Agenda item

A report from the Executive Director of Place is attached.  (Key decision – reference number 5463)

(This item 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).

Cllr Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place, providing an update on the progress of Meridian Water and seeking approval of the revised financial model and approval of delegations to proceed with marketing four parcels this year.

Cllr Caliskan commented that this was an exciting stage of the project, with a move from planning to homes being built and a lot happening on site, including creation of jobs in construction and the meanwhile activities. The choice had been made to continue with the momentum of the project and the improvement of the area, while getting value for money. Members were reassured that the aims and objectives of the project remained as proposed, and that local people were to be the principal beneficiaries. The Executive Director Resources confirmed that the financial model had been reviewed and had responded to the economic situation.

Members confirmed they had taken into account the exempt information set out in the Part 2 (Confidential) report also found on the agenda.

DECISION:  The Cabinet agreed to:

I.  Note the scheme progress to date, the concluding activities for Stage One of Meridian Water, and the actions taken by the Council to manage expenditure over the past year.

II.  Approve the 2023 financial model as the primary financial viability tool for the Meridian Water project.

III.  Note the allocation of historical costs in the model and to note the key assumptions and outputs that are included in the financial model baseline.

IV.  Note the financial metrics are a point in time.

V.  Delegate to the Director of Development (Meridian Water) to appoint advisors to work up a detailed delivery strategy for Meridian Four (M4), Teardrop (M13) and Meridian Seven (M7) to optimise the financial position of each parcel.

VI.  Delegate to the Portfolio Holder for Meridian Water approval to commence the marketing and procurement of the M13, M4 and M7 to seek development partners following detailed due diligence and soft market testing. The Portfolio holder report will contain development, financial and placemaking hurdles.

VII.  Agree a flexible marketing approach to the use, tenure, selected development partner and parcel packaging of Meridian Three.

VIII.  Approve the two-year capital expenditure budget as set out in Appendix 1 of the report, subject to approval of the new outline budget by Full Council in the next capital budget update.

IX.  Note the budget includes £4.4m for land purchase which will require further approval to spend.

X.  Delegate to the Executive Director of Place and Director of Finance Capital and Commercial approval of the £4.4m land purchase.

XI.  Note that, as a prudent measure, the Council will seek to increase its voluntary annual provision to repay Meridian Water debt from General Fund revenue (see para 143-145 of the report).

XII.  Note officers will bring a stage two development strategy report to Cabinet in Autumn 2023.

The report sets out the options considered, if any, and the reasons for the recommendations and the decision.

(Key decision – reference number 5463)