Agenda item

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 SPV that will manage the redevelopment of the Montagu Estate to be funded from Borrowing as detailed in the Part 2 report.

7.              To approve as recommended to Council by Cabinet the addition to the Council’s capital programme to fund the acquisition of property on the Montagu Estate, which is to be funded from Borrowing in the 2017/18 financial year.

8.              To note that Cabinet had approved:

(a) The acquisition of land in the Estate subject to the PPRs and delegates authority to the Director of Finance, Resources and Customer Services (FRCS) 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 may be needed to facilitate the area’s redevelopment and agrees to the commencement of background work. Noting that negotiations will be conducted with landowners and a resolution to make the CPO will be brought back to Cabinet at an appropriate time.

9.              To note that Cabinet had approved and delegated 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.

10.           To note that Cabinet had approved the delegated authority to the Director of Finance, Resources and Customer Services to demolish this building.

11.           To approve as recommended by Cabinet an addition to the Capital Programme for the demolition of Unecol House as detailed in the report.