Issue - meetings
Rochester Riverside Deed of Variation
Meeting: 23/09/2025 - Cabinet (Item 12)
12 Rochester Riverside Deed of Variation 
PDF 141 KB
Minutes:
Background:
The report sought agreement to a deed of variation to the Development Agreement.
Medway Council delivered Rochester Riverside as a Joint Venture Partnership with Homes England (HE), Countryside/Vistry and Hyde. Rochester Riverside was a mixed tenure regeneration scheme which had been a successful scheme so far, however unanticipated costs had been incurred against the school build when the original firm went into insolvency. Whilst construction risk was held by Vistry, it was not clear who was liable for these specific cost overruns and therefore the Joint Venture (JV) had identified a solution to mitigate the impact to all parties and not reduce the gross land payments to Medway Council and HE. The scale of these changes required a deed of variation to the Development Agreement.
Exempt Appendices 1 and 2 to the report, provided further information in respect of the Heads of Terms for deed of variation to the development agreement and new payment profile and calculations of impact to treasury.
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Decision number:
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Decision:
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140/2025 |
The Cabinet agreed to vary the land payments to the new payment principles of 20% - 1 year after drawdown; 50% - at midpoint of sales programme; 30% - Final month of sales programme.
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141/2025 |
The Cabinet agreed the Heads of Terms set out within Exempt Appendix 1 to the report and agreed to grant delegated authority to the Director of Place in consultation with the Portfolio Holder for Climate Change and Strategic Regeneration and the Portfolio Holder for Economic and Social Regeneration and Inward Investment, to finalise the Heads of Terms and amendments to the Development Agreement. |
Reasons:
This matter has been ongoing for some time and a resolution is now required in order for the development of Rochester Riverside to continue. The proposed reprofiling of payments means no risk of capital cost to the council or costs associated with litigation. The gross amount remains the same and enables Vistry and Hyde to absorb the school costs that were incurred by matters outside of all parties’ control.