A report from the Director of Finance, Resources and Customer Services is attached. This should be read in conjunction with Report No.69, agenda part one refers. (Key decision – reference number 4357)
(Report No.74)
(This document contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person – including the authority holding that information) of Schedule 12A to the Local Government Act 1972, as amended)
Minutes:
Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) introduced the report of the Director of Finance, Resources and Customer Services (No.74).
NOTED
1. That Report No.69 also referred, as detailed in Minute No.14 above.
2. The financial overview of the proposals as set out in section 4 of the report.
3. The resulting benefits arising from the demolition of Unecol House as set out in the report.
4. The legal and financial implications of the respective delivery mechanisms and the reasons for the recommended option, as detailed in the report.
5. In response to a question raised by Councillor Brett the details set out in paragraph 4.41 of the report were explained and clarified to Members.
Alternative Options Considered: As detailed in Report No.69, Minute No.14 above referred.
DECISION: The Cabinet agreed to (as also detailed in the recommendations of Report No.69, Minute No.14 above refers):
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 approve 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 LLP, to take forward the redevelopment of the estate and delegate 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).
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 of the sum detailed in recommendation 2.6 of the report, 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 section 8.1. of the report with the specified sum to be allocated in 2016/17; the specified sum in 2017/18; a specified sum per annum for three years from 2017/18 (recommendation 2.6 of the report set out the specified sums for agreement).
7. Approve
(a) The acquisition of land in the Estate subject to the Property Procedure Rules and delegate 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 and
(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 authority 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 of the sum specified in recommendation 2.7 of the report, to the Council’s capital programme to fund the acquisition of property on the Montagu Estate, which would be funded from borrowing in the 2017/18 financial year.
2. The additional sum, set out in recommendation 2.11 of the report, to the Capital Programme for the demolition of Unecol House as detailed in the report.
Reason: As detailed in Report No.69, Minute No.14 above referred.
(Key decision – reference number 4357)
Supporting documents: