
• Deive’y is cur-en: direct deli-cry under a traci:icnai cortact
• Acnieves Ret1rr. on cost
• Some concerns over Linresolved site related issues
Actions
Seek a Design and Build fixed price tram pre!ei red contractor to derisk the project
¼iternativeiy sell in open market
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STATUS REPORT
EXECUTIVE SUMMARY
VAUGHAN ROAD (33 BUILD TO RENT UNITS, 3 AFFORDABLE HOUSING INTERMEDIATE)
Overview
I h s s a small res dent a scheme on a ght urban sire des oned to de ver 33 BtR units with 3 atforciabie
hous ng units. The three un’ts des gned to be whee cha r access be are on the upper floors, this has
resu ted n an additona ft berg provided The scheme aso incorporates 2 commercia units at ground
Man ssues:
• Expersve scheme w h re:a I commun ty space or. grounc fioo’ (I nle commercial demand)
• Wheechair access ole jr ts or upoer floors (w than add t oral Irft)
does not reflect difficulty of developing next to the raiway line and a mao
have iccommended a lonqer p-oqranme
Scheme with current proposed mix of uses and design rs not commercially viable
Options
Dot-on 1- proceed with Dvect Delivery (Desgn and Build procurement)

•
•The cu-rent modelling is oase on lie ass.rp:io-’ thaI Inc scere s a Du Id to Went pcdLicl
with the Council purchasing the asset once complete through Conc. urt Assets LLP for the cost
of construction. The scheme target rate of return is a net nit a ye d of [
T achieve the reoured target net initial yield the p’oer would need to aenerale
an additionar cap:talised evenue at This s not an acievao e asp’ation based on t5’e
currert des.gn a—d the associated buid costs. Shoj d Ha’ow dcc oe the net n tia! e!d
represents an acceptao!e market rate they could aecide to proceed with direct de very however
some construction risk would st II lie with Harrow Council.
• Option 2- sell w;th the benefit ofpanning consent (for BtR;

he site could be marketed with the oenefit of te existing otanning ard sod to a ceve ooer
• Option 3- redesign and vary the existing planning direct delivery or se n open market
Subject to the approval of the planning authority the project’s cost couid be reduced by
redesigning Me out-ding. n particu!w to remove ye com-nerc.a e emen:s a”d reic-cate
the whe&cba r access ble urts to the groufld floor, ‘ii S may be suff c err to mprove the viabi ry
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STATUS REPORT
EXECUTIVE SUMMARY
to justify direct delivery of the project In addition, consideration could be given to seeking to
convert the proposed use of the flats from BtR to Open Market units with an appropriate
affordable housing allowance, subject again to the planning authorities’ approval
Subject to changes being made to the design and revising lhe planning use as an alternative to
direct delivery the ste could be offered for sale in the open market. It should be noted that a
purchaser would have the right to either implement the consent or seek to further vary the
consent and design to enhance the profit margin. By selling the land harrow Council will lose
cont’ol over the delivery ci the new housing and their aspirations for StR
• have confirmed that in their opinion if the and was sold in the open market with the benefit
ci oianninQ consent fo ppen maket resrdential unts I
•
I
me Counci’ couid seek 10 protect themselves r101 urdeisellinn the lard by includ ng basc
overageprov:sions in the sale and ourchase agreement.
I Tem are reputationa: :ssues for the Council i not de.:ver.ng tne 3tR sciere tat
has beer discussed at ‘ereth vi tb ‘ocal res dents
Key V ablity Messages
The following has been extracted from the current Harrow Council financial model by wth the
assistance of• and based on the information provided by the regeneration team.
• iota de’eoomert
• Saies Revenue.
• Prof,z or os
Ccrrmerts,’ssues
• Delivery is currently drect de very urde a des gn anc o. c cont-act to ow ng two stage tende
iron:ractor is in regotiations IcI.o; rig stage ‘eturr,t
• Achieves net intia. e!d against targel of net ni:ial yielc
• Ccrent scner.e uncrotao!e
• Excensive oes:gr
• Very d ‘ficu!t to bui d
• inefficient cuilding (extra lift core)
• Commercial element not commercially viable.
• Actions,
• Consider amending planning to open market residential with, appropriate Affordable Housing
• Seek to sell the land with appropriate restrictions on land use and anti-embarrassment clauses
assessment is a commercial open market residential scheme would generate a land value of
less spend to date of (assumes total write off of spend to date which is unlikely)
producing a net profit.
Page 17 ni 41
EXECUTIVE SUMMARY
WAXWELL LANE (20 OPEN MARKET UNITS, 4 AFFORDABLE HOUSING UNITS)
Oven ew
The current scheme of 20 open market units and 4 affordable housing units located on a Council owned
and run car park has been secured through lengthy negotiations with the planners and vocal local
resident groups
Main issues
Dptons.
Opt:on proceed w;tn drec: delve5’ (Design ard Build contract)

-
deivery orojects. it s intenced to

As this woud be one o’ the reDenerazion tears firs: direct
celver the scheme under a cesign and buid contract This would nave the benefit of transferring
the design and construction risks to the contractor The contractor will normally increase their
price to reflect the fact they accepting a higher risk profile as a consequence some or all of the
contingency held by Harrow Council ‘i11 effectively be transferred to the contractor The benefit
is that the croiected net profit is more assired ad tne cons:rction Dice is fiyed There are
howeve’ a’e a numbe, issues that need to be resolved before a building cont’ac: can be let
Prices from the contractor have not yet been secured ano :erefo’e the rnooe!lng is based on
cost plan
• Option 2- sell land w th benef t of plann ng consent

The s;te could be marketed wfr me benef.t of me cx soic p ann rg coflsent and sod to a
develope’. The deve!oper woid have rigtnt to ether implement the ex st ng consent or seek to
vary the consent and de5ign to enhance p.’oiit margin By seWing the a’ d Harrow Counc w;l
lose control over the delivery of the new housing. The potential cap ta receipt will come at the
date the land sale completes rather once the new houses are built and so d have confirmed
that in their opinion that I the land was sold n the open market wth the benefit of the exist ng
planning consent (with all outstanding issues fully resolved) that t should at’act a vace of
Imis
represents a capita receipt which is I
The Counci can aso seek to protect themse yes from underselling the
land by nclud ng has c overage provisions in the sale and purchase agreement. Alternatve y, the
developer could be placed under a positive obligat on in the sale and purchase agreement to
only eel ver the consented sc-crc
‘he’e s a potent a internal accounting ‘lab I ty i the lard is so d n open market w th cost
incurreo to care being treated as reve.nc.e no: cap Ia!
• The above opt ons are not mutua y excLtsve as the and cou d be offered n the market at the
same time as negotiations with a contractor are undertaken to procure a fixed price des gn and
build contract. This would allow the Council the opportunity to make an nformed dec sion on
whetner to d rectiy ocliver o’ se I once offers had oeen ‘ccc ved for ‘c ste. There a’e
Page 13of47
y)HARROW
STATUS REPORT
EXECUTIVE SUMMARY
reputational issues for the Council in not be ver rig the scheme that have been discussed at
length with local residents
Key Viab I ty Messages
The fo ow rg has been extracted from the current Harrow Council financial model by with the
ass stance and based on the information prov ded by the regeneration team:
Comments/issues
• De very is currenty d rect delivery under a design and build contract following 2 stage tender
• Achieves I Return on cost
• Actions
Proceed with development on a firm design and build price as long as acceptable financial
metrics still exists
Afternatively sell in OM •
have assessed the land value at
GREENHILL WAY
Overview
Greenhill Way is a Council owned and ‘un car park that provides 274 surface car parkng spaces
immediately behind Debenhams. The site has considerable potential for use as a mixed use scheme
however there s no c ear development brief for the site The most viable uses are residential: hotel,
student accommodation with limited ground floor parking and small retail units to the street frontages.
Main issues
relates to a scheme that has not been designed and properly

costed and therefore there is little certainty that an acceptable scheme is capable of
delivering this capital value
of clarity over Councils preferred uses
• Requirement to re-provide most of 274 surface car spaces adversely impacts on the vab ly
of any development
•Caprtal receipt could be
Page 14 of 47
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Options
Opt on 1 preoare a dave op-nent b ci arc enter n:c• a dave ooment agreement w th a
ceve ope’
The Cout reeds to set c ear we gb:ec c-ncr a ‘or the s tes dave cpme-i oelore a ce-c Opntert
brief can be prepared Once the b’ ef has been agreed by the Counc and the p ann ng
department an assessment can be made to coni rm that re b ef s commercia y viable and
whether a deve opment panne s’ou d be procured under a dave opment agreement. To inform
the deve opmenl br ef t s ecommend a further car park ng survey s undertaken to assess the
amount of car oar< nq iequ red
F
• The Counc w be abe to pace restr ct on any deve opme; agreemenu but •t wi not be
in
abe to con:ro the de very of te dave opment to c”e same degree as the oropeay was n a
Jo nt Venture JV
Opron2 ncudethesie aN
it s the menton that the Counc se ects at east one N penner to bring forward the Poets’
Corners and Byron Quarter S ret and th s presents an opponir ty to nclude the Greenhill Way
site in one of the JVs. This would allow the IV partners expertse to be ulilised to prepare a
viable scheme which meets she Counciis Dbectives (when fully formed) for this site. A matched
equity IV on :n.s site is lk&y to de.ive higher overall returns to the Counc I tha-’ a development
agreement It wi’l also allow the Council mo’e control over the uses on site ard the timing of
del very.
• Option 3- sell in the open market without planning

• Sell in the open market with vacant possession. The Councl wood be se ug without p ann ng
which would significantly reduce the likely capital receipt I he Counc wou ci aiso lose contro
o’.er P’e content aid tiring of any devefopmen:
<ey Viabi iry Messages
the following has been extracted from the current Harrow Council financ a mode by with the
assistance of• and based on the infoimation provided by the regenerat on team
ota Develooment Costs

