Issue - meetings

Roots Hall and Fossetts Farm Land Transactions

Meeting: 26/11/2020 - Policy and Resources Scrutiny Committee (Item 588)

588 Roots Hall and Fossetts Farm pdf icon PDF 8 MB

Cabinet Agenda Item No. 3 refers

Referred direct to the Policy and Resources Scrutiny Committee

Report of Executive Director (Finance and Resources) to follow

Additional documents:

Minutes:

The Committee considered Minute 574 of the meeting of the Cabinet held on 24 November 2020, which had been referred direct to the Policy and Resources Scrutiny Committee, together with a report of the Executive Director (Finance and Resources) providing an update on the proposed development of housing for rent at Roots Hall and at Fossetts Farm.

 

The Leader of the Council undertook to provide a written response to a question with regard to discussions that had previously been held with Rochford District Council and/or Essex County Council in relation to any proposed housing development at Fossetts Farm.

 

Resolved:

 

1.          That the following decisions of the Cabinet be noted:

 

“1. That authority be given to enter into all necessary transactions to facilitate the developments at Roots Hall and Fossetts Farm, as set out in the submitted report, subject to the following pre-conditions:

 

(a) The submission of due diligence reports on the following matters which are satisfactory to the Executive Director of Finance and Resources in consultation with the Leader of the Council:

 

i)    Independent financial review;

ii)   Review by the Council’s external auditors;

iii)  Property report by Cushman Wakefield;

iv)  Legal report by Gowling WLG; and

 

(b) The developer reimbursing the Council the sum of £100,000 in respect of certain costs incurred to date (further costs will be reimbursed to the Council as development costs as the developments progress).

           

2. That the transactions referred to in resolution 1 above will not become unconditional until:

 

i) Planning Permission (including 30% affordable housing and the resolution of any required highway matters) has been granted for the developments at both Roots Hall and Fossetts Farm; and

 

ii) The necessary Charity Commission consents have been obtained in respect of the matters involving Jones Memorial Trust, Youth Commemoration Ground Trust and the Victory Sports Ground Trust

 

3. That the income strip leases for the Roots Hall and Fossetts Farm developments (each comprising a series of land transactions) be granted directly to the Council with the options to acquire the freehold reversions for £1 being granted to the Council’s Housing Investment Company to ensure that the transaction is tax effective fundable at the optimal rate and the reversionary interests are suitably protected.

 

4. That authority be granted to the Executive Director of Finance and Resources in consultation with the Leader of the Council to:

 

(a) Agree any final adjustments to the terms of the transactions, or the final documentation, including any adjustments required as a consequence of the due diligence reviews;

(b) Authorise the completion of all necessary agreements to progress the transaction including but not limited to the sale of the Council’s land at both Roots Hall and Fossetts Farm, the leases in and the options to acquire the freeholds at the end of the leases;

(c) Authorise any necessary management and contracting arrangements for the new affordable and private rented accommodation.  (Note: long-term property management has been considered but does not need to be concluded at this stage); and

(d) Agree the  ...  view the full minutes text for item 588


Meeting: 24/11/2020 - Cabinet (Item 574)

574 Roots Hall and Fossetts Farm pdf icon PDF 8 MB

Report of Executive Director (Finance and Resources) to follow

Additional documents:

Minutes:

The Cabinet considered a report of the Executive Director (Finance and Resources) providing an update on the proposed development of housing for rent at both Roots Hall and Fossetts Farm.

 

The report highlighted that in order for the developments to proceed, decisions would also separately need to be made by all members of the Council in their capacity as Trustees of the Jones Memorial Trust, Youth Commemoration Ground Trust and the Victory Sports Ground Trust. A separate report on the Trust matters would be submitted to the next meeting of Council on 10th December 2020.

 

Resolved:

 

1. That authority be given to enter into all necessary transactions to facilitate the developments at Roots Hall and Fossetts Farm, as set out in the submitted report, subject to the following pre-conditions:

 

(a) The submission of due diligence reports on the following matters which are satisfactory to the Executive Director of Finance and Resources in consultation with the Leader of the Council:

 

i)    Independent financial review;

ii)   Review by the Council’s external auditors;

iii)  Property report by Cushman Wakefield;

iv)  Legal report by Gowling WLG; and

 

(b) The developer reimbursing the Council the sum of £100,000 in respect of certain costs incurred to date (further costs will be reimbursed to the Council as development costs as the developments progress).

           

2. That the transactions referred to in resolution 1 above will not become unconditional until:

 

i) Planning Permission (including 30% affordable housing and the resolution of any required highway matters) has been granted for the developments at both Roots Hall and Fossetts Farm; and

 

ii) The necessary Charity Commission consents have been obtained in respect of the matters involving Jones Memorial Trust, Youth Commemoration Ground Trust and the Victory Sports Ground Trust

 

3. That the income strip leases for the Roots Hall and Fossetts Farm developments (each comprising a series of land transactions) be granted directly to the Council with the options to acquire the freehold reversions for £1 being granted to the Council’s Housing Investment Company to ensure that the transaction is tax effective fundable at the optimal rate and the reversionary interests are suitably protected.

 

4. That authority be granted to the Executive Director of Finance and Resources in consultation with the Leader of the Council to:

 

(a) Agree any final adjustments to the terms of the transactions, or the final documentation, including any adjustments required as a consequence of the due diligence reviews;

(b) Authorise the completion of all necessary agreements to progress the transactions including but not limited to the sale of the Council’s land at both Roots Hall and Fossetts Farm, the leases and the options to acquire the freeholds at the end of the leases;

(c) Authorise any necessary management and contracting arrangements for the new affordable and private rented accommodation.  (Note: long-term property management has been considered but does not need to be concluded at this stage); and

(d) Agree the use of all capital and revenue income from the developments and  ...  view the full minutes text for item 574


 

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