The Leader and Cabinet Member with the Efficiency and Resources Portfolio introduced the report of the Managing Director (previously circulated) requesting that consideration be given to approving the establishment of a Joint Venture Company to provide the infrastructure build and sale of homes in Middleton St George, under the company name Middleton St George Joint Venture Limited.
The submitted report stated that a Joint Venture Company had already been established with Esh Homes Ltd to build and sell homes at Eastbourne; the site at Middleton St George was owned by a third party and the Joint Venture (JV) partner had negotiated terms to acquire the site with planning permission being obtained for the development of 55 homes; outlined the JV proposal; the two main areas of risk on the expected return; the financial implications; mitigations in place to minimise risk; outcome of consultation; and the legal advice received.
RESOLVED – (a) That the establishment of the Joint Venture Company to acquire land, deliver, build and sell up to 55 new private sale and affordable homes at Middleton St George, as detailed in the submitted report, be approved.
(b) That £4.7m from the Investment Fund, be approved, to fund the Joint Venture Company, financed by prudential borrowing, subject to a first Legal Charge in favour of the Council over the land acquired by the Joint Venture Company together with a Guarantee from the Joint Venture Partner in respect of 50 per cent of the loan sum.
(c) That the Joint Venture Agreement be approved and authority be delegated to the Managing Director to finalise the establishment of the Joint Venture Company in line with the terms, as set out in the submitted report, and supporting Development Appraisal and Cashflows annexed at Appendix 2 (Part III) of the submitted report.
(d) That the Assistant Director – Resources (CFO), the Assistant Director Housing and Building Services and the Assistant Director Law and Governance be appointed to act as directors in the Joint Venture Company as part of its Executive Board.
(e) That the Joint Venture be funded from prudential borrowing from the Capital Investment Fund.
REASONS – (a) To assist in the delivery of the Economic Strategy by speeding up the building of new homes.
(b) To assist in the delivery of the Housing Strategy by enabling the building of fifty houses for private sale and five affordable housing properties.
(c) To deliver income for the Council.