Haringey set to scrap controversial regeneration vehicle

The London borough of Haringey is set to abandon its controversial regeneration plans at a meeting next week.

The council’s cabinet is due to meet on Tuesday (17 July) to discuss a report, which recommends abandoning the Haringey Development Vehicle (HDV) joint venture with developers Lendlease.

The regeneration scheme was adopted last year by the previous Labour administration, despite opposition from residents, opposition councillors and local residents.

In January, the council’s then-leader Cllr Claire Kober announced plans to stand down from the council at the May elections following a rift within the Labour Party.

The new Labour administration, which took over in May, has promised to pull the plug on the project.

The cabinet report states that ending the contract with Lendlease will mean the London borough will have to pay Lendlease £520,275 to cover costs.

It also notes that the council has already spent around £2.4m on the project, as well as £250,000 defending a judicial review, which was brought by residents.

‘There can be little disagreement among those that love our borough about the importance of tackling poverty and deprivation, providing access to housing and jobs, and securing a sustainable future for the public services we provide,’ the report states.

‘However, the proposed HDV has shown how strongly opinions differ – inside and outside the council – about the best way to address these important issues.’

The council has also published a letter from the chief executive of Lendlease Europe, Dan Labbad to the London borough in which he states the developer ‘will have no choice but to seek to protect Lendlease’s interests given our very significant investment over the last two-and-a-half years’ if the cabinet decides to scrap the HDV.

‘Lendlease is entitled to be treated fairly and not be discriminated against and the council is obliged to act rationally,’ the letter states.

‘You will presumably have taken legal advice about the full range of remedies that would be open to Lendlease if we were prevented from proceeding.’