A developer planning a 67-storey residential block has confirmed more than £20million could be pumped into the community should the building get the go-ahead.
Shanghai-based Greenland Group held an exhibition for plans to rebuild Hertsmere House in West India Quay, insisting any development would come with significant investment in public amenities.
Greenland’s senior planning manager Setareh Neshati said: “We are still in negotiations with Tower Hamlets Council on how much we will contribute, but I can tell you the figure is already £20million”
Contributions, referred to as either CIL or Section 106 payments, are often requested by local authorities to offset the impact that the development would have on an area’s infrastructure, such as roads and schools.
After discussions with the council, Miss Neshati confirmed Greenland had agreed the CIL payment would be £20million, while the Section 106 was still to be negotiated – though this would be nowhere near as much.
A percentage of the development has to be affordable housing and the company said it wanted to create a diverse community within the building.
However, the tower would exceed the recommended density for housing as set out in the London Plan.
Miss Neshati said: “The whole reason for Section 106 and CIL money is to mitigate the impact on local resources, such as transport and schools, and this payment should help with that.”
Speaking earlier this week, Canary Wharf councillor Andrew Wood reiterated the importance that CIL and Section 106 should be spent on the Isle of Dogs.
Worried the money could be spent elsewhere in the borough, he said: “With the developments that are planned, this could be a gold mine for the council but historically the money has never been spent in this area.
“This is a major concern for local people – they are suffering from construction and increased traffic in the area.
“I want to ask the people how they would like the extra money to be spent. Think of how far £5million would go to improving John McDougal Gardens– £6million could even build a school.
“These are all possibilities we should be looking at.”
A planning application for the building is expected to be submitted to the council this summer.