Lambeth Council set to award £6m+ contract to developer to start Cressingham Gardens estate regeneration

Lambeth Council clarify their timetable of destruction for Cressingham Gardens Estate

The regeneration of Cressingham Gardens has moved closer with Lambeth Council set to appoint Mott MacDonald as the development manager. The deal is worth £6,674,496.

A report [pdf] prepared for Deputy Leader of the Council Cllr Paul McGlone hints at more than the original 464 new homes. Cabinet agreed the original figure for the Tulse Hill estate in March 2016.

The document states:

“If, through the masterplanning process, the project grows beyond 464 new homes, then the design work would be correspondingly more and we could expect the development management contract to increase above the current level.”

The Labour Cabinet agreed to demolish all 306 existing homes as part of estate regeneration. Out of the 158 new homes, 47% will be ‘affordable.’ The majority of the new homes will be available at market rate.

Mott MacDonald is an employee-owned global organisation. The company has worked on the Channel Tunnel, Wembley Stadium and Crossrail.

The fee of £6,674,496 will come out of a budget of £25m allocated by the Council for six estates that have been identified for regeneration.

In return, Mott MacDonald will provide a two stage programme of works. The first job will be to secure planning consent and complete the Compulsory Purchase Orders. This will then lead to the procurement and management of the project.

Mott MacDonald was selected following a procurement process. Tenders were ranked on price and quality assessment. There is a break clause in the contract if the project is not proceeding as planned.

The Council report states that this work will start in ‘early 2017.’ Completion of the Cressingham regeneration is scheduled for 2024.

The estate will then be managed by Homes for Lambeth – the new company set up by the Council. This allows the local authority to behave as a property developer. It is at this stage that the construction costs will be recouped.

The estate regeneration of Cressingham Gardens is already behind schedule. A 2015 High Court Judicial Review found that Lambeth Council had acted unlawfully as part of the consultation. The Council spent over £27,000 in legals fees to try and defend its actions.

A second consultation followed, along with a second High Court Judicial Review in 2016. Residents claimed that Cabinet members were misled over the financial viability of the project. Mr Justice David Holgate rejected the claim.

Brixton Buzz reported this week that Cllr Matthew Bennett, the Cabinet member who pushed through estate regeneration, has now been handed the Business brief.