Sacs Revenue
Proft or
• Comments! ssues
• No approved scheme
• Modelling based on assumptions on value and costs for a suitab e commerca ead scheme
incorporating existing parking (274 spaces)
Decked parking adversely effects the schemes viability due to hign bu Id costs
• Delvety not yet dec:ded cojtd be and sale development agreer-”t CA w N
• Modeling suggests that a ma:cned equ ty N V;:11 probabty del:ve a higher cap!a rece Pt
• Current scheme delivers unacceptably ow lcd vaLe
Page 15 of 47
cIciow
STATUS REPORT
EXECUTIVE SUMMARY
jjmatked Open Market Land value of site by suggest the land should be worth
Ac:io’s
Dec deon we ghted oh ectves for site
tJndeercarr< ne stud es to assess cLr:en: pwkinc needs
• Cons der prepar ng a development brief for site if sufficient clar ty on acceptabe uses and
density
• Select IV partner for whole site
• Al ow IV partner to adv se on des gn compos non of scheme phas ng and delivery against
we ghed object yes
HARROW NEW CIVIC
Ovens ew
HNC s Iurdamenta to the oeivery ci the regenerat or. nrograome as a allows :ne Poets Cornet site to
be cel vered n fu A s gn I cant delay .n comntericrg ccrstructon for exampie to allow a IV artner tc
be selected to del ver the HNC for a DM fee Therefore, the strategy for the HNC is unique as it seeks to
maintain momentum whilst m nimising the Councils risk of cost overruns and delays HNC
I
benchmarking assessment should be undertaken as part of the scheme audit
considered the most appropriate procurement route in this instance
a more detailed
Direct delivery is
Mar’ issues.
• WIl the cuiloinc rave the requirec v sual impact and regeneiation
• T:ansforma[c’l orogamme arid rterna fit out/layout neec :0 be senlec bece star. on site
• Is it big enough (37% smaller than existing Civic Centre) can it accommodate all staff circa
803 plus 200 guests per day?
• Space planning to prove HNC can accommodate operational requirements not yet
completed (due Sept 18)
• Savings on running costs not yet properly quantified (these would be savings against budget
not existing Civic running costs)
IT cost are uniesolved fi e revenue against caoIalised).
jitlebudet i’- the cost pan •

‘s consrdered by :0 be inadequate (acd tonal
Options
• Option]- proceed with direct delivery through a Design and Build conir act
The HNC building has been designed to RIBA stage 4A and a detailed planning consent has
been approved The current building has an estimated delivery cost (following recent modelling)
of circa against an approved budget of there remains some scope for further
small cost savings 1 here are still a number issues which need resolution to reduce the Council’s
risk profileS
Paqe 16 u’ 47
HARROW
StATUS REPORT
EXECUTIVE SUMMARY
Dpi on 2 pause revew and then proceec wt d rect de very through a Design and Build
coart
Post o ann ng consent step oace and do a fu scheme aud t before oroceeding with Direct
Dc verv. A transforra: or. team reeds to be n a ace and luHy oceratioral befc’c starting
cons:rct on works current y no —iar,o transformat on cad and the nrernal layout for all the
departments have not yet been prepared and gned off by tre departmental heads
The man constra nts to de very are the re ocaton of an e ectr cal substation (which could take 6
months to re ocate and t”e demo ton of the exst ng ca pa k The cost of undertaking these
works as an enab ng coniract are c rca s recommended that as a minimum the
€ ccli ca suL’stat on S (C coated before enter ng rio a 2 stage ogairerent route w th a
contracto.
Key V ao ty Messages
The to owing has been extracted from t’e current Harrow Counci franca noder by with the
assistance of• and based on the ntormat on provrded by the regeneration team
lola Deveiopmens Costs.

• Curet Mode ng
- Dfference
• Common tsi ssues
• Deivery s currentiy direct delivery unoer a desion and build contract fo ow ng two stage tender
• Potential savIngs stifl to be made

• Furniture budget inadequate
• Actia’s
• Cary out enabli’c wcrks (substation reocation demo.it:cr of car par<r
• Era sedesan
• Ensure at: :ransfomator r sks aligned wrn programme
• Selected contractor on design and build contract flowing two stage tender
• Align delivery with development of Poets Corner to ‘educe borrowing
POETS CORNER PHASE 1
Overview
Ihis is a large project for 431 BtR units on the car parks in front of the cx stng Cwc Centre. The
procurement is through direct delivery which would be a very large and comp ax development (or the
regeneration team. The assumption is that the BtR units will be purchased by Concilium Assets LLP as an
investment for the cost of construction and the rental income will produce a net n a yield of
Regard ess of the strategy for delver
on this ste the existrg gas mar needs to be ‘elocated at a cost of cca
Man ssues
• Land value
• Pro:ected Iota cost of de very
Page ‘70147
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
• Planning application is ready to be submitted
• Phase 1 design not fully formed with a proposed start in March 2019 would require Harrow to
commit belore achieving 80% cost certainty
• Corce-os over .ne:he- the Councd nave the .me-na resowces to drectiv deiver chase I
• Coce-ns o’er wnerne- Ha-Cow Counci! can celiver 431 B:R units cost effect vely
• Gas main d ve’son snoulo be jrdeijaen as erab!inn packaae
• Loss o’ staff pakirg could stilr oe a HP issue
Options
• Oot o’ 1 OaLSC canning application

—
•Carry out a revieiv of tie plann.ng applcation ID make sure tie proposed panning appica:.on
and in particular the design code allows a future IV partner sufficient flexibility to maximise
returns whilst meeting the Council objectives for this important site At present the application is
a hybrid (ouuine tci entire detailed for phase 1) we believe an outline for the entire would be
more approprate.
• Option 2 proceed with Direct Delivery (Design and Build contract)

• The current modelling is based on the assumption that the scheme is a build lo rent product
with the Council purchasing the asset once complete through Concilium Assets LLP Icr tie ros’
of construction. The schemes tarjet rate of return is a net initial yieid of
• Harov: could dec cc the net mit al y’elc represeflts an acceptable ma--ce: ate and proceed witr
drec: delivery As this would be :ne regeneration teams first major direct delivery project the
schema would be orocured trirougi 9xed p-ice des gn ard hui d contract Th s has tIe benefit of
transferrg most of the des gn ad constrLction risks to the contractor. Tie contractor wI.
qomall!C’ease their once to refect tne ‘act they acceo:ing a higner risk profile as a
consequence some oral of the conti-’gencv he d Dy the Counci v.ll effectively cc transferrec to
the contractor. The benefit is that the projected net piolit is more assured and the construction
price is relatively fixed
• Option 3- do no: proceed until JV partner is selected

• It is already the intention to deliver the phase 2 of Poets’ Corner through a IV partner,
consideration
should be given to not progressing the delivery of phase 1 until a iv partner is in place to assist
in the viability assessment of the whole site, and the design and procurement strategy I his
would allow the Council the opportunity to consider, having taken advice from the selected iv
partner, whether it would be appropriate to delive phase 1 as open market units to bring in an
earlier capital receipt to help fund HNC and if this is still financially viable, deliver BtR as part of
phase 2. The risk profile of the development would be significantly reduced if the iv partner led
tne development ard proviced its suppiv chair, and expeii;se from the outset Cur-ent modeilinc
has nd catec that if the BIR un:ts were converted to ccci racket sales then a pofit of
could oe achieved
• A decision wil neec be mace on wnethw to sub-nit the pending panning application accepting
that a iv partner might advise that the consent if gianied needs to be significantly revised If it is
Page 160’ 47
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
dec’ded that an ape cat on shou d be submitted 0 ma nta n momentum we would recommend
a rev ew of the app cat on and ces en code s undertaken to ensure there is sulticier.: hex bility
for )V partne’ ID ma<e chances vh ch coo d mprcve I nrc a
a
etrrs st st’l. ach evng the
counc s ob ect yes for th s st€
Key V ab ty Messages
The to’ ow “g has ceen ex1aued from r e current arrow Counc ‘a c a moth cy w Ih Ike
assstancc ol and based on the r-format on prov ded by the regene’ atiun team
• Tota Deve ocenr Costs

• Capta sed Revenue
• Prof: or Loss
• Comments[ssues
De very s currenly drect be very under a des:gn and ho d contract fo ow ng two stage tender
Open market resdent a un ts wou d generate a net croft of on y

I Open markety eds for B:R noduct nths area are be
Concerns over re ocat o’ of staff pa* ng
ev;l
Act ons
• Re ocate gas ma
• Do not subm I p and des gr. code (w thout amendment
ann ng
• SelectN panrei silo

for iThoe
• Allow JV partner to advise on design composition of scheme phasing and delivery against
weighed objectives
• Decide ei:be:
to exc1ude BtR from first phase
nclude o
POETS’ CORNER PHASE 2
Overview
oroect s
Phase 2 of Poets Corner s dependent on the exist’nc Civic Centre relocat on to me HNC i ne
proposed to be submitted for planning shortly in outline form
nybrd app
as pal ofA a cat on o m
venture (JV) partner be selected to bring forward the development of

is to
circa 517 units w th
affordable housing provision.
a tudaren:a reyje,v of the design of the residential e’ements c be eq’d to de very an

appropriate flnancai ‘eturn from this valuable ste
Main issues:
• Land vaiue
total cost o de1ivery r
• Phase 2 design not fufly formed cost savings still being sort but des gn code proposed as
partol plannng consent may restrict potential future flexihlity
Page 19 ci 47
• A HARROW REGENERATION PROGRAMME
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Market take up rates of the units will be slower than mode led, I
J broadly
H 290 car parking spaces. 154 sold 136 let
n Inc w tb Councils AH objectives
Options
Option 1 pause plann ng appl cat on

-
Carry out a review of the panning app cation to make sure the proposed p annng application
and in particular the design code allows a future iv partner sufficient flexb lity to maxirnise
returns whilst meeting the Council objectives for this important site At present the application is
a hybrid (outline for entire detailed for phase 1) we believe an outline for the entire would be
more appropriate, Post review proceed to pIannng in order to secure the GLA agreed affordable
element quota.
• This may include making the BtR part of phase? once a iv partner has enabled the site and set
a new tone for the area by delivering open market units in phase 1 which will improve the
programme wide cash flow for the regeneration projects
Option 2- proceed with planning application

