Methods to enhance site viability

Some examples.. Joint venture approaches/risk sharing Local investment models – e.g.TIF Value engineering – tenure, mix, phasing affordable delivery Deferred land receipt

What is deferred land receipt? Deferred land receipt is taking payment for land later in the development programme This might be staged payments or a lump sum consideration Payment could be made at the end of the development period or at a given point during construction

How can it assist? Potentially offers a larger land receipt to the landowner Allows payment to be structured to tie in with land owner priorities – works well with sites with large infrastructure outlays/abnormal costs Allows developers to avoid large capital outlay and substantial finance costs early on the programme Allows developer to concentrate on developing infrastructure/public realm/other key outputs earlier, rather than just accelerating house building Can work well with phased development

Benefits For land owner: A larger receipt and in some instances on very marginal sites, a receipt Key regeneration priorities phased to be delivered early in project For developer: Avoids substantial capital outlay at start of project Avoids finance costs of the large outlay Allows sales revenue to be captured before land payment Allows more flexibility in cashflow

What are the political competing pressures/financial constraints on land? What would make it easier to be creative with land disposal? What opportunities can deferring receipts bring? Are there marginal sites where deferring receipts may positively impact on delivery? How might HRA flexibilities work with these models to deliver? On surplus and existing developed land. Breakout Questions

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Finding a Development Partner Things to consider … Getting the timing right De-risking the site to make it attractive Disposing of sites in geographical packages Choosing attractive contract and payment terms Value for Money

Disposal Routes Unfettered Open Market Sale Joint Ventures OJEU compliant procurement - Competitive Dialogue - Restricted OJEU - DPP

A Delivery Partner Panel A fast and efficient ‘one stop shop’ for the procurement of development and construction-related works Works can be procured via a mini tender process as opposed to a fully OJEU compliant procurement process Available to partner organisations like Local Authorities & Registered Providers Re-procurement of new panel

3 Stage Mini-Tender Process

What is your current approach to procuring partners and the disposal of land? How have OJEU, JVs and partnering through development assisted delivery in your organisation? What is you experience of using delivery panels? What criteria would you use to procure a delivery panel? What are your views on a pan-London register of public land holdings? Breakout Questions

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