Agenda item

RESOLVED:

1.    That authority be delegated to the Cabinet Member for Property and Business Services; Acting Chief Executive and Chief Property Officer to finalise and enter into:

            a.        the JV contract documentation, as set out in the submitted Part 2 report, with Places for People Group (PfP);

            b.        conclude contract requirements for the provision of an operating lease within the parameters set out within the submitted Part 2 report;

2.    That the Investment Board:

            a.        commission the Joint Venture to undertake development opportunities and option analysis for the initial prioritised sites to be agreed by the Shareholder Board when setting the business plan, with future development opportunities following the same process;

            b.        formulate and present recommendations back to Cabinet for final approval of any development proposal or alternative future uses for the sites; and

            c.        review additional potential sites and commission feasibility proposals or options analysis for development proposals or alternative future uses of the sites;

3.    That it be noted that authority was delegated to the Shareholder Board (SB) to:

            a.        appoint nominated representatives to the Joint Venture Strategy Board;

            b.        appoint two nominated Council officers to be representatives of the Council on the Joint Venture Board to oversee and deliver the day to day activities of the joint venture vehicle;

            c.        approve the Annual Business Plan, Annual Accounts and other applicable control and management member matters of the Joint Venture entity; and its terms of reference have been amended accordingly.

Reasons for Decisions:

i.      These recommendations enable SCC to assist in enhancing economic prosperity within the County, through the delivery of mixed use development schemes, and potentially securing a long term revenue stream to the Council.

ii.     Entering into the proposed Joint Venture will provide SCC with an ability to secure the following objectives:

          (a)        establish a delivery model, which can act as an agent for economic growth and social activity, delivering housing and mixed use developments;

          (b)        create a focus for skills & training development and local employment opportunities;

          (c)        utilise its assets, ensuring efficiencies, site optimisation and achieving best value and allowing a pipeline of sites to be made available to the JV partner to ensure economies of scale and scope to the programme of activities;

          (d)        support delivery of key components of the Investment Strategy;

          (e)        secure a significant, pre-committed and long term partner able to bring capital and expertise to the region;

           (f)        support and benefit from wider collaborative opportunities through offering the vehicle to those public sector partners seeking a development delivery vehicle that satisfies their own corporate asset related objectives.

[The decisions on this item are subject to call in by the Corporate Services Select Committee]

Mrs Hazel Watson spoke to this item and put the following statements and questions:

·         Whilst it was good that this was an opportunity for the council to bring empty properties into use the report failed to meet needs of residents and safeguards and sought assurances

·         It was shrouded in secrecy and requested a list of land and properties, and their value, in the joint venture

·         What methodology was used to say a building was surplus to requirements and would there be consultation with local councillors and residents?

·         The key performance indicators were not contained in the report

·         What were the termination options and costs?

·         She was upset that there was no commitment to provide more than the minimum affordable housing.  The venture has missed an opportunity to provide affordable housing and home for those adults and children with SEND.

·         Also, would the council be seeking exemption under S123 of the Local Government Act 1972 to substantially boost the level of affordable homes built?

Mr Jonathan Essex then spoke to the item and put the following comments and questions:

·         This venture could provide unique opportunities depending on the detail of individual projects

·         That when considering the sustainability and equality outcomes for project that environmental and social sustainability also be considered as well as economic sustainability

·         He asked for clarification on the 50% of benefits mentioned in the report being shared with a partner.  Does this include the sustainability requirements as to take a lower cut for these may be a disincentive?

·         There was a need for this council to show leadership and insist on higher standards than other developers.

The Cabinet Member for Property & Business Services introduced the report and responded to some of the issues raised.  The report provided an update on activities undertaken in response to Central Government’s proposals to tackle the nationwide housing crisis, by unlocking sites for the construction of mixed use development schemes. Through utilising its own land and buildings, Surrey County Council (SCC) had the opportunity to unlock public land for redevelopment use, whilst also creating assets with income generating potential. In order to deliver this opportunity at scale and pace the Council has completed a procurement process for an external partner to deliver these benefits through a Joint Venture (JV).  Due to the commercial sensitivity of the contract award, the financial and commercial details were covered in a Part 2 report.

The Cabinet Member explained that a policy would be drawn up to cover environmental issues and that work was taking place with boroughs and districts to provide affordable housing.  Cabinet would receive a report in the New Year detailing the establishment of a Board which would include boroughs and districts and looking at properties.  Full engagement would take place with Members and the select committee would report back on its findings. 

He also explained the governance arrangements and how there would be six layers of oversight and how they would work and be interconnected.  The JV was one part of the delivery mechanism and a report to Cabinet in March 2018 would also look at resource for the growth of Halsey Garton which would be equally important in progressing projects at pace.  With regard to sites they could not be given as no agreement had been reached.  Before sites were announced the divisional Member would be asked for their input.  The proposed joint strategy board would include Member engagement and use their expertise as well as feed into the place agenda.

Cabinet Members described this project as a game changer and that boroughs and districts were glad of the assistance this would bring to helping them with their housing targets.  Praise was given to the Cabinet Member for Property & Business Services for his hard work in getting thus far in a relative short period of time.

RESOLVED:

1.    That authority be delegated to the Cabinet Member for Property and Business Services; Acting Chief Executive and Chief Property Officer to approve:

            a.        the JV contract documentation, as set out in the submitted Part 2 report, with Places for People Group (PfP);

            b.        conclude contract requirements for the provision of an operating lease within the parameters set out within the submitted Part 2 report;

2.    That the Investment Board:

            a.        commission the Joint Venture to undertake development opportunities and option analysis for the initial prioritised sites to be agreed by the Shareholder Board when setting the business plan, with future development opportunities following the same process;

            b.        formulate and present recommendations back to Cabinet for final approval of any development proposal or alternative future uses for the sites; and

            c.        review additional potential sites and commission feasibility proposals or options analysis for development proposals or alternative future uses of the sites;

3.    That it be noted that authority was delegated to the Shareholder Board (SB) to:

            a.        appoint nominated representatives to the Joint Venture Strategy Board;

            b.        appoint two nominated Council officers to be representatives of the Council on the Joint Venture Board to oversee and deliver the day to day activities of the joint venture vehicle;

            c.        approve the Annual Business Plan, Annual Accounts and other applicable control and management member matters of the Joint Venture entity; and its terms of reference have been amended accordingly.

Reasons for Decisions:

i.      These recommendations enable SCC to assist in enhancing economic prosperity within the County, through the delivery of mixed use development schemes, and potentially securing a long term revenue stream to the Council.

ii.     Entering into the proposed Joint Venture will provide SCC with an ability to secure the following objectives:

          (a)        establish a delivery model, which can act as an agent for economic growth and social activity, delivering housing and mixed use developments;

          (b)        create a focus for skills & training development and local employment opportunities;

          (c)        utilise its assets, ensuring efficiencies, site optimisation and achieving best value and allowing a pipeline of sites to be made available to the JV partner to ensure economies of scale and scope to the programme of activities;

          (d)        support delivery of key components of the Investment Strategy;

          (e)        secure a significant, pre-committed and long term partner able to bring capital and expertise to the region;

           (f)        support and benefit from wider collaborative opportunities through offering the vehicle to those public sector partners seeking a development delivery vehicle that satisfies their own corporate asset related objectives.

[The decisions on this item are subject to call in by the Corporate Services Select Committee]