• Continue w’h planning appircatron having made sure the proposed design code for phase 2 s
suffidently flexible to allow a iv partner to design a developmeni which has the correct blend of
efficiency. affordability and quality whilst meeting the Councils regeneration objectives
• In addition, the Council need to re-examine whether a two form pnmarv school is still required
as part of phase 2 (as we understand the number of children requiring a primary school places
have been dropping in the Borough in recent years)
• On the assumption that the Counci accepts that the Poets Corner ste shou d be developed
through a iv, the scheme wou d be deve oped as a s ng e deve opment d vided nto phases The
timing of vacant possession of the ex st ng Cv c Centre w be Cr tca to ach eying the best
commercial outcome
Key viability Messages
The following has been extracted from the current Harrow Counc f nanc a mode by with the
assistance of •and based on the nformation provided by the regeneration team.
Poets Corner Phase 2

Total Development Costs:
Sales Revenue I
• Comments/Issues
Deuveryis currently through matched equity iv
Page 20 of 47
,: •\ HARROW REGENERATION PROGRAMME
t. J’HARROW STATUS REPORT
EXECUTIVE SUMMARY
benchrna’ed Open Mar<e: Lard vaLe of entire Poets Corner res dent a eeen: of the
site Detween
Actions
• Do not subm t p ann n arc des gn cooe (w thout amenoment
• Seect A’ partner for sno e ste
very aga nst
• A ow iv partner to adv se on des go compos ton of scheme phas ng and del
we ghed ob ect yes
• Dec ce to e :ner nc ude or c>:c ude 3tR as cart of phase 2
• Fu’the: meet ngs yjtn GA on AH percentane
BYRON QUARTER PLOT 1(134 BUILD TO RENT UNITS)
Man ssues
and vaue of
Prolected total cost of de very [
3 say ng
• IV procwement assumes
• Cons der re ax ng des go codes attached to app cat on p anning
BYRON QUARTER PlOTS 2 TO 12 (589 UNITS)
MaV Ssues
Land vaLue of
a Projected total cost of deliveryj
°roduces deveLecers profit of 1-1avov receive only
iv orocurement assumes 3% saving
Affordaule nousing
Includes car parking of 226 at an average of per space
Reqeneraton premium included,
BYRON QUARTER LEISURE
Main issues
• Land value of
Projected total cost of delivery
pitalpaye
• Line cost certanty over cost of leisure ust a day crc ceotal cost
• Harrow assuming a rental uplift of circa y’e d to secure of addt:ona
borrowing to offset delivery costs
Decision on whether to Include indoor bowls club
I
• recyclec C L payment berg used to offset del very cost :f es e
Page ?t of 47
SUlk HARROW REGENERATION PROGRAMME
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
BYRON QUARTER (COMBINED)
The Byron Quarter omprises 134 BtR un ts n pot 1 phase 1 and further open market units and
aHordable housing units as part of ater pots 2 to 12 Rep acement of Byron Box and Ic surc uses
are intended to be funded by profits generated by the IV which is expect to de ver a of the residentia
and leisure uses either through the iv or n the case of the e sure and B:P, in return for a deve opment
management lee
Oo:icns
Dp:ior 1- JV oelrveiy with. 3:R n a:e’ pnases

ncluoe au oeve:onmer.: wifl “r JV (same IV pailne’ as Poets’ Come’ or possb y a different one)
Consider de ivenng BtP later in the ceveloomerl (not :n plo: 1 prase 1) Coordinate devc:oomen:
of later phases to tie in vir’ ease expres on exist rg lersure eases Leisu’e to be orovded by
9 rca Development as per HNC at end of p’og’amrre ‘or ‘3M fee
• Co:ior 2- dei;venv wr all BtR re’ocaled to Poets’ Corer

Relocate B:R to Poets’ Corner as conside tnis is a betle- ocatjor fo’ BtR proauc:
Key viability Messages
The Ic lo rg has beefl ex:ractec lom the current Ha’row Council frarcia moce by with the
assistance cl and based on the rio-mates p’ov ced by me reoene’atio” tn-am.
Bvroniu ane ?hase - Pot I

eta Development
i:a’isecRej’enue
Comments/issues
De:ivery is via IV for a UM fee
Actions.
• Do not subm t p ann ng and des go code 1w thorn amendment)
• Select IV partner for whole site
• Allow JV canner to advise on design, composition ol scheme phasing and deLivery against
weighed objectives
• The dcc son to either include or exclude BiR from first phase.
pts2.cjdin7and12)
ktalDevopment
Sales Revenue
F
Comments/lssues
Delivery is currently through matched equity iv
Page 22 of 47
“CA HARROW REGENERATION PROGRAMME
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Actions
• Do not subrn I p ann ng and des on code (w thout amendment
• Seect JV partner for who e ste
A o; JV oartner to adu se on des gn compos ton of scn.eme phas:na and Ce very aga nst
weaned obectves
Then nec de to whether nc Lde 0 exc ude BiR (34 un is from fst phase
• Cons aer re ocat ng BtR to Poets Corner a bette’ ocat on br BtR
Byron Quarter Le sure
• Actons
• Secure N paner to assess de verab ty and Vat ty o ent re scheme
• Ensure esure costs car’ be offset from proft made of phase 1 & 2 of Byron
Comments! ssues
• Deductions relate to cycled Cil
Actions
Secure iv panrer to assess ceiiverabii;zy and v abiity of en’ve scheme
• Ensure leisure costs (an be offset from profit made of phase I & 2 of Byron
Page 23 of 47
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
1.5 SUMMARY OF AREAS FOR IMPROVEMENT
The areas ‘or no-ovemet ci own; tne eco’i and c acemet o !ne met i’m Management St’uc:ure
shou c be
rPROGMME WIDE
The Regeneration Strategy and Objectives previously approved by Cabinet needs to be re-visited. re
drafted and agreed by the Building a Better Harrow Board and Cabinet
The extent of Objectives should be reduced, have greater definition and prioritisahon with defined
commercial parameters
MASTER PROGRAMME
The ‘eview centified a lac o’ consistency ,n the proJect Drogrammes ow;ng the rev sed
Regeneiation Strategy anc Objectives (acove). and the suosequen: dec:sons that the Counci: make on
the Development Oct ons.
• The pro cot arogranmes will recuire review to reflect isa Development Do: on se.ec:ed and the
revised development brief
• The appointed Project Manager should retain the lead in. the production of the project programmes
and the resulting Master Programme to provide the consistency previously missing.
• The programmes should form the link to the Councils Financial Model (Project and Programme).
PROGRAMME MANAGEMENT AND METHODOLOGY
The revrew dent fcc a ack of e’,:oer er’ce in deivery of simi a, n’o’ec:s together v. tn a act: of cars ster.i
apphcazion of projector Programme processes o- procedures i,nec so te Courcils Francial Mode -
• The next stage ‘eqri es a clea’ set of dua,men:ed iJrtect procedures wnicn snoud be owrtec ad
become the responsibilty of each manager under the ieadersnip pronosed in tne interim Structure
(Section 26)
• The development brief and commercial parameters foi each project should be revised and
documented beneath the revised Regeneration Strategy and Objectives
• Each project should set the right balance between internal resources and appointed consultants in
order to address the 5r0l15 gap identified in both Programme and Project Management such that the
proposed project procedures are rigorously applied.
RISK MANAGEMENT
The review centfed that the CouncI’s Governance, and sne Programme and Pro;ect Management
appl ed d:d ot have adecuate disc pines n place for centifving measuring and reporting ris< to the
base’ parameters
• The adopted procedures proposed above (section 13) should set out the levels of risk management
to be adopted at project and programme level, and how risks are to be reported and addressed
• Each project should have in place clear project procedures for the risk and opportunity management,
across each stage owned by the cost consultant.
?acJe 24 of 37
.JHARROW STATUS REPORT
EXECUTIVE SUMMARY
he rev sed Governance StructUre sect on 17) should set eves s1th defined terms of referenre for
escalat on
H- -
PROJECT ANP PROGRAMME FINANCIAL MODEL
Tbc- rev civ den: fed that the Counc d d no: have a current F nanc a Model for the oraic-cts !fl Febiuarv
at the outset of comm ss on no th 5 report The review revea ed s gn I cant cost forecast increases across
a projects anc ower cap ta rece p:s nan nad prey oLs y beer reported
• The updated F nanc a Mode should be ma nta ned by an appropr ately skilled modeller experienced
n property and regenerat on T s one resource shou d be respos be for the modeL monthly
updat ng and report no
• The pro ect procecures shou d cea y SCt cut the respons b ty f0r p’ov.ding and updatng the core
data n terms ci Va ue anc cost ac apoa sa s to be owned by eac ceveiopmen: oroject
manager
STAFFING MODEL
CORE CLIENT
The rev ew set out the cr1 ca roe eq emen:s of the P’oQamme Manager, Rccenera:’on Manage’ and
Programme Ana yst ( nanc a Mode e’ and that there s a s gn’ficant gap in experience gained Irom
delver ng major schemes and therefore t1’at the breadth of ski S that the officers have fall short in
oroperty develooment and meeting the commercial objectives of the Council. The following should be
acaressec during an interim stage Iol,o;rç this report.
The skill base should be formed for the next stage with property development and transition
management experience borne from similar proiects in terms of scale and complexity, with an
ability to apply commercial rigour The fundamentals of development management in deliveR’
requ.red by the definec roles is cur’en: y nssing
• Eac manaDer should wore within the ‘evised Regererat.on S:’a:ecy against definec and
prioritised Objectives for the Programme and projects measuied against a sound financial
model
• The review highlighted the deficiencies in the SAC information reviewed. In response to the
of each
revised Regeneration Strategy and Ooject’ves, t”e next stage should see a ‘reset’
dove opment brief and comme-cia apn’aisa wh ch go hand r hand Time shou d be alowed to
review and ensure the briefs meet the Objectives and the appropriate skills are in place (see
section Next Steps and Interim Management Structure)
• The Financial Manager/Modellei ole should be defined and provided as a dedicated function
wtbn the regeneration team to maintain each project appraisal based o consistent
information and aoproacb across the Prog’amre
• External professional advice should be sought on areas where there is a gap in capability, and
most importantly when professional advice is provided it should be appropriately challenged
and then applied (not discounted)
EXTERNA SPECIAJST (ONSULTANCY RQJREML’T5
Whilst majority of the princip!e design consultants are in place on full scopes of service and defined
stages, we would have expected the role of cost consuLtant/Quantity Surveyor to have been appointed
managed
on a full scope of service and ntegrated with the design team The project should be led and
Page 25 of 47
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
with doser integration of the appointed external specialist consultant team

