Agenda and draft minutes

Strategic Investment Board
Wednesday, 30 October 2019 10.00 am

Venue: County Hall, Kingston upon Thames, Surrey KT1 2DN

Contact: Angela Guest, Democratic Services Officer  020 8541 9075 Email: angela.guest@surreycc.gov.uk

Items
No. Item

13.

Apologies for Absence

14.

Minutes of the Previous Meeting - 25 June 2019 pdf icon PDF 66 KB

15.

Declarations of Interest

    All Members present are required to declare, at this point in the meeting or as soon as possible thereafter

    (i)            Any disclosable pecuniary interests and / or

    (ii)           Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting

    NOTES:

    • Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest
    • As well as an interest of the Member, this includes any interest, of which the Member is aware, that relates to the Member’s spouse or civil partner (or any person with whom the Member is living as a spouse or civil partner)
    • Members with a significant personal interest may participate in the discussion and vote on that matter unless that interest could be reasonably regarded as prejudicial.

     

    Minutes:

    There were none.

     

16.

South Ridge Development (SRD) LLP - Development Funding pdf icon PDF 77 KB

    The Council has entered into a Limited Liability Partnership (LLP) with Places for People (PfP). The purpose of the LLP is to undertake developments within the County of Surrey and the surrounding area over an initial term of 15 years, with an option to extend for a further five years.

     

    This report considers funding arrangements for the initial developments and in conjunction with the Part 2 report, demonstrates why the Council part financing the first phase of developments will deliver best value to our residents.

     

    NB: There is a Part 2 annex at Item 7.

     

    [The decisions on this item can be called in by the Resources & Performance Select Committee]

    Minutes:

    The Board considered a report that set out funding arrangements for initial developments and in conjunction with the Part 2 report, demonstrated why Council part financing of the first phase of developments would deliver best value to residents.  Due to the commercial sensitivity of the funding arrangements, the financial and commercial details were covered in the Part 2 report.

     

    Officers responded to Members detailed questions around risk, modelling, indicative rates and benefits to the council

     

    RESOLVED:

     

    1.    That the Council should in principle seek to provide development funding to South Ridge Development Limited Liability Partnership (LLP)  at up to 50% of the total requirement, subject to approved Site Development Plans (SDPs) was agreed.

     

    2.    That actions are put in place to draw up a development funding agreement, including seeking external legal advice at an estimated cost of up to £10,000 was agreed.

     

    Reason for decision:

     

    The funding will enable the Limited Liability Partnership (LLP)  to carry out development activity in line with the objectives agreed with the Council which include:

                   To accelerate growth in terms of housing completion and jobs on Council owned assets

                   To ensure that the LLP works to the benefit of all Surrey residents in terms of outcomes;

                   To create profitable and transparent relationships with commercial enterprises which deliver financial and regeneration benefits;

                   To capture financial benefits and the opportunities available to a dedicated delivery vehicle that can benefit from agile operating arrangements

                   To maximise development and minimise risk to the Council by providing dedicated delivery arrangements and property and commercial expertise, bring scale and pace to the programme.

     

    Mr Tim Oliver left the meeting during discussion at 10.08am, for four minutes.

17.

Disposal of an asset in the Mole Valley area pdf icon PDF 85 KB

    To approve the sale of a Site in Mole Valley as detailed in the Part 2 report.

     

    NB: There is a Part 2 annex at Item 8.

     

    [The decisions on this item can be called in by the Resources & Performance Select Committee]

    Minutes:

    The Board considered a report that described how terms had been agreed for the sale by Surrey County Council (SCC) of an asset in the Mole Valley District.  Exempt details were contained in a Part 2 report.

     

    In response to Member questions officers confirmed that:

    ·         engagement with Homes England had been tried

    ·         overage provision was contained in the Part 2 report

    ·         the council would retain ownership of Park Lodge

    ·         the council would retain access rights to the building

     

    The Leader asked to be notified when this sale was to be made public.

     

    RESOLVED:

    The sale of an Asset in Mole Valley was approved.

    Reason for Decision:

     

    After a number of rounds of negotiation, as set out in the Part 2 report. This was considered to be the absolute maximum that a purchaser would be prepared to pay for the site.

    The price was comfortably in excess of the optimal mixed use development scenario, which was appraised by Knight Frank LLP.

    The price was comfortably in excess of the current asset assessed by Montagu Evans March 2019.

     

18.

Exclusion of the Public

    That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.

     

    Minutes:

    RESOLVED: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during conversation of the following items of business on the grounds that they involve the likely disclosure of exempt information under paragraph 1 of Part 1 of Schedule 12A of the Act.

     

19.

South Ridge Development (SRD) LLP - Development Funding

Minutes:

The Board considered a Part 2 report that contained information which was exempt from Access to Information requirements by virtue of paragraph 3 – Information relating to the financial or business affairs of any particular person (including commercially sensitive information to the bidding companies).

 

RESOLVED:

 

See Minute 16/19.

 

Reason for decision:

 

See [Exempt Minute E-14-19].

20.

Disposal of an asset in the Mole Valley area

Minutes:

The Board considered a Part 2 report that contained information which was exempt from Access to Information requirements by virtue of paragraph 3 – Information relating to the financial or business affairs of any particular person (including commercially sensitive information to the bidding companies).

 

RESOLVED:

 

See [Exempt Minute E-15-19].

 

Reason for Decision:

 

See [Exempt Minute E-15-19].

 

21.

Publicity for Part 2 Items