Issue - meetings

Joint Venture with Norse Property Services

 

 

Meeting: 10/04/2018 - Cabinet (Item 10)

10 Joint Venture with Norse Property Services - Establishment of a Housing Company pdf icon PDF 126 KB

Minutes:

Background:

 

This report provided details of a proposal to establish a housing company jointly with Norse Property Services (NPS). This housing company would develop property within Medway and in the first instance enable the development of an under-utilised car park in Rainham, which was owned by the Council.

 

The report evaluated four options including:

·         Option 1: Do nothing

·         Option 2: To develop the site through the Medway Development Company Limited (MDC)

·         Option 3: To sell the site on the open market to a developer

·         Option 4: Joint Venture with Norse Property Services

 

The report stated that under the preferred option, option 4 (Joint Venture with Norse Property Services), the Council would be required to provide the land and lend the joint venture company £1.352 million. The funding would be met from borrowing and would require Full Council approval to be added to the Capital Programme.

 

An Exempt Appendix to the report set out the Business Case for the preferred option, option 4 (Joint Venture with Norse Property Services).

 

Decision number:

Decision:

60/2018

The Cabinet approved the setting up of a joint venture company (option 4) based on the proposal set out in the exempt appendix.

61/2018

The Cabinet agreed the company will be called Medway Growth.

62/2018

The Cabinet agreed to exercise the role of shareholder.

63/2018

The Cabinet agreed to delegate authority to the Chief Legal Officer in consultation with the Leader to agree the Memorandum of Association and the Articles of Association. 

64/2018

The Cabinet noted the amounts required to be provided for in the Capital Programme and recommended to Full Council to approve the addition to the capital programme of £1.352 million, to be funded from borrowing, in order to make a loan to the joint venture company at the prevailing market interest rate.

65/2018

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.

66/2018

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 to the company in line with its Business Plan.

67/2018

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 and the Company.

68/2018

The Cabinet agreed to delegate authority to the Chief Executive to make the necessary appointments to the Executive Board of Directors, as set out in paragraph 4.3 of the report, in consultation with the Leader.

 

Reasons:

 

To enable the generation of new and alternative revenue income streams for the Council and to deliver housing units principally in Medway.