Subject to the placement of appropriately skihed and experienced resources to the next stage.
the Quantity Surveyor and Propect Manager/Employers Agent should be appointed on full scope
w;tbin the appointed team per project
The cost consultant should be closely involved in the production of the delivery programmes
and timing of the phasing to ensure adequate cos allowances are in place and an optimum
balance is achieved in terms of cost and time
• It is fundamental that the development brief is clear in defining the scope of the market facing
product to be delivered the property advisors and agents should be regularly consulted on
—
soecil:catcn and quai:v appropna:e fo- the cart cula P’OjCtt ard locaio
• All apoo:nt rents shouid be :essec :hrou —B Law 10 ensure mode fo’ms a’c- followed with
approorate evels of irsurence arc markel ‘equi’ements n :ems of —ovaror.. colateral
wa’ra.nties ane assignment
-IARROW COt.NCIL’S EGENERATiOR OBJECT yES
The Regereraton Strategy prevouslv aop’oved by Cacinet reeds to be re-vis;tei. red’añec and agreed
by the Building a Better haro\v Board and Cab net
The extent of Ooec:ives should cc reduced have greater dehnitio ao prior trsa!’on w:h aeined
• The appraisal of the development and delivery options should be assessed against the revised
crear Objectives included commercial parameters
• ‘he D&ectives reed to cc entrenchec in tie prociyemen: a-d evaluat on ci tena
REGENERATION MASTER PROGRAMME - -
Ci concljding this report it is v :n the Council to re set the Regenerator Strateg, ar.d Cb’ec:ves ann
p’ogress their cons derason and decrs on m:ak’ng on the deve oo’iien: options
• It snould be recocnisec ma: this will lace some ti-ire and v,iP mat! ucon the pogammes
curren::v set and assessed. There iS 10 sbortct to get the Ob;ectives riyt ann he resu’tanz
development Diefs and commec;aI cararne’,e’s cast Each poject then needs ciea’ leadership to
meet the Objectives and as part of the .nterim StrucLre or000sec refer sect:on 2.6) tnorough
revrews of the tascs need so take place and be programmed
HARROWS COUNCIL’S ECONOMIC INTEREST AND FINANCIAL MODEL
Please icier the Project and Programme Financial Model and Core Client SlaHing Model seclions above
on the need to apply dedicated property experienced Financial Management wnhin the Regeneration
Team
RECOMMENDATIONS TO MOBILISE
The next stage will see the Legal delivery structures required :0 be determined for each pan ol the
regeneration programme This should be considered in detail for each pan of the programme during the
next phase. This is likely to take in the region of 6 months to carry out
• Consider how the various elements of the programme should be ‘packaged so as to achieve
the best delivery result
• Procurement approach is to be determined, a workshop is to be held early in the next stage to
beqin development
Page 26 of 47
4.nt,.
EXECUTIVE SUMMARY
NTERIM MA’ACEMElcT STRuCtURE
Structure
6 von the changes ar sng from the revsed Regeneraton Strategy and Objectives., an Interim
shou’d be out no ace over the next9 months compr scng the necessanj skills and experience to
rnpiement the Deve ooment Opt’ons That the Couc dec de to adoot arid the need for a stec change
in
cc ‘very focused exper ence

• the Counc I shou d appo nt the cad t’e for the Trans ton Wo kstream, iv & Commercial
roles
Stiucture Workstrearn and the C rect Ce very Workstrearn These are critical Leadership
takng ovrersn p of each wo’ksteam to de ‘vet the Counc s ecefned Objectves
• A F nance Manager Mode e vtb the Regenerat on ea— sv:’. property deveicoment.
operat on and fund ng exner’ece shou d be appo nted at a senor Level
• The support managemen’ roes shou d be rev ewed agansl the structure proposed.
EX”ER’JA, SPEC A ST CONSUJANCY REQU REME\TS
Whilst the nter m structure s put ii u ace the current pr’nc pie consu tants shoud be reta ned.
wi tie
• As each project s furthered nde’ tie workstream cads each defined scope and contract
revewed ida ned re P05 t.oneo or rep aced to best meet me rev sed Ob cc; yes.
GOVERNANCE ARRANGEMENTS
- ——
o this s ze.
The Council has not nad or coplied an. appropriate floverrarca regime for a pogramme
shojld be out
complexity and r:sk raving now ‘ormed me Bulding a Bette’ Har’ov; Boad fine following
in place (followed by the recommendations made by the Councils appointed lawyers),
ensure
• Review each set of Terms of Reference (ToR’s) for the various decision making bodies and
these are c’ea” and consi5tent in iead1ness for the ne>tt stage
• The terms “Board’ and “Team” are used interchangeab’y when referring to ro[ect aria Programme
Boards/Teams one term is to be usec in the structure and IcR’s going (orwaro
—
ToP’s for
• Proper scopes for the various decision making roles (client, funder, investor etc.) and
should be developed consistent with the revised Council organisation strticture and development
options chosen
tie
• Review the governance arrar.gements ici tie Corcilrm Group to ens,.re al:gnr.eni w,th’r
proposed Council governance structure,
consistent
• Once the above is in place, develop the wider scheme of delegation of dec son making
with me deveoprnent options and regeneration programme of this size
Page 27 of 47
HARROW RECENERAT.ON PROGRAMME
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
1.6 SUMMARY OF GOVERNANCE
The rev ev has ooc-d at te Courc S nterrai governance ororesses aid proceares Tb.s e emen: of
the reoor has been oroduced n a 509 vi tb the Head of Governa cc 310 HE Law at Me Counc and the
Counci s newly appo nted ega adv sor for the Regenerat on Programme and
summar sed n three parts
1. Governance pie Decembe’ 2Q17

2 Current governance from January 2018 wth the estab shment of Eu dig a Better Harrow Board
3. Futtze coverrance stuctues fo the Programme
n recogn on of tie need ic ;:i—g gove’nance Me Counc s governance structure was being nterra y
rev ewed n pa’aile to die production of the Status Report anD processes progress veiy be ng put n
pace wth the object ye to ensure that the projects are executed accord ng to the Counc s Object yes
and Standards Wh st some of the new groups vi th n the governance structure have been formed, it is
expected by the Counc that tie new structure w be mp emented n September ths year once fulLy
documented A cross d -ectoraze work rig group has been formed to revew the format and process to
ensu’e a snoor’ mo enertal or
GOVERNANCE PRE DECEMBER 2017
We have rev ewed the governa”re st’ur ture eported to oe n p ace over :e ast 2 3 years lhs
summar sed f rstly ii the (gui e be ow
CAB NET
LD°CRAE SRATEG.C
BOARD CSB)
REGENERAT ON BOARDJ U
a CONTRACTS AND
u 2
COMM 55 D3 NC BOARD CCBt
I
PRQ,C1 EVEL PROGRAMME
TEAM MEET NUS —
During 201/, two add ona meet rigs where ntrodjced One at pro ect eve and the other more
programme wde Ire orpose of these charges was to n:roduce stppo-t and gu dance to the
Regenera: on Manage-sat cdv cL-a oreject eve’ by :—e ceaton of Pro ect Rev ew Meetings A
are reported to have gone through an ne v cua mouM y o’o•ect ev ew tie Pro cc: Revrew
meet ng ssou c nc ude we Regenarat-on Manager and Programme Manager h:s a owed a’ oveciew
of the project programme dent fed key risks and rev eyed we pro1ect rnance forecast t wood also
agree next stages for the prolect approva process Any pro ect r sks you d then be recorded into the
programmer sk req ster The second meet ng that was ntroduced was the Proiect Operat ons Boara The
Page 26
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
p’pose of the bo:-d was to pro’ de pro ect stage end approva s cha red by the DV S ona 0 rector pror
to gong to Contracts and Comm ss on ng Board (CCB) and Corporate Strateg c Boa d CS3.
CCB s conposed of off ce-s represent rz a d recloates and s chaed by e Coporate D ecter fo’
Resources currenty eisa toe acing Chef Executve Offce:) The Rcgeleato Pogamma Board which
was formed of Members and Sen or Off cers ceased r 2017 wh [St t’e Cap ta’ Forum as exstcd
ihroughout together w th var ous member br cings Fo ow’ng CCB pec remer,t reports then proceed
10 CSB for rev ew by the Corporate D ‘etturs Th $ s summarsed be ow
The Terms of Reference for CSB (wnose reembers are Counc Q’fces rake ‘eference to the cu-rent
Regenerat on Pro ects Boa d egacy RB) wn ch s estab sneo of a x of ected Membes and
Officers Our understanding s that the Legacy RPB w I not be nc uded n the future governance
arrangements. The CSB compi ses the Chef Executve Corporate Directors Mon tor ng Officer, siSi
Oficer and the C) rector of Adu Soc a Care Servkes CSBs roe is ntended to be strategc oversrghl of
a of tne Counc s act v t as and t s tasked with dent fy og we’e dec s ors we content otis a’d/o’
which are to be sub-n tied to Cao net equ r og to be aporoved by
The CSB meets on a week y bass and the Regeneration Programme and Pro acts are cons dared as part
of the agenda and discussed and act oned as needed by CSB
GOVERNANCE STRUCTURE DURING 2017
COROORATE STRATEG C REGENERAT ON BOARD

BOARD CSB
CON FRACTS &

COMM SS 01 NC: OARD :CCB. i’
‘ROJECT OPERAT’ONS BOARD
ND V DA_ PROECI REV FW

MEET NGS
CURRENT GOVERNANCE ARRANGEMENTS FROM 2018

h, cons dered the raw governance structure
As pan of the Regeneat or Rev ew
whch the Counc has been mpemert ng to manage the Regenera: on Dro acts mov ng Ior.vard We
in
understand that wh st the new y proposed governance st’ucture has been substant a y agreed
of reference are beng produced and these
pr nciple the ower t en reman f d as the data ed te-ms
have yet to be mp emented
Page 29 of 47
;, HARROW STATUS REPORT
EXECUTIVE SUMMARY
P ease see Delow uur ndestad “got curen: Gove.’na’ce S”C: ie
Caoer
Can ta Nate the grey Boards comprise Counc I

