Issue - meetings
Medway Development Company Ltd - Six Monthly Update
Meeting: 02/02/2021 - Cabinet (Item 15)
15 Medway Development Company Ltd Update 
PDF 2 MB
Minutes:
Background:
This report updated the Cabinet, as shareholder, about the first six residential developments being progressed by the Medway Development Company Ltd (MDC) and the Getting Building Fund project at Britton Farm, Gillingham. The six residential developments were Waterfront Chatham, Britton Farm, Garrison Point, White Road, Mountbatten House / Upper Mount and Queen Street.
The report also sought authority to loan funds to the newly created subsidiary Medway Development Company (Land and Projects) Limited (MDC(L&P) to enable the company to purchase land from the Council and advised the Cabinet about the level of financial risk of the overall venture.
The report was the fourth update report to the Cabinet as a shareholder of MDC, with the most recent update having been considered by Cabinet on 4 September 2020. A report had also been presented to the Cabinet on 15 December 2020 in relation to the Getting Building Fund. A recent Audit review of MDC had recommended six monthly reporting to the Cabinet and so for 2021 this report would be the first of two updates.
The report was accompanied by two exempt appendices. These set out details of funding to date for MDC projects and cashflow for MDC.
|
Decision number: |
Decision: |
|
The Cabinet noted the updates to progress on the six residential schemes, and the Getting Building Fund project, in particular the successful completion of the White Road scheme of 20 new homes.
|
|
|
|
The Cabinet noted the investment made by Medway Development Company Ltd to date as set out in Exempt Appendix 1 to the report.
|
|
|
The Cabinet noted the level of financial risk and reward environment in the cashflow at Exempt Appendix 2.
|
|
28/2021 |
The Cabinet agreed to provide loans at commercial rates to Medway Development Company (Land and Projects) Limited for the Waterfront Chatham and Garrison Point developments.
|
|
29/2021 |
The Cabinet agreed to delegate authority to the Chief Legal Officer in consultation with the Leader of the Council to agree and complete the necessary property transfers, loan agreements and any other legal documentation to provide the sites and funding for the Waterfront Chatham and Garrison Point developments to Medway Development Company (Land and Projects) Limited. |
Reasons:
To continue the regeneration of Chatham as Medway’s “city centre” with the provision of high quality riverside housing, public realm and an improved retail offer.