Issue - meetings

This report seeks approval for the addition of £4.410m to the capital programme, to deliver the next phase of essential infrastructure for the Rochester Riverside Development, funded through an interest free loan, through CLG’s Growing Places Funding.

Discussion:

This report provided details of a proposed addition of £4.410m to the capital programme, to deliver the next phase of essential infrastructure for the Rochester Riverside Development, funded through an interest free loan, through the Department for Comnunities and Local Government’s Growing Places Funding, following Cabinet’s initial consideration on 9 October 2012.

Councillor Jarrett, Portfolio Holder for Finance, supported by Councillor Rodney Chambers, the Leader of the Council, proposed the recommendations set out in the report.

Decision:

a)     The Council approved the proposed investment of £4,410,000 Growing Places Finance, to be repaid as per table 1.1, subject to the approval by the Homes and Communities Agency (HCA) Board on 31 October, confirming that any future capital receipts, (above and beyond the current priority repayment of £2.5m of prudential borrowing), be used to pay off Growing Places Funding (GPF) debt.

b)     The Council approved that it enter into a loan agreement with Essex County Council, as accountable body for Growing Places Funding.

c)      The Council approved that it enter into a variation of the Rochester Riverside Collaboration Agreement to ensure that the loan amount can be recouped from the proceeds of disposal, prior to the division of any surplus between the Council and the HCA.

Background:

This report sought approval for the addition of £4.410m to the capital programme, to deliver the next phase of essential infrastructure for the Rochester Riverside Development, funded through an interest free loan, through CLG’s Growing Places Funding.

The report examined three options for the delivery of the remaining land within Phase 1 of the development. In summary, this included releasing development opportunities to the market, with a requirement for developers to install site wide infrastructure for the remainder of Phase 1; further prudential borrowing; and, delivering site wide infrastructure for the remainder of Phase 1 through Growing Places Funding.

It was noted that Growing Places Funding was a programme of affordable loan finance, allocated by Local Economic Partnerships, to cash flow strategic investment in development opportunities. This is to enable the quicker delivery of developments, which might otherwise stall, enabling economic growth through creation of new jobs and homes.

The report noted that the bid for Rochester Riverside would enable the delivery of the next phase of infrastructure; providing fully serviced plots, sufficient for the next 7-8 years of anticipated development, reducing the risks and costs to developers and also the required percentage of developer profit, thus increasing the resulting obtainable land values from future market sales of development plots.

It was reported that the Rochester Riverside Project Board, comprising of Members from the Council and the Homes and Communities Agency (HCA), had considered and recommended this approach, subject to respective Council approval and approval by the HCA’s Board on 31 October 2012.

Reasons:

To facilitate the delivery of the next phase of essential infrastructure for the Rochester Riverside Development.