3H3
rorum Off Ce’ a:eg C dec s on makers
I The bue Boards arefunct’aa decson
I makers
New Civic Regeneatan
•‘ogramme P’Ograrre
Board Board
New Dvc Regenerat an

Project Project
Teams learns
The summary be ow sets out vie pos tan as we and unde’sand the role of each to
and now the entit es s”oud be farmed
Cabinet
rho Cab nets the man dec son mak ng body from wh ch a other dec sons regard ng the Regenerat on
Programme f ow. A key cons de’at on n des go ng any governaflce sr’ucture 5 to ba ance the need br
Cab net to be nuoved n major stratogc decsions other upfronz before an e omont of the Programme
is commenced, or at appropr ate points dur ng t with the need for objective dec son mak ng at lower
eves a the structure for exampLe du’ rig a regI ated OrocuCmQ’t exec se
The Buiiding a Better Harrow Board (BBHB)
The creal on of the Bui ding a Bette- “a’ row Board BBNB was an m000art step n recogn srg ?‘e
mpoa.9ce of focused Execut ye arent or Te Scares purpose s to pray de an overarch ng strateg
view of the Regeneration Hcus.ng and Cap ta De very Programmes n ts broadest sense across tne
Conc and ensure a c ear urde- stand ag of t’e nks bezweer nves:mer,t perfomance and outcomes.
BBFB was put 0 oace 10 take stcck ci the w der n:eractons wth the Counc s Amo ton °an, patterns
of need ;n the ccrnrnu t ad se’v cc de very ac’oss the range ci Counc funct 0,95 The Board also
mon to’ the perlo mance a-’d budget of a regererat on and caoa crc ects a-ac o agree a
regenera:oncap p’oects anc dec s or-s before they ate sun:r :ted to Cab net Membership of :he
BBHB s ossen: a y the same as -—a: ci t”e CSB though there a-c some adc tone attendees who are not
represented on CSB BBHB meets on a month y bass nctead if (S The purpose of BBHB s to a ow
focused dscuss on of the Rege”erat on Projects w thout r beng c’enaken by other Counci prlo”t es
Programme Board(s)
n add ton the CouncH has estab shed a number of P’oqramme Boards dee ng w tf’ various aspects o’
the Programme name y
W nt -17
1.’ HARROW REGENERATION PROGRAMME
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
• the New Civic Centre,

• the Regene[a: on Protects — currently st II ca led The ProJects Opear on Boa-a
• the bous ng °rog’arnme
• the COmmLIn ty Diograre and
• ike Poop es Cap ta Programme
Project Board(s)
The mention s for Pro’cct Boards/i earns to be estab shed n re at on to each individual project under
the above tue Programme Board meet ncs The ToRs for the Pro’ect Boards ate being developed and
we understard that they are mended to act as Me hands on dec s’c makng for :he oelivery team icr
te re evant par. of the Programme dur no the pecurement and de very phases
The Terms of Reference for the Regeneiat on Programme Board.s Pro oct Teams and other bodies are
current y being deve oped The R BA stages are be ng used to ensure appropriate sign off at the
milestone stages and report ng through to BBHB Whilst the report focuses on governance arrangements
for the Regeneration Projects on y many of the concepts h gb ghted herein could be relevant to the
wider areas of Hous ng Commun ty and Peope £ Capita Programme.
FUTURE GOVERNANCE STRUCTURES FOR THE PROGRAMME
have revewed tne Luirent governance struc:u’e ard they feet tra: cach board and
meeting has a differing set of Terms of Relerence, membership and decision making levels. It is their
view that these are not in a consistent format and do not make clear the interaction between the various
decision making functions within the Council
It is therefose, recommended that the Terms of Reference for the various meetings and boards within the
new Counc i Governance s:wcture be reviewed to ersure that there ‘s su”ic.ent cortsr’Jerat on betweer
each of the gouos to provide piotection for the Council and ‘ts officers and members
As previously noted, the Councils current governance structure is currently being developed and
therefore it is recommended that there be a consistent approach across Directorate reporting to
Building a Better Harrow Board and sub Project Teams/Boards need to be set up with again a consistent
approach to reporting up to Directorate Delivery Boards on project and programme, risks, costs and
other project related matters
Below we have set cut some key ecemmendations to impiove the exist.ng Goveriance structure’
ISSUE RECOMMENDATION
Terms of Reference for various decision making Review these with a view to remedying the issue at
bodies are inconsistent and unclear the next stage
The terms “Boad” and “Team” are used We would recommend that one formulation be
i—terchangeab y v”en -derring to Prec: and ‘ usedin each case so as to avo d co-fusion
“ogarnne Boards/Teens
ihe various decision making roles (client, funder. At the next stage of the programme each of the
investor etc.) require to be properly scoped against roles should be cons dered aga nst Harrows
Page 31 of 47
STATUS REPORT
EXECUTIVE SUMMARY
the Harrow internal structure and terms of internal operational structure. This will allow ToRe
reference etc. developed for each to be developed for each and also for the staffing
implications to be considered fLiHy
IS necessary to ensure that Ve governance At the next staoe a evev.cf Conc.iiums

arranaeents fo’ the Concilium Grou3 (a w’tnin governance arangements should be undenaken i
the proposed future ovenance strucwe. to achieve th’s
Once the scope of each decision making role This work should be considered at the next stage
(client, lunder, investor etc.) is determined, of the process
consideration should be given to developing a
wider scheme of delegation for each detaihna not
just financial, but also non-financial decisions of a
tyce rvo:cally ‘aced in a reoeneation programme
,Mvesto’ Zunction considerato to be g yen as to To be crsidered a: the next stage

I
wne:ne’ts ron’: si I apc!v accoss al commerce!
models
I—
Investor Function to he considered whether it To be considered at the next stage
should be a separate function to the BBHB (as the
Client Function is liLiely to be)
acov.’ner Euncton equire to cor•s;dei current To cc cons ceec a: :e ne stage

‘
arangeirents for real estate transact ons w.zhin
the Courc.l and how tney sculd sit witn n tee
governance mcccl
Fundei Function require to consider how to To be considered at the next stage

dev&op and staff this necessary function within the
Council’s existing finance function
Appointment of directors/board representatives Once delivery model(s) chosen, consider the skills
that ssil. be reqired to de Iver the orograirme and
use tn:s as a ;u:ce sc-ten cons dering wno shou d
be appo med to these roes.
Conflicts of nterest As part of the development of ToPs for the various

functional ioles, ensure that there is appropriate
separation of decision marKing (subject always to
the availability of Council personnel) As new
commercial models are established, ensure that
aooropriate conflicts of interest orovisions are
inc uded
0aae 011/
EXECUTIVE SUMMARY
1.7 JOINT VENTURE DEVELOPMENT OPTION — FINANCIAL MODELLING ASSUMPTIONS
Apo’cacr’ to JV
rhe contractor/deve oper s pray ded w di and from the loca author ty and the contractor/developer
then uses b s expense and supp y cha n to prov de the most approp ate scheme for the site, normally
based around what has been trod and tested many t mrs
Based on the above approach you cou d ekoect a substan a y a-ge reduction in delivfl costs o- a IV,
wn ch ou d ant c’pate to be oetween reduc: on n pro oct costs no:e however this would
be based on d’Uerent scheme proposa 5 th s s s mi ar to what has bee” seen on between
Harrow Counci The main varab Cs w be the type of contactor/dev eloper used and their
suppy char and the structure agreement reared wth the Count
Or the 3yro” and Poets pro ects e approacn to date has been d ffere-’t Harrow nas ta<en a desigr ed
approach there are a so a number of key var ab es wh ch potent a y offers mucn ess opportun ty for the
contiactordeveopor to provde the r standard aoproach
Based on the above appoach you con d expect a s—’a er educ: on n de very casts fo- a iv: \vn C’ we
wou d ant c pate to be beraee 0.10: ‘educt on n the pro ect costs. We ‘ave Isted be ow somo kcy
variables, allot wh cn wit have a bear ng on rho potent at cost.
• LandVaue
• Governance/cu tura d flerences
• N agreement w th tne Counc
• ype of contracto-/deve ope
• Market cond tons
• Attract veness of the pro ects to tho Contractor/Deve ope
• Status of the des gn. p ann rig ‘estr ct ons
• Ab tv to use the convactor deve oper standard mode on the ste
• lonure
• Percentage of affordab e nous ng
• Eff c ency of the des gn/enhanced des g’
• Requ rement fo PRS
• Sa1es values
• Approach to risk costs and nvest’ ents
Therefore at ths stage of the project have adv sed oniy a IV say rg for modelLing purposes.
Page 33 of 47
ft t)HARROW
STATUS REPORT
EXECJTIVE SUMMARY
PART TWO
2.1 PROJECT AND PROGRAMME FINANCIAL MODEL
SPEND TO DATE
The table below provides a summers’ of the spend on the Regeneration Programme to 31 March 2Q12, as
provided by Harrow Finance,
PROJECT SPEND TO 31/03/2018

