Agenda item
Medway Development Company Ltd Update
- Meeting of Cabinet, Tuesday, 22 September 2020 3.00pm (Item 9.)
- View the declarations of interest for item 9.
- View the background to item 9.
Minutes:
Background
This report updated the Cabinet, as shareholder, about the first five residential developments being progressed by the Medway Development Company Ltd (MDC) including Waterfront Chatham, Britton Farm, Garrison Point, White Road and Mountbatten House.
The report advised that the MDC Board had met on 6 August 2020 and 27 August 2020 to review the Business Plan and progress against it. The Board noted good progress had been made against the first five development sites and discussed the impact of the Covid-19 pandemic on the Company’s development programme. It suggested amendments that could be made to units to enable home working and reflected on property prices in the area.
The report also recommended that a new subsidiary be created to enable the company to own land and advised Cabinet about the production of Group Accounts in the future.
The report was accompanied by two exempt appendices. These set out MDC’s updated Business Plan and timeline of developments as well as details of funding, to date, for the first five MDC developments.
The Cabinet was advised that, as set out in section 8 of the report on page 234 of the agenda, the Cabinet and Council had previously agreed £120 million of borrowing to fund the Company’s initial five year programme. When the future need would arise to draw down funds to purchase further property, delegated authority would need to be put in place to agree this.
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Decision number: |
Decision: |
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The Cabinet noted the updates to progress against the Business Plan as set out in Exempt Appendix 1 to the report. |
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The Cabinet noted the investment made by Medway Development Company Ltd to date as set out in Exempt Appendix 2 to the report. |
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115/2020 |
The Cabinet approved the establishment and the Articles of Association of a new subsidiary of Medway Development Company Ltd to allow it to own land and transact with purchasers or tenants, as detailed in section 4 of the report and Appendix 1 to the report. |
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116/2020 |
The Cabinet agreed to delegate authority to the Chief Legal Officer, in consultation with the Portfolio Holder for Resources, to make the necessary amendments at Companies House to effect the changes agreed in decision 115/2020 above. |
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117/2020 |
The Cabinet agreed to commission Medway Development Company Ltd to project manage the Getting Building Fund projects at Britton Farm, Gillingham. |
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118/2020 |
The Cabinet agreed to part of the Upper Mount car park, Chatham being redeveloped as the affordable off-site provision for Mountbatten House, with the retention of the lower level car park spaces for continued public use, subject to planning permission being granted, as detailed in paragraph 3.12 of the report. |
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119/2020 |
The Cabinet agreed to delegate authority to the Chief Legal Officer as Corporate Client for Medway Development Company Ltd to ensure that Medway Development Company Ltd accounts are produced for consolidation in the Council’s accounts from this financial year (2020 - 2021). |
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 and to continue the regeneration of Gillingham High Street area, to create new Adult Education provision, new housing and to enhance the local streetscene.
Supporting documents:
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