Haringey LBC’s cabinet has voted to withdraw from a controversial £2bn regeneration partnership with the firm Landlease, which would have resulted in the council’s commercial portfolio being transferred to a public/private development vehicle.
A recommendation to end the process of establishing the Haringey Development Vehicle (HDV) was approved last night, with Haringey now set to proceed with an alternative council-owned development company.
A report to cabinet says the new Labour administration does not agree with the transfer of public assets at the scale planned in the HDV proposal and the portfolio should remain under council ownership “on principle”.
It adds the administration “is not prepared to accept the scale and nature of risk implied by the aggregated volume of the proposed HDV programme”.
Landlease recently wrote to the council to warn it would have “no choice but to seek to protect [the company’s] interests given our very significant investment over the last two and a half years” if the HDV does not go ahead.
The cabinet report says the development of the HDV has to date cost Haringey £2.5m. It has also agreed to pay Landlease costs totalling just over £520,000 as a result of last night’s decision.
Previous Haringey leader Clare Kober (Lab), who backed the HDV, stepped down at the election amid claims of bullying and the influence of the Momentum movement in the party.