Agenda item - Living Wage Joint Venture Business Plan

Extract from the proceedings of the Special Housing & New Homes Committee meeting held on the 25 September, 2017; together with a report of the Executive Director for Economy, Environment & Culture (copies attached).

That Policy, Resources & Growth Committee:

(1)          Agree the Business Plan in Part 2 of the report and delegate authority to the Executive Director Economy, Environment and Culture to take all steps necessary to enable and facilitate the implementation of the Business Plan;

(2)          Agree that the joint venture should seek, within the constraints of the agreed business plan, to maximise the use of photo voltaic and other energy saving measures and that plans to achieve this should be reported to Housing & New Homes committee

(3)          Authorise the disposal of Former Belgrave Site Day (South Portslade Industrial Estate), Clarendon Place, Portslade (as shown in Appendix 1) by way of long leasehold and that delegated authority be given to the Executive Director Economy, Environment and Culture, Assistant Director of Property & Design and Executive Lead Officer Strategy, Governance & Law to agree terms and execute all legal documentation necessary to dispose of the site to the LWJV;

(4)          Authorise the disposal of Land north of Varley Halls, Coldean Lane, Brighton (as shown in Appendix 2) by way of long leasehold and that delegated authority be given to the Executive Director Economy, Environment and Culture, Assistant Director of Property & Design and Executive Lead Officer Strategy, Governance & Law to agree terms and execute all legal documentation necessary to dispose of the site to the LWJV;

(5)          Authorise the disposal of Land north west of Whitehawk, Brighton (as shown in Appendix 3) by way of long leasehold and that delegated authority be given to the Executive Director Economy, Environment and Culture, Assistant Director of Property & Design and Executive Lead Officer Strategy, Governance & Law to agree terms and execute all legal documentation necessary to dispose of the site to the LWJV;

(6)          Note the value for the disposals will accord with the valuations for each of the sites assessed by Savills and set out in Part 2 of the report;

(7)          Agree the capital receipts from the disposal of these sites are used for the council’s investment into the Living Wage Joint Venture;

(8)          Approve the inclusion of loans to the Living Wage Joint Venture within the Councils Capital Investment Programme in line with agreed drawdowns approved by the Living Wage Joint Venture Board;

(9)          Agree the appointment of the council’s representatives on the Board of the Limited Liability Partnership (LLP) and the Design & Build subsidiary company; and

(10)       Agree that a review be undertaken by the board into the model levels of maintenance costs after year 10 in the business model, with the outcome of this review to be reported to Housing & New Homes committee.

50.1      The Committee considered a report of the Executive Director, Economy, Environment & Culture that sought approval of the Living Wage Joint Venture Business Plan and other associated maters.

50.2      The Chair thanked all officers involved in the Business Plan for their efforts over a two year period, Hyde Housing for their commitment to the project and members of all parties on Housing & New Homes Committee who had engaged in a very lengthy debate on the proposals but had made them better for it.

50.3      Councillor Sykes stated that he was very supportive of the proposals and similarly praised colleagues on Housing & New Homes Committee. Councillor Sykes added that he hoped the venture could get underway as quickly as possible.

50.4      Councillor Bell stated his support for the proposal noting that his only concern was procedure and due diligence through the Joint Venture Board. Councillor Bell added that he hoped Hyde Housing land being offered in the near future.

50.5      The Executive Director, Economy, Environment & Culture replied that the business model allowed sites to be purchased be it from the council, on the open market or Hyde Housing and was an option available to the Joint Venture Board. With reference to due diligence, there would be representation on the Board by a member of each of the three political groups supported by officers and there were a number of reserved matters within the Terms of Reference for the Board where a decision would have be made thereon by PR&G Committee.

50.6      Councillor Yates enquired as to the process for re-appointment of Members to the Joint Venture Board.

50.7      The Executive Lead Officer, Strategy, Governance & Law clarified that the appointment was to an outside body so would follow the established constitutional process of appointment at either Annual Council or PR&G Committee outside that timeframe.

50.8      Councillor Yates moved a motion to amend recommendation 2.10 as shown in bold italics below:

2.10      Agree the appointment of the council’s representatives on the Board of the Limited Liability Partnership (LLP) and the Design & Build subsidiary company to be Councillor Meadows, Councillor Gibson and Councillor Mears.

50.9      The Chair formally seconded the motion.

50.10   The Chair put the motion to the vote which was agreed.

50.11   The Chair put the recommendations as amended to the vote that were agreed.

50.12   RESOLVED- That the Policy, Resources & Growth Committee:

1)           Agree the Business Plan in Part 2 of the report and delegate authority to the Executive Director Economy, Environment and Culture to take all steps necessary to enable and facilitate the implementation of the Business Plan;

2)           Agree that the joint venture should seek, within the constraints of the agreed business plan, to maximise the use of photo voltaic and other energy saving measures and that plans to achieve this should be reported to Housing & New Homes committee

3)           Authorise the disposal of Former Belgrave Site Day (South Portslade Industrial Estate), Clarendon Place, Portslade (as shown in Appendix 1) by way of long leasehold and that delegated authority be given to the Executive Director Economy, Environment and Culture, Assistant Director of Property & Design and Executive Lead Officer Strategy, Governance & Law to agree terms and execute all legal documentation necessary to dispose of the site to the LWJV;

4)           Authorise the disposal of Land north of Varley Halls, Coldean Lane, Brighton (as shown in Appendix 2) by way of long leasehold and that delegated authority be given to the Executive Director Economy, Environment and Culture, Assistant Director of Property & Design and Executive Lead Officer Strategy, Governance & Law to agree terms and execute all legal documentation necessary to dispose of the site to the LWJV;

5)           Authorise the disposal of Land north west of Whitehawk, Brighton (as shown in Appendix 3) by way of long leasehold and that delegated authority be given to the Executive Director Economy, Environment and Culture, Assistant Director of Property & Design and Executive Lead Officer Strategy, Governance & Law to agree terms and execute all legal documentation necessary to dispose of the site to the LWJV;

6)           Note the value for the disposals will accord with the valuations for each of the sites assessed by Savills and set out in Part 2 of the report;

7)           Agree the capital receipts from the disposal of these sites are used for the council’s investment into the Living Wage Joint Venture;

8)           Approve the inclusion of loans to the Living Wage Joint Venture within the Councils Capital Investment Programme in line with agreed drawdowns approved by the Living Wage Joint Venture Board;

9)           Agree the appointment of the council’s representatives on the Board of the Limited Liability Partnership (LLP) and the Design & Build subsidiary company to be Councillor Meadows, Councillor Gibson and Councillor Mears.

10)        Agree that a review be undertaken by the board into the model levels of maintenance costs after year 10 in the business model, with the outcome of this review to be reported to Housing & New Homes committee.