Issue - meetings

The Assistant Director, Regeneration and Asset Management to present a report which refines the proposal to establish a housing development company, as approved in principal by Executive in March, explains the key work undertaken to date and seeks approval for the core vision and scope of the Programme, as well as approval to resource the next steps.

Resolved:  (i)      That the core vision and scope of the programme be approved, with each site to be considered for development through a detailed site development business case.

                   (ii)      That the establishment of a company wholly owned by the council, for the purpose of residential development, be approved, noting the timescales associated with this process.

                   (iii)     That the development company be added to the scope and responsibilities of the existing Shareholder Committee.

                   (iv)     That a financial resource allocation be approved as set out in paragraphs 28 and 29 of the report, for external design, cost consultant, legal and financial advice, and to enable the appointment of a suitably qualified and experienced interim Managing Director for up to 12 months, to assist in the formation of a development company and in the production of a five year business plan.

                   (v)     That the recruitment decision and remuneration package for the interim Managing Director be delegated to the Leader and Deputy Leader of the Council, in consultation with the Corporate Director of Health, Housing & Adult Social Care and the Corporate Director of Economy & Place.

                   (vi)     That the steps required to fully investigate the potential to deliver sites through a development agreement with a partner or partners be noted.

                   (vii)    That it be noted that a framework for the development partner agreement will be produced and brought to the Executive for approval prior to starting the formal procurement process.

Reason:     To progress with the building of much needed new homes in the city.

The Assistant Director, Regeneration and Asset Management presented a report which refined the proposal to establish a housing development company, as approved in principle by the Executive in March, explained the key work undertaken to date and sought approval for the core vision and to resource the next steps.

The core aims of the Housing Delivery Programme were to accelerate the delivery of increased housing in the city across a range of tenures and to generate a financial return to the council.  A council-led approach could fulfil a number of key social, environmental and economic policy objectives, helping to meet the housing needs of a greater range of people than was currently possible through the Housing Revenue Account (HRA) and providing more affordable housing than required by planning policy.  Each development would consist of a mix of market and affordable housing, both for sale and for rent. A site development business case would be produced for each proposed site. Approval was sought for the proposed scope of the programme and initial sites, as set out in paragraph 14 of the report.

Legal advice had confirmed that the most robust and appropriate approach was for the council to act through a development company limited by shares.  It was proposed that the existing Shareholder Committee act as the Shareholder Board of the company and that an Interim Managing Director be appointed as soon as possible to guide the council through the process of establishing the company and creation of a five year business plan.  With regard to the £450k project costs set out in paragraph 26,  £160k would come from grant funding and it was proposed that £100k be allocated from the HRA and £190k from the Venture Fund, as detailed in paragraphs 28 and 29.

Members expressed broad approval for the proposals and the proactive view being taken to increase housing provision in the city.  The Leader stressed the need for the council to ensure that it maintained a proper oversight of all projects within the programme.

Resolved:  (i)      That the core vision and scope of the programme be approved, with each site to be considered for development through a detailed site development business case.

                   (ii)      That the establishment of a company wholly owned by the council, for the purpose of residential development, be approved, noting the timescales associated with this process.

                   (iii)     That the development company be added to the scope and responsibilities of the existing Shareholder Committee.

                   (iv)    That a financial resource allocation be approved as set out in paragraphs 28 and 29 of the report, for external design, cost consultant, legal and financial advice, and to enable the appointment of a suitably qualified and experienced interim Managing Director for up to 12 months, to assist in the formation of a development company and in the production of a five year business plan.

                   (v)     That the recruitment decision and remuneration package for the interim Managing Director be delegated to the Leader and Deputy Leader of the Council,  ...  view the full minutes text for item 100