BYRON QUARTER PHASE 1 — £535671
BYRON QUARTER P HASL 2 fl,724,567
BYRON LEISURE £380,558
POETS CORNER PHASE 1 £5749883
HARROW NEW CIVIC £3,871,286
GREENH:LL WAY £6.22e
HAS4M HDL’SE £760662
VAUGHAN ROAD LTD .472
WAXWELI LANE £546 098
GAYTON RD. ROXE’H LI3ZARY AND OtHER £11,356 678
TOTAL £25,699,133
FORECAST SPEND
In February 2018 the Counck approved a revised captal budget foi the Regeneration Programme of
L295m gross expenditure reduced to £207m net expenditure after the application ol capit& receipts
generated. the budget covered the 8 year period 2015/16 to 2022/23 therefore cDvered activity already
undertaken and future estimated expenditure
Since Febuary the Council has undelaken a comprehensive exercise, led by to review and
update the assumptions included in the existrng programme Areas covered included areas, costs,
revenues (including capital receipts) and timings and the review covered each individual project in the
overall programme except Gayton Road and Roxeth Library
Trw result o this exercise was that the ex.sfng prograre void actually cost reduced to
afte’ toe apolicaton of capital receipts lhis reusec prog’amme cost is :nerefore uraffordaoe
within the bcget envelooe ag’eed in February 2018 Te raole below shows the brea<cowr, of the
‘evisco programme costs over the nd vidjal proleczs:
Page 34 of 47
EXECUTIVE SUMMARY
that
The table below shows the var ance between the oudget agreed n Februa’ 2018 and the budge:
wouid be requred to compete the programme
Within the two tabes, the projects Gayton Road, Roxeth Library and ‘other regeneration expenditure’
in the rate of
were not addressed during the review and remain unchanged ecepi br an increase
capitalisaton interest from
2ace 3t 0147
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Gayton Road, Roxeth Library and Other Regeneration Expenditure were not addressed during our review
and remain unchanged, except for the effect of an increase in tine rate of capitalisation interest from
There a-c no current comparatives to’ Poets 2 r
The review exercise revealed significant forecast cost increases mainly in construction and lees, across all
projects
On the Capital Receipts side, in i:ebruary any accounting profit on a project sale was treated as a revenue
receipt and so omitted from the capital analysis. In the current revision project receipts are shown in luU
and on the bottom line the aggregate surpluses (from Waxwell Lane and Haslam House) are deducted.
They reapoeav as Funded by Surplus Reepss from Dsposal’ in te revenue impact anaiysis below.
This ina—ce seat or. has focused on capital exoerditure I

n terms of impact or the
Councils revenue account, it has always been accepted that during the dev&opment and construction
pnases o the pracramme levenue expendture wou’d be incurred that svoulG need lundr’g ir, the shon
term ‘Ths revenue expendcue largely relates to 000-captaiiseo emo.oyee costs, capitai fnancing and
cost’s associated with a move to the new Civic Centre, Capacity was created to fund these revenue costs
during the development period after which rental incomes would be sufficient to cover and any surplus
would be a positive contribution to the Councils MIFS.
However in light of the revrew identifying that the current capital budget is not sufficient, this does
imoact on assoc ated revenue costs and whethe- hey can be contained w thin the capacity created
especially around cao :ai ‘inancing costs. During tne rev;e’.v oeroc, cao:tal ard revenue expenditure is
being kept to essential only. As the programme evolves the caoital and revenue imo!icatrons of the
regeneration programme wI. ‘ae rcbustiy model ed to ensure it is affo”dao e, efficient ard demonstrates
the best v&ue from council assets
Page 36 o’
ç) HARROW STATUS REPORT
EXECUTIVE SUMMARY
PART THREE
3.1 CONCLUSION
n conclusion th s Regenerator Rev ow and the Execut ye Summa’ repon ‘-as covered The v;ce b’eac:h
and
of dela.s wit.n.n Harrow Ceunc s Regene’at on Programme ad set out Inc stans as a: Nov 201$
addressed the br ef
Pie iarçest and pr or ty s Tes vd 5 the pgr3fl are
• Harrow New Cv c
• Poets Corner
• Byron Quarter
• Creenh’ Way
• Small s tes Has am. House Waxwe ane and Vsuhan Rd
1 he above projects cornpr so a arge ange of regenerat on amb tons across d fib era occupatona
reeds and tenures Iherefore we re te ate that the proposed regeneration programme s complicated,
ambtous and wou d provde ca enges even to tne most expehenced properw company As such. t
leadershp,
cannot be over emphas sod how :h sca e of proposed programme requires delivery
commerca r gour and exper enced staff wtb the ab ty to deliver
and
hrognou: the review we nave found a 5Cr es of ‘ssues that have mpacted on the develooment
subsequert del \CR’ of the above proc-anne these nclude
• Insufficient evidence of detailed Strategic Business Case for each of the Pro ects
• Inconsistent Programmes and Project documentation
and
• \o master programme p!an. interdepenoencies and strategic sks across re poects
o’og r ammo
ssues across
• Insufficient management and understanding of Project Finances eading to v ab ty
lbe projects
pro oct
• Team are lacking eadership and the skills and exoerience to develoc and deLiver at both
and programme level
• No commercial expertise bult into programme
• No Financial Modelling expenise
To move foard there are a ‘-umber of key optons The

Regenerator Strategy prey ousy approved in
Boarc and
&aft by Cabinet needs to be re-vis:ted re-drahed a’-d agreed by the Bnld rg a Better Harrow
oriusation with ocinec
Cabinet. This would ensure objectives would have greater definition and p
The strategy once approved will enable the Council to be in a position to decide which of the
Business Case
development options set out [or each site are most appropriate to meet tre Strategc
snes
This wi’l in essence need to maximise toe Councils potental on all the Regenera: o- Pogramme
and Actions Plans developed for each project.
requ red, he
C;ven the above an nterim maragement siructu’e (or the Regenerat on °rogramre s
Regeneraton
s!ructue should be put nto olace and needs to address the ‘ack of leadersh, p across he
the resources with the experience to manage and de ver the period of
Programme and put into place
change to realign the programme.
Page 37 of 47
‘-ARROW REGENERATION PROGRAMME
t STATUS REPORT
EXECUTIVE SUMMARY
Jhe mel ‘ structure 5h.Qj d cove a period of 9 months from y 2016 to March 2019 The rev sed
structure w I prov do tr’e c arty of ownersh p and respons b ry to ach eve the rev sed objectives set and
each area of moioveent cut nod n Sect cr 1 of tn s summary ° ease see be ow tie o’oposec flier m
structure
INTERIM STRUCTURE
transition Warkstrram
iv & Commercial Structure
D:recr Delivery Workstream
tA,orkstream
Transition Lead iv & Commercial Lead Direct Dehvery Lead
Rev ew & eocsi: on ng Poets’ Corner Harrow New Civic (HNC)

ex’sting contracts Se’ror Deve ocment P’oect Sen;or Deveopment Proect
Manager Manage’ + Parsformat on
2rocuremerr ead Senro’ Project Manager
Byron Quarter Haslam House &
Governance Advisor Sen or Deve opmert Prc;ect
Waxwell Lane
Manager
Sen or Development Pro ect
GreenhiI Way Manager
P lance a son
Deve oprnent Pro ect Ma-age
Datarcor; support Schoos Programme
GLA Mo-dab e -ous no 5eno Deveopment Pro ect
LIa 509 Manager
P’ofess oral Support -urn ors
There are olw ous y key d fferences in s s and exper ence needed n the approach for the read of the
mult d se p nary direst de very (des gn construct on. sa.es and eas ng sk versus act ng as andowner
cent n ont verlure partnersh a and trose elements of ye Programme wn ci reed dci icon ‘or
change ard to mt gaze rsk
the scone to be set fo each roe of Transition Lead DrecE Devery ead JV/Commerc a: Lead s
demand ng The sk s ‘equ red need to be based on expelence ava abe through nter m support and
provide for the clear iead and respons b ty ci each workstream The organ sat ona structure reflects the
three nter m sen or posts
Transition Lead s respons be to, eadersh p of me step charge requ red n the approach to Programme
Management Deve opment and Pro1ect Management process and proced.res I h s should ntegate
wtn the new Governance anargennents b te Cou.nc wr ch are Ce ng put r pace for Septemoer
Direct DeOvery Lead s resoons be to ead the response to ye ce;e opmet b’ ef tnrougn eadersh p and
o-agement of en rtegrated des cci and construct on team The roe requ res prev;cus eadershp
eper ence n de”very of mor projects and work ng n an ntegrated de very env ronment through the
detailed design procurement de very and post comp eton phases n order to set the dehvery contracts
br this next stage Ph s senior roe d rects the Deve opment Project Managers to prov de the scope of
dC d c’ $
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
the works suitab’y procured to meet the optimum design and build delivery route for the Council in
terms of’ sk, costs. pooranre and cuaitv
The iv & Commercat Lead is responsibie to lead the development brief and definition of each project
resnonding to the Councils regeneration objectives They will lead and act as the Councils
representative in [he definition, preparation of due diligence and production of the procurement pack to
source the )V/DA partner through the public orocurement process This senior role will also lead the
negorations egarong an and sacs and the iformat on required under the ra-ageme”t o the Senio’
Deveoprert roect Manage’s.
Whilst the leads outlined above have the distinct workstreams in Direct Delivery of projects and defining
the Partnerships with the support of Development Project Managers the Transition Lead is a single
senior esource leading the elements of the Programme which need to be reposinoned and requires
cxce!er: ccmmurcaticr and st&ceho de’ skills
Within the supporl functions it is fundamental that a Finance Manager/Modelier working to tue
workstream leads is dedicated within the interim team and has a liaison role with the Finance Directorate
who provide the statutory and management accountancy function. This role is required to have property
developmenL operation and funding experience working across the orogrammc as a senior level
The Senor Development Proec Managers vo’kig to tne appropriate _eac w II cc requi’ed to lead the
breadth of both the market lacing development brief ano implementation and delivery of tne projects.
They wilt also be responsible for financial performance to meet revised Council objectives specific to the
project the consultancy commissions and repositioning the construction contracts for fixed price design
and build delivery Those enorting to the JV/Commercial Lead will again need to have the breadth ol
skiils ac’oss propenry development ano dehvery but vii be foused on pov.diig tke information for
evised strategy for oel:verv ih’ough the p’ooosed °artnersbips
The Transformation Senior Project Manager for the HNC will focus on the internal fit out eguirernents of
the building With any
client organisation there will be constant change to their occupational brief and it will be fundamenlai to
agree in this nte’im stage what the agreed space ‘eouirements a’e for eat division. and now Vc space
cull oe pianned to allow the audit of tne HNC to pogress to a sianec Di Ceveioprnent and dehvery
scope
Support roles will be required for Progiamme Co-ordination, Business Suoport, CT Plann ng Lason and
FF&E
Page 39 of 47
J) HARROW STATUS REPORT
EXECUTIVE SUMMARY
3.2 NEXT STEPS
Once new Interim structure is in p ace the Council shou d focus on the ía ow ng areas
1 Based on the Regeneration Review, refresh of the Councils Regeneration Strategy and Objectives.
outhning the weight and priority order, ensuring best use of Councils assets
2. Rcking up aU project and programme recommendations oudined in this report
3. Develop a clear Action Plan for the Regeneration Programme and update Master Programme
4, Develop individual Project Action plans including:
a Refresh the Strategic BLisiness Cases
b Refresh the Project Programmes
Update the Firancial Model for each Projects monitoiing project viability throughout
d Develop Ris and Issues Logs which are consistent and align at Programme and Project level
S Finalise the Councils Governance structure and pick up recommendations outlined in this report
All of the above actions should be progressed and performance monitored through a clearly defined
governance process through Building a Better Harrow Board and formal aooroval at Cabinet
Page 40 of 47
4. bARROW REGENERATION PROGRAMME
, /IHARROW
STATUS REPORT
EXECUTIVE SUMMARY
APPEN DIX
Background:
Harrow Counc has desened and deve oped an amb t ous Reqenerat on Programme The overall
purpose of the Progamme S to regenerate the borougr by DL d eq new Bui d for sent ad P’ ate for
Sc € nomes wh Q 350 Th C ng a cnQ term ,evenue nccme stream hr the Council Cur proposa
nc ude renewa of Counc nfrastructure by provd;ng a new Cv c Centre and replacement of the
Counc ‘Sony Le sue Centre comp a
The Counc s about to commence the next stages of ma or nvestrnent nÉe the Regeneration
Programme tr.s w cc funcec predom nate y by PW3 borrow ng The’efcre t fe t that ths 5 a goco
is
opuortun tyto carry cut an exte na assessment of :ne Regene at o Programme, anc if viab e ook eq
forward to the short to ong term per od over the next 10 years to identify the key programme
m lestones, what act’vites are requ red at each stage what nformat!on is required to empower the
Counci to make the nformed dec sons and most mportant y w at sk s and resources are requ red to
maximise ooponun ry and m n m se r sk to ihe Counc To enab e the Council io take the next slages
fottvard we a so reed to understa c cuent programme status the a st ng fund ng model and
summa’ se what essons have oeon ear : to date
The purpose of this document is to outhee the planned brief to

