Decision details

Cabinet noted that the financial figure in the third bullet point of Recommendation 3 should read £175,000.

Having considered the confidential appendix, it was

RESOLVED:  That

(1)          Option 1 be approved as the most financially prudent route for the use of the 53  Private Sector Rented (PRS) units at Gayton Road (paragraph 2.3.8 refers);

(2)          the use of Concilium Assets LLP (LLP) as the Council’s Private Rented Stock investment vehicle to operate the 53 Gayton Road PRS units be approved;

(3)          authority be delegated to the Director of Finance, following consultation with the Portfolio Holders for Regeneration, Planning &  Employment and Finance &  Resources:

·           to make the arrangements for the allocation of Members Capital, set at a nominal value of £100 (paragraph 2.7.3 refers);

·           to set an interim budget with the Board of the LLP pending the submission of the Business Plan;

·           to make arrangements for a loan,  at a commercial rate, to the LLP,  capped at £175,000, governed by a loan agreement (paragraph 2.7.5 refers);

·           to take all other actions required on behalf of the Council to ensure that the LLP was operational and able to administer the 53 Gayton Road units, including the approval of any relevant reserved matters under the LLP Members Agreement;

(4)          authority be delegated to the Corporate Director, Community, following consultation with the Director of Legal & Governance, to authorise the form and grant of the underlease of the Gayton Road PRS units from the Council to the LLP;

(5)          authority be delegated to the Corporate Director of Community, following consultation with the Director of Legal and Governance, to approve the use and letting, to include a letting at less than best consideration, of the ground floor community and commercial space in the Gayton Road PRS block.

Reasons for Decision:  On the 17 September 2015, Cabinet approved proposals for the development of land at Gayton Road which included the offer from Fairview New Homes PLC to build out the 53 PRS units on behalf of the Council in lieu of a receipt to the Council for its land.  The Council’s 53 PRS units are nearing completion of construction.  The units were originally intended for letting on the private rental market by the Council’s investment vehicle, Concilium Assets LLP.  Acknowledging that the Council’s original intention was three years ago and both the Council’s internal and external environment has moved on, it is considered prudent that the Council review the options available for the units to ensure the most financially prudent route is secured.

Alternative Options Considered and Rejected:  As set out in the report.

Conflict of Interest relating to the matter declared by Cabinet Member/Dispensation Granted:  None.