Agenda item

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 in consultation with the Cabinet Member for Finance and Efficiency and, the Cabinet Member for Economic Regeneration and Business Development to negotiate and agree the final terms of the acquisition.

(b)  In principle the use of the Council’s compulsory purchase powers (CPO) to acquire such land that might be needed to facilitate the area’s redevelopment and agreed to the commencement of background work. Noting that negotiations would be conducted with landowners and a resolution to make the CPO would be brought back to Cabinet at an appropriate time.

8.               Approve and delegate responsibility to the Director of Finance, Resources and Customer Services to submit a planning application for demolition work at Unecol House and to obtain planning permission for the site’s future development.

9.               Delegate authority to the Director of Finance, Resources and Customer Services to demolish this building.

RECOMMENDED TO COUNCIL

1.               The addition to the Council’s capital programme to fund the acquisition of property on the Montagu Estate, which was to be funded from borrowing in the 2017/18 financial year.

2.               An addition to the capital programme for the demolition of Unecol House as set out in the report.

Reason: The detailed reasons for the above recommendations were set out in full in section 6 of the report.

(Key decision – reference number 4357)