Issue - meetings

Housing Company

Meeting: 05/09/2017 - Cabinet (Item 6)

Minutes:

Background:

This report provided details of proposals to establish a housing company to maximise the opportunities to invest in or develop property within and outside Medway and in the first instance to enable the development of a number of Council-owned sites. The Cabinet had previously considered a report on 11 July 2017 which had set out proposals for the establishment of a housing company (decision nos. 69-74/2017 refer). Those decisions related, primarily, to the commissioning of a Business Case to assist Cabinet in deciding whether to pursue the proposal and also for relevant company documentation to be drafted for approval.

The report provided details of the Business Case, as set out in Exempt Appendix 1 to the report, and summarised in paragraph 3.4 of the report. The legal implications were set out in detail in Exempt Appendix 2 to the report.

An exempt addendum report was tabled at the meeting in respect of some revised information relating to the Business Case.

Decision number:	Decision:
89/2017	The Cabinet approved the Business Case at exempt Appendix 1 to the report including the revised information in the exempt addendum report, and the financial due diligence report at appendix 3 to the report.
90/2017	The Cabinet agreed the company will be called Medway Development Company Limited.
91/2017	The Cabinet agreed to exercise the role of shareholder.
92/2017	The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader, to finalise the Articles of Association in a form similar to those set out in Appendix 4 to the report.
93/2017	The Cabinet agreed to delegate authority to the Chief Finance Officer, in consultation with the Leader, to provide funding to the Company through state aid compliant loans, subject to appropriate due diligence to verify the Company’s on-going viability and the viability of projects for which the loans are being provided and loan agreements between the Council and the Company setting out pre-conditions for draw down as well as performance measurements.
	The Cabinet noted the amounts required to be provided for in the Capital Programme in respect of initial set up costs and loan funding.
94/2017	The Cabinet agreed to delegate authority to the Chief Finance Officer, in consultation with the Leader, to release funding to the Company for each agreed scheme in the Company’s Business Plan subject to financial due diligence and appropriate loan agreements.
95/2017	The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader, to identify, declare surplus and dispose of assets at commercial rates that are state aid compliant or to agree suitable equity arrangements that reflect commercial rates of return to the Council, to the company in line with its Business Plan.
96/2017	The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader, to execute the final legal agreements, contracts and all other ancillary documentation that may be needed prior to the setting up of a company setting out the arrangements between the Council ... view the full minutes text for item 6