are an established commercial Development Management company
that have extensive exoerience in the field of regeneraUon and mixed use development, including
rosiden:ia.. commercial office ie;sure r.frastrjcture anc strategic and ihe have a comorehens’vo
portfolio of both public and orivate sector clients ircludino Councils that :ney advise on egenerat o”
programming and financial modelling.
The regeneration orojects that will be reviewed are as follows.

1. Hairow New Civic
2 Poets Corner (Phases 1 & 2)
3. Byron Quarter (Phases 1 & 2)
4. Groonbill Way
5. Vaughan Rd
6 Haslam House
7 Waxwell Lane
Commission Lead: The Client for this bnef s Pau Walker Corpoate Drecior supoocedby Dawn Calve’:
Director of Finance. I
Milestones Development will develop key milestones throug’out the commission to which
they wil. fo’nally report on a fonniahtly bass. These miestcnes will be d’rec:’y Inked to an agreed
payment schedule
Reporting: will formally report on progress at Strategic Fortnigbtly meetings with the Councils
Client loam. The foinightly update dates will be based on an agreed set of milestones which
will propose in response to the brief Throughout the commission will also be requested to
attend br:efing meet:rgs to senc’ oF:cers and Memoers (max mum S times)
Page 41 of 47
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
The Bnef:
The Council plans to commission to use theli Commercial Development experience to provide
Harrow Council with a Regeneration Programme Status Report, This report will include an ovemew of
the existing Regeneration Programme development to date, reviewing all key milestones and
establishing our strengths and weaknesses. More importantly, it will be looking forward from the
Councils position now over the short to long term period (next TO year period) identifying the next key
activities required across the Programme to enable the Courcil to manage the final stages of design and
development, contractor procurement, on sire delivery, handovei, operation and management whilst
maintaining financial control throughout. Based on the Councils financial model, the report will include
details of the proposed phasing and sequencing for each individual project programmes transferring
each of the seven project orogramme into a Master Programme. It will include the rationale for the
interdependencies across the projects, financial assumptions at key milestones and establish the risk and
critical activities and the gateway approvals required from now through to completion of the
programme
Based on experience supported by the Harrow Councils appointed consultants. the report will
set out the various development options for the Council and the principle advantages and disadvantages
for each of these options Working in liaison with the Council appointed legal company will
set out within the report the management and governance arrangements required between the various
parties such as the Council, LLP, Smart Lettings and jV/investment partners. The report will set out the
different roles and responsibilities between each party and their contractual obligations throughout the
life of the programme
The final Regeneration Programme Status Report will outlire the Councils key objectives and wilL
evaluate and measure the Regeneration Programmes success to date against the Councils objeGives It
will recommend areas of improvement, will set out best options for programme delivery (including
market based rat ona for the recommendations). In association with the Councils internal governance
review will assist in outlining the critical stages of approvals, change management and what
considerations the Council should be taking at each go, no go approvals’ within the programme It will
include a risk management strategy across the programme. including all areas of financial, programming,
contractual and reputational risks
The report will identi’ the immediate next key stages that the Council needs to embark on and the key
activities required throughout each stage of the programme to maintain managemenr and control over
at all times Finally, it will also include what key skills and resources will be required for the next stage of
the programme and Core team and additional staffing/interim consultants to enable the Council to
successfully deliver its objectives.
The brief is split into three key areas.
1, A review of the status of the Regene:ation Programme

2, Future Delivery of the Regeneration Programme Delivery Model Options & Joint Work with the
-
Councils Investor Function

3. Production of the Regeneration Programme Status Report with clear recommendations and
proposals to support the Future Delivery.
Page 42 of 17
bARROW REGENERATION PROGRAMME
k;HARROw STATUS REPORT
EXECUTIVE SUMMARY
Part l.A review of the status of the Regeneration Programme
tor the Regeneration

Workng with Sen or Counc Off cers out ne the Counc s key ob ectves
targets (Bu ding a
Programme. nc ud ng f nanc a Med on- Term F’nanc a Strategy a”d asp’ at ona!
Better Harrow ref Appendix .4
Therefore it wi look
Ths hr el requ res a Lear focus on the future of the Regenerat on Programme.
key activities
forward from now over the short to ong term oar od ‘next 10 year per od to establish the
the Counc to ma’age the next stages of des gn. anct
requ red across the programme to e’ ace
operat on anc management wniis: mainta ci ng
deve opment procurement and ide very ‘andover
financai contra throughout.
Working with the Client grouo focussing on the following areas
Individual Project Programmes Work rg wV Pie Couc and the r appo’nted sub consultants
—
detad all ke. project

develop project oroarammes from now tirotigh to p-oject completion It wi
programmes w. nc ode
act v t es nc ud ng phas ng and seauencng requ red tnoughout Tne
cr,t ca proect eve actv t es key cecsons requ red and gateway approvals
• Regeneration Master Programme Using the ndvidua project programmes dev&op a Master
—
Programme Th s wili deta I the project nterdecencenc es across the orogramme. areas o
opportunity, risk and cr t ca path ana ysis. It Wi establisn vnen key dcc sons are required and
impact of delays
• Programme Management and Methodology Rev,ew the existng programme management

—
opportunity and ‘isk

arrangements, inciuding management of cre scnemes project piog.arnme,
approach to each project based on
registers and issue logs. Establish if there is a consistent
b areas of improvemen t
orogramme information gathered and to p”ovide recommendations
dentified escaa:ed
• Risk Management Ver,f’’ how Inc prajecis arc programme risks are currently
—
Finance colleagues
and reported across the programme Working closely with Regeneration and
follow for the Regeneration
develop a clear and quantifiable risk management strategy for all PMs to
Programme at project and programme level (vorkshops may be requ:redi
financial model including costs to

• Project and Programme Financiar Model Ta establish the Harrow
-
To carry out a
date on each project within the Regeneration Programme including staffing costs
project evei Financial Mooeis enswing tI-at they capture a’ costs.
review on the existing scheme at
tne programme and revie’vn; impact on Programme Finarcial
establishing consstency across
Model,
o- various development ootrons

• Development options Basec on experience aspreDM wil aevise
-
for the Council. In laisor with the Counci,s appont ed lawyer, the h-ia! report will denuly and
between the various parties such as The
recommend the management arrangements required
It will set out the different roles and
Council. LLP, Smart Leflings and N/Investment partners
:gations throughout the life of the
responsioilties between each paly arc the.r cot-actual ob
program me
0age 43 of 47
;) HARROW STATUS REPORT
EXECUTIVE SUMMARY
• Company and Partnering Resourcing — Based on the above development options advise on any
external companies and Partnering arrangements resotilcing and management requirements.
• Governance arrangements Working alongside the Councils internal governance review and in
-
liaison with the Councils apcointed lawyer, provide recommendations on the management end
governance arrangements required between the various parties such as The CounciL LLP, Smart
Lettings and JV/lnvestment partners
• Core Client Staffing Model ]o develop a Year on Year core client staffing mod&. This will include a
—
lunctional structure of the core staffing team requirements, including skills and expertise required at
each key stage throughout the programme development and delivery To review the existing skills
and experience of the regeneration team and to carry out a ‘gap analysis’ based on the above known
programme resourdng requirements
• External specialist consultancy requirements To review existing external consultancy apporntments

—
(including Design Team appointments), review briefs and identify individual scope of services, advise
on any chaflenges that these appointments may cause the Client Establish and map out any critical
interdependencies between existing work activities carried out by external specialists Looking
forward provide a breakdown of additional external resources that will be required at each key stage
of the programme and provide clear recommendations on what amendments the Client may need
to consider on existing arrangements to ensure no impact on programme delivery
• Expertise and Experience Throughout the commission and based on

