To receive a report from the Director of Finance, Resources and Customer Services setting out the preferred option for the Montagu Estate’s redevelopment.

(Report No.69)

(Key decision – reference number 4357)

The report will need to be read in conjunction with Report No.74, on the Part 2 agenda.

Council is being asked to approve the additions to the Council’s capital programme for as set out in recommendations 2.7 and 2.11 with further details in the Part 2 report and to note the other recommendations agreed by Cabinet at the meeting held on 6 September 2016. 

Councillor Sitkin moved and Councillor Lemonides seconded the report of the Director of Finance, Resources and Customer Services on the Montagu Estate Redevelopment.  (Report No: 69)

NOTED

1.               The report was considered in conjunction with report No: 74 on the part 2 agenda. (See Minute 26).

2.               The majority party view that there was not enough development space in the borough so that intensifying development on the Council’s own land was one of the key options.  The Montagu Estate, which was mainly owned by the Council, had been developed haphazardly in the past, was in poor repair, and so it made sense to knock it down and rebuild, making more efficient use of the space available.

3.               Financial analysis supported this option.  Rebuilding would provide more space for more businesses which would enable higher levels of employment, people would therefore be able to buy more goods and this would generate more taxes.

AGREED

1.              To note that Cabinet had approved the various options available for the use of the Montagu Industrial Estate and the economic and financial rationale for the establishment of a joint venture special purpose vehicle.

2.              To note that Cabinet had approved the redevelopment of the Montagu Industrial Estate for employment uses with the objective of securing wider economic and social regeneration benefits, as well as generating revenue funds for the Council to reinvest in Council services, and approves the demolition of Unecol House to facilitate the phased redevelopment of the Montagu Industrial Estate.

3.              To note that Cabinet had approved the establishment of a special purpose vehicle, joint venture LLP, to take forward the redevelopment of the estate and delegates authority to the Director of Finance, Resources and Customer Services in consultation with the Assistant Director (Legal and Governance Services) and the Cabinet Member for Finance and Efficiency to enter negotiations, finalise the terms and enter into agreements associated with establishing the special purpose vehicle.

4.              To note that Cabinet had approved the use of the Council’s real assets (property) located in the Montagu Estate to be used as an equity stake for the Council in the Joint Venture special purpose vehicle and delegates authority to the Director of Finance, Resources and Customer Services in consultation with the Cabinet Member for Finance and Efficiency, and the Cabinet Member for Economic Regeneration and Business Development to  transfer these assets into the special purpose vehicle as and when required (subject to compliance with the Council’s Property Procedure Rules (PPRs)).

5.              To note that Cabinet had approved the procurement of a joint venture partner with which to form the special purpose vehicle and delegates authority to the Director of Finance, Resources and Customer Services in consultation with the Cabinet Member for Finance and Efficiency and, the Cabinet Member for Economic Regeneration and Business Development to enter into negotiations, finalise the terms and enter into agreement with the procured recommended development partner.

6.              To approve the addition to the Council’s capital programme to fund the creation of the  ...  view the full minutes text for item 11

A report from the Director of Finance, Resources and Customer Services is attached. This sets out the preferred option for the Estate’s redevelopment. (Report No.74, agenda part two also refers) (Key decision – reference numbers 4357)

(Report No.69)

(9.00 – 9.05 pm)

Councillor Alan Sitkin (Cabinet Member for Economic Regeneration and Business Development) introduced the report of the Director of Finance, Resources and Customer Services (No.69) setting out the preferred option for the Estate’s redevelopment and the establishment of a vehicle that would deliver these objectives.

NOTED

1.               That Report No.74 also referred as detailed in Minute No.24 below.

2.               That, Members welcomed the proposals for the redevelopment of the estate which would meet the Council’s objectives, as set out in the report.

3.               The proposal to demolish Unecol House for the reasons set out in the report.

Alternative Options Considered: NOTED, the detailed alternative options which had been considered as set out in full in section 5 of the report.

DECISION: The Cabinet agreed to

1.               Note the various options available for the use of the Montagu Industrial Estate and the economic and financial rationale for the establishment of a joint venture special purpose vehicle.

2.               Approve the redevelopment of the Montagu Industrial Estate for employment uses with the objective of securing wider economic and social regeneration benefits, as well as generating revenue funds for the Council to reinvest in Council services, and approved the demolition of Unecol House to facilitate the phased redevelopment of the Montagu Industrial Estate.

3.               Approve the establishment of a special purpose vehicle, joint venture limited liability partnership (LLP), to take forward the redevelopment of the estate and delegated authority to the Director of Finance, Resources and Customer Services in consultation with the Assistant Director (Legal and Governance Services) and the Cabinet Member for Finance and Efficiency to enter negotiations, finalise the terms and enter into agreements associated with establishing the special purpose vehicle.

4.               Approve the use of the Council’s real assets (property) located in the Montagu Estate to be used as an equity stake for the Council in the Joint Venture special purpose vehicle and delegated authority to the Director of Finance, Resources and Customer Services in consultation with the Cabinet Member for Finance and Efficiency, and the Cabinet Member for Economic Regeneration and Business Development to transfer these assets into the special purpose vehicle as and when required (subject to compliance with the Council’s Property Procedure Rules (PPRs)).

5.               Approve the procurement of a joint venture partner with which to form the special purpose vehicle and delegated authority to the Director of Finance, Resources and Customer Services in consultation with the Cabinet Member for Finance and Efficiency and, the Cabinet Member for Economic Regeneration and Business Development to enter into negotiations, finalise the terms and enter into agreement with the procured recommended development partner.

6.               Approve the addition to the Council’s capital programme to fund the creation of the special purpose vehicle that would manage the redevelopment of the Montagu Estate to be funded from borrowing as detailed in Report No.74, Minute No.24 below referred.

7.               Approve

(a)  The acquisition of land in the Estate subject to the Property Procedure Rules and delegated authority to the Director of Finance, Resources and Customer Services  ...  view the full minutes text for item 14