Issue - meetings

Medway Development Company Limited Update

 

 

Meeting: 10/04/2018 - Cabinet (Item 11)

11 Medway Development Company Ltd Update pdf icon PDF 135 KB

Minutes:

Background:

 

This report provided details of a proposal to amend the Articles of Association and governance arrangements for Medway Development Company (MDC) Ltd. to reflect the Teckal test. This would take advantage of tax efficiencies in the development of property.

 

The report stated that under the new arrangements MDC Ltd. would act as the Council’s managing agent in developing its owned sites and would provide the following services:

 

·         Potential site identified and high level appraisal and viability test;

·         Feasibility/ business case budget established and approved by MDC board;

·         Complete site surveys and develop planning drawings / tender documents;

·         Submit planning and tender the construction works; and

·         Tenders reviewed and approved by MDC board.

 

The report also set out the investment required to fund a five year programme. The report advised that the sum of £120 million would be met from borrowing and would require Full Council approval to be added to the Capital Programme. The report set out the consequential amendments to the Employee Delegation scheme, as set out in paragraph 8.3.1 and 9.2.2 of the report.

 

An Exempt Appendix to the report provided the proposed the project approval process and new governance structure and the Business Plan for MDC Ltd.

 

Decision number:

Decision:

69/2018

The Cabinet recommended to Full Council the addition to the capital programme of a facility for £120 million over the next 5 years to enable development.

70/2018

The Cabinet approved the amendments to the Medway Development Company Ltd (MDC) governance structure, as outlined in option 1 of the report and Exempt Appendix 1, to reflect the Teckal test and noted that Cabinet previously delegated authority to the Chief Legal Officer, in consultation with the Leader, to finalise the Articles of Association (decision no. 92/2017) and that Cabinet now approved the form of Articles of Association similar to that of MCG Ltd, as set out in Appendix 1 to the report.

71/2018

The Cabinet noted the draft Business Plan as set out in Exempt Appendix 2 to the report and agreed to delegate authority to the Chief Legal Officer, in consultation with the Leader, to approve the final version of the Business Plan.

72/2018

The Cabinet approved the amendments to the Employee Delegation Scheme as set out in paragraphs 8.3.1 and 9.2.2 of the report.

 

Reasons:

 

To enhance the generation of new and alternative investment returns for the Council and to deliver housing units principally in Medway.