— experence and
expertise identity any other areas that the Council need to consider and manage to support the
successfu development and delivery of the Regeneration Programme
Part 2; Future Delivery of the Regeneration Programme - Delivery Model Options & Joint Work with the
Councils Investor Function
1. Review the Build to Rent Financ a’ Mode and estab ish how the Counc s economic interests are
currently placed within the mode for example; Landowner interest, Deve oper rnterest and
Investment interest. In liaison with the Councils appointed lawyer review the separation of those
differing interests and the commercial relationships that currently sits between them
2 Identify and recommend on the various alternatives uses of land receipts
3. Through separate resource to be provided to the Finance Team continue to assist Finance
colleagues to adapt the Harrow Financial model From the existing information available for the
development interest, financial y assess two diferent scenar os
Option 7 The Council running two developer functions I e. both an in-house wth D rect De very of
-
Poets Phase 1 and the :HNC, and iv for Poets Phase 2 and Byron Quarler Phase 1 & 2 (which will
exclude Greenhill Way)
Option 2 - Based on the programme recommend other suitable delivery options eva abe to the
Cotincil.
Establish and identify the risks and benefits of each option and give recommendations Develop a
timeline programme plan for delivery which will include all key tasks and interdependencies I his
eage 44 of 47
HARROW REGENERATION PROGMME
EXECUTIVE SUMMARY
timel ne must be tea s: c and w an acceptan e eve of risk to t1’e Counci, rhts wu( be out:ineo in
rhe br,eñ,tc process;.
Compare th s trne no and prog’ ammo p an w th the ox st ng p anned delivery process
to
4 Work ng n ason w U’ the Count 5 apco nted Lawyer rev ew and provide recommendations
mcci! so the P and ts roe n the Count s So o to Rent Corn” crc a. v1ooel and cenify any major
proposed could cause problems in the
weaknesses or areas where based on exper ence what s
future. Tb s rev ew w nyc ye rev ew ng documental on and d scussing pioposals with the
Counc s nvestor fuct or.
and
Part 3 Production of a Regeneration Programme Status Report with clear recommendations
proposals to support the Future Delivery.
w; p-oduce a wr,tter report for the C ert w.fr the overaji Lnd’ngs a-d clear
i’ dude the
:ecornmondat ens for future Drerosa s foi ‘ne Counc ‘s Regene at o” -rogramme t wi
requirements , exist ng arrangements . sumniarising lessons learnt to date
delivery options. next stage
current capacity and

wi icorporate a points gathered in Parts 1 & 2, assessrg the status of .Hauow s
the key skI’s ad resources iecuired intemally rd exiernaHy to monitor manage anc convo me
successfully cc ‘very of the Harrows Regenerat on Programme
1 he programme is set to run from mid-February with being issued in November 20’8 In
Ci a
ordv to meet Vis timeline. al tie information, requestec by as&reDM s to be set out by
to and supoon is required
weekly oasis wtth the Client orov cing inforrnat.on in a time y fashiofl Access
from the Harrow Council separately appointed consultants in order to complete the Status Report
Ethos of the Comrnisston:
criabo-atve y to
Ihioughou: tie comm.ssion, both parties wi work .n the split of pannersr in, ‘-o’kng
weeHy meetings. will be arranged to establsh weekly fortnightly and
achieve a joint goal Operatonal
monthly activities (agenda sent to
Strategic fonn ght’y meetings wil be arranged with the Clent for to oresent finc r.gs to date
(based on agreed set of milestones), make recommenda tions for improvemen ts and escalate any urgent
issues. This will also be an opportunity for to seek strategic gu dance from the Cl ent as
required.
as a ‘s.rgle point of contact’ for the Counci : wi nc’ude
The Client will also provide
ensuring a clear flow of ,nforra:.cr between both caries.
Page 45 of 47
HARROW
STATUS REPORT
EXECUTIVE SUMMARY
Brief Appendix A Harrow Regeneration Objectives

-
Building a Better Harrow together, for today and for future generations
• Developing a place the residents of Harrow can be proud of, a place that feels vibrant and exciting.
• Developing a sense of identity for Harrows town centres and making people feel safe and included.
• Developing a contemporary form of the Harrow vernacular architecture and desicn of public spaces
so tnat in the luture. Harm,v develops a ‘eptation for quality
Addressng housing need, palicularly for affordable housing.
• Accelerate the speed of housing dehvery to address a London-wide and Borough-wide failure of the
market to provide adequate housing supply
• Ensunng the Council is at the forefront of delivery, developing and delivenng housing by capitalising
or land assets to deiivei the maximum amount of affoidable housing possible.
• Engaging with puohc and prva:e sector partners to ensure ci oonoflj.mlies to nax:mise aordaole
housing are realised
The Council developing its own land — to meet community needs and to make better use of its own
assets.
• Maintaining a key role in the development of the Councils’ assets and thus, the ability to prioritrse
social ano clysica! infrastr.cture associated w:tr develooment anc the q_al t. of each deve!opment,
• Maxi—.ising the eff ciency et sites to del ye’ maximum captaI receipts 01 revenue from each site
A new initiative for the Council to buUd homes for private rent (in addition to social rent/affordable
housing) There is a Build-to-Rent programme to develop about 600 new private rented sector (PRS)
homes on Council land, for market rent.
• Enab € the Counc to deve oc a long tern and mghiy vai,uabic asset that viil generate revenue to
supoorl Couflcil serx’:ces year-or-year and appreciate fl va’ue.
• Enab’e the- Courci! to prov de a far deal for Har’ow tesdents in the private rented secto who may
be at risk f-am unscrupulous ardiords Dy prov:ding logei term securec tenancies and nigh quakty
management.
Renewing civic, cultural and community facilities and meeting infrastructure needs through the provision
of 2 new schools, a new Central Library and a new (more efficient and smaller) Civic Centre, together
wth improved cultural and l&sure provision.
• Recogn’s ng the imponarce and va ue of investing n social, educational. prysca, cultu’al and
leisure infrasti uclure.
• Engaging the community in the provision of infrastructure.
• Developing an evidence-based Infrastructure Delivery Plan and robust tests for the allocation of
capital funding. Community Infrastructure Levy [CILj funds and the New Homes Bonus
Creating quaiity places both through a focus on qualty design in new development and tirough
—
schemes to create new public squares and soaces and to improve key links and routes (such as Station
Road).
‘ace 45 ot 47
1::’ \‘ HARROW REGENERATION PROGRAMME
1HARRQW STATUS REPORT
EXECUTIVE SUMMARY
• Delver a step change n ces gr qja zy though des gn educat on n. vatives Cr. indeuenden: Des g
Revew °ane anc updated pa cy end cm dance
in
• Developng a focus on des gn deta and exemp ar deve apmet to initiate an active change
approach from dove opers seekng to nvest n Harrow
and
Getting maximum benefit for the local economy through the creation of new employment soace
—
measures to develop loca apprenticesn ips and training schemes and to buld iocal supply chans.
• Del ver ng new workspace a d e p oyment targeted at a Harow specific market where evidence
snows emoyment opoartun tes have t e most ract on and success
• °romot ng and re nfcrc i sac a ye ue ob gat ons to oav de oopo’iLinizies for al to access
emp oyment and tra n ng
• Deve:opng a pogramme of comm u ty based consu tat on e”gag ng stakeholders and using local
know edge to shape The deveopme tot the borough
in
• Creaung newjobs breaking cosvn bar ie ste emp Cyrnent. tack rg overcrcwdirg and fu& oove:y
cur homes and wcfr ng alongs je other serv ces to ad&ess neclth ano we rare issues
skills
• Reinforcing our commercial centres, promoting Harrow as an investment location addressing
through
shortages supportng new bus ness start ups and develop ng local supply chans
p’acurernent
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LILDING A

HARROW REGENERATION PROGRAMME

Issue date: November 2018

10 Precrs of E<ecutive Surrimary

11 The Regeneration Strategy and Ob ect yes 2

12 Summary of Individual Projects and Programmes 3

13 Programme Level Key Issues 6

14. Detailed Findings and Key V ab ty Messages S

1.5 Summary of Areas for Improvement 22

1.6. Summary of the Councils Governance 26

1 7 Joint Venture Development F nancra Mode Assumptions 32

2.1 Project and Programme Financ a Mode

3.2 Next steps and nte in St ucture .38

Br ef for the Harrow Regenerat on Programme Status Report 40

1. PRECIS OF EXECUTIVE SUMMARY

Vhe Courci commissioned to use their Commercia Deveico’’ent exoerie”ce to provide

• requires focused leadership experienced in delivery,

improved Leisure Certre comdex

We would make the following observations on the above

1.2 SUMMARY OF INDIVIDUAL PROJECTS AND PROGRAMMES

• bar’ow New Cv c CHNC

SMALL SITES: HASLAM HOUSE, VAUGHAN ROAD & WAXWELL LANE

HARROW NEW CIVIC (HNC)

POETS’ CORNER PHASE 1

POETS CORNER PHASE 2

j1r2As above be:: &so consicer relocating 3t to 2oc-ts’ Corne and

1.3 PROGRAMMME LEVEL KEY ISSUES

Management & Leadership

Other project issues

1.4 DETAILED FINDINGS AND KEY VIABILITY MESSAGES OF INDIVIDUAL PROJECTS

HASLAM HOUSE (9 OPEN MARKET RESIDENTIAL UNITS)

Option 2- proceed with Direct Dehvery (Design and Build procurement

Option 3—sew with the benefit of p]anning consent

Key Via’aI ty Messages

• iota: Jeve!cpnert Costs

VAUGHAN ROAD (33 BUILD TO RENT UNITS, 3 AFFORDABLE HOUSING INTERMEDIATE)

Dot-on 1- proceed with Dvect Delivery (Desgn and Build procurement)

• Option 2- sell w;th the benefit ofpanning consent (for BtR;

Key V ablity Messages

WAXWELL LANE (20 OPEN MARKET UNITS, 4 AFFORDABLE HOUSING UNITS)

Opt:on proceed w;tn drec: delve5’ (Design ard Build contract)

deivery orojects. it s intenced to

• Option 2- sell land w th benef t of plann ng consent

Key Viab I ty Messages

relates to a scheme that has not been designed and properly

• Option 3- sell in the open market without planning

<ey Viabi iry Messages

ota Develooment Costs

HARROW NEW CIVIC

jitlebudet i’- the cost pan •

lola Deveiopmens Costs.

• Potential savIngs stifl to be made

POETS CORNER PHASE 1

• Planning application is ready to be submitted

• Oot o’ 1 OaLSC canning application

• Option 2 proceed with Direct Delivery (Design and Build contract)

• Option 3- do no: proceed until JV partner is selected

• Tota Deve ocenr Costs

Open market resdent a un ts wou d generate a net croft of on y