Report of Executive Director (Environment and Place) to follow

The Cabinet considered a joint report of the Executive Director (Environment and Place) and Executive Director (Finance and Resources) requesting that consideration be given to land transaction issues associated with Southend United Football Club.

The Chair agreed that this matter be taken as an urgent matter as the consortium was seeking a decision by Cabinet in advance of the proposed sale and purchase of the Southend United Football Club, proposed for completion on 17^th November 2023.

Resolved:

1. That it be noted that a future report detailing changes to the current contractual position will be required to facilitate the proposed sale and purchase of Southend United Football Club (SUFC) by the consortium.

2. That it be noted that the proposal is for the element of the development which would be subject to annuity leases to the Council to be consolidated at Fossetts Farm (with no element at Roots Hall) and that it is likely to comprise up to 911 apartments and up to 400 family homes (semi-detached, terraced and town-housing, not apartments).  As part of the land transaction, Cabinet will require 30% affordable housing to be achieved across the development (revised unit mix to be agreed).

3. That the development be designed specifically as a high quality build-to-rent community with ancillary and associated commercial and amenity provision with sizes and specifications of all accommodation aligned to the target rents.

4. That it be noted that the transaction will need to be structured in a way that viability can be tested at the time of funding, this is due to the relationship between construction cost, gilt rates (and therefore funding rates), market dynamics and rental levels.

5. That it be noted that new planning applications will need to be considered by the Council as Local Planning Authority in due course.

6. That, as part of the planning application, the Council requires the developer to achieve Passivhaus or equivalent sustainability credentials for any new housing which is to be leased by the Council.

7. That it be noted that the Council’s land holding at 291-297 Victoria Avenue, adjacent to Roots Hall is surplus to Council’s requirements and will no longer be required in connection with the linked transactions and may assist with the redevelopment and viability of Roots Hall. Therefore, the Executive Director (Finance and Resources) be instructed to carry out the relevant due diligence on the land and title to prepare the land for sale. 

8. That in relation to resolution 7 above, the agreement of the method and terms of sale be delegated to the Cabinet Member for Regulatory Services, in consultation with Executive Director (Finance and Resources).

9. That it be noted that the transfer of the Council’s interest in the land on which the SUFC Shop is situated at 299-301 Victoria Avenue will be dealt with, if required, under delegated authority.

10. That officers be requested to work with retained advisers to negotiate changes to the transactions with the aim of meeting the requirements of the council,  ...  view the full minutes text for item 54