Lendlease has dropped legal action against Haringey Council over the axed £2bn Haringey Development Vehicle (HDV) regeneration scheme.
The developer ended its dispute over the joint venture after reaching an undisclosed out-of-court settlement relating to the cancellation of the project.
The end of the legal battle has cleared the way for a separate project between the council and Lendlease to go ahead in the borough close to Tottenham Hotspur Football Club’s new stadium.
The large HDV project had been the focus of a bitter battle within Haringey Labour group and campaigns from residents’ groups.
Haringey’s former leader Claire Kober (Lab) and other senior councillors stepped down at May’s election following splits in the party and a local campaign against the HDV.
Under the plan Lendlease would have taken more than £2bn of council assets and owned a 50% stake. In return it promised to create 6,400 homes and 20,000 jobs.
The new administration, headed by former deputy Joseph Ejiofor (Lab), scrapped the scheme saying the level of risk was too high. A council report stated: “The new administration does not object to outcomes anticipated by the HDV programme, nor does it object to the principle of partnerships with the private sector. But it takes a different view on the acceptability of the risks.”
Lendlease responded by saying that Haringey Council had breached the terms of the contract and launched legal action over loss of earnings from the cancelled project.
The separate deal for the development will involve new homes and community facilities.
A Lendlease spokesperson said: “While we remain disappointed about the decision not to proceed with the HDV, which was fully out of our control, we have now agreed a settlement with the council. This enables us to move forward and work together on the High Road West scheme, which will bring much-needed new homes, jobs and community facilities for the people of Haringey.”
A Haringey Council spokesperson said: “Lendlease and Haringey have agreed final terms following the cessation of the HDV and there will be no further legal proceedings.”