Decision details

Procurement of a development partner to establish a housing joint venture vehicle in relation to Watermeadow Court and Edith Summerskill House sites.

1.      That an OJEU compliant procurement exercise using the negotiated procedure to select a Private Sector Partner (PSP) to establish a housing and regeneration Joint Venture Vehicle (JVV), and that a further report be submitted to Cabinet with a recommendation regarding the preferred partner including details of the JVV structure, financial implications and governance arrangements, be approved.

2.    That authority be delegated to the Cabinet Member for Housing in conjunction with the Executive Director of Housing and Regeneration and the Executive Director of Finance and Corporate Governance to make decisions during the procurement process in order to identify a preferred PSP and to negotiate the terms for establishing a JVV, be approved.

3.    That Cabinet notes that Watermeadow Court and Edith Summerskill House are proposed to be transferred to the JVV (once established) to be redeveloped for housing, following the satisfaction of certain pre-conditions, including:

·         obtaining satisfactory planning consents for those sites

·         securing best consideration; and

·         where relevant, disposal being subject to the Secretary of State’s approval.

·         finalisation of the other financial and tax arrangements

4.    That Cabinet notes:

·         its previous approval of the appointment of Lambert Smith Hampton (LSH) as the property and commercial advisors at the cost of £94,600 funded from Section 106 balances.

·         that the Director of Law has agreed the appointment of Eversheds LLP via delegated authority as the legal advisors in relation to this project.

5.      That Cabinet approves expenditure of up to:

·         an additional £40,000 for property and commercial advice from LSH and £162,385 for property and procurement related legal work to be undertaken by Eversheds

·         £35,000 to appoint WYG Management Services Ltd to undertake technical surveys on the selected sites

·         £75,000 to appoint accountants to provide tax and financial advice on the structure of the JVV

·         £50,000 to undertake financial due diligence at the final stages of the partner selection

·         together with a contingency of circa £43,015, providing an overall budget for the Professional Team of £500,000.

And to note the use of staff resources as specified in section 3 of the report. All expenditure to be funded from the Decent Neighbourhoods Fund where it is possible to be capitalised or where possible held as a deferred cost of disposal; and from previously approved Section 106 balances in the case of revenue expenditure save for the potential net revenue risk of £128,000 which would be funded by the Housing Revenue Account as an additional charge to the 2013/14 budget.

6.      That approval be given to draw down £350k from the Westfield Section 106  pot and £57k from the BBC Key Worker Section 106 pot to fund the costs of external expertise including legal, finance and feasibility work to advance the Council’s programme of regeneration

7.      That approval be given to appropriate Watermeadow Court, which is currently held as Housing Revenue Account land, as land held for planning purposes under Section 122 of the Local Government Act 1972, thereby transferring it to the General Fund at £7.5m; including necessary approval to seek consent from the Secretary of State for Communities and Local Government to appropriate the land as required by the Housing Act 1985.

8.      That, subject to planning permission, approval is given to demolish Watermeadow Court, on a block by block basis, as vacant possession is achieved.

9.      That approval be given for expenditure of up to £700,000 (to be funded from the Decent Neighbourhoods Fund) for planning and demolition costs relating to Watermeadow Court; and that authority be delegated to the Cabinet Member for Housing, in conjunction with the Executive Director of Housing and Regeneration, to appoint, through appropriate procurement routes, a design team (to secure necessary planning consents) and a demolition contractor.