Report of Executive Director (Environment and Place)

The Cabinet considered a report of the Executive Director (Environment and Place) setting out the latest position reached between the Council and Thames Plaza Plc and Citizen Housing LLP in relation to the proposed development of land at Fossetts Farm.

Resolved:

1. That the latest position in relation to Fossetts Farm following the sale of Southend United Football Club to COSU, be noted.

2. That the updated Heads of Terms for the Fossetts Agreement for Lease (AFL) as set out atConfidential Appendix 1 to the submitted report, be approved.

3. That officers proceed to enter into a new suite of agreements based on the Heads of Terms as set out at Confidential Appendix 1 to the report,including an updated AFL for housing at Fossetts Farm, noting that entering in to such an agreement will also release the Council from the AFL relating to Roots Hall.

4. That authority be delegated to the Executive Director (Finance and Resources), in consultation with the Leader of the Council, to agree any adjustments required to the transaction and to authorise the completion of the relevant documentation including the AFL, subject to:

A)   The completion of all due diligence (as referenced in 4.12 or this report and the link in that paragraph to the 29 April 2024 Cabinet Report) to the satisfaction of those to whom authority is delegated above.

B)   A pre-exchange condition that all Merseyside Pension Fund/CBRE approvals relating to the Club transaction and the AFL have been delivered

C)   The inclusion of satisfactory protections securing contributions to the redevelopment of SUFC Stadium at Roots Hall.

D)   The underwriting of all the Council’s costs relating to the transaction (referenced in 4.12 and in the Confidential Appendix 1).

E)   There being no remaining sums due to the Council under any accounts (rent/business rates etc) at the point of exchange of contracts.

Reasons for decision:

1.    To enable the proposed development to proceed by ensuring that the relevant documentation is in place in good time, with all suitable and necessary protections for the Council in place and subject to all necessary due diligence. such that the development can proceed when the funding market conditions enable it to be funded.

2.    To secure payments to the new owners of Southend United Football Club and to enable investment to refurbish and upgrade the stadium and facilities at Roots Hall.

Other options:

1. To opt not to proceed with the varied terms and to disengage in the negotiations. The exchanged AFL remains valid however this was proved with due diligence not to be viable and is no longer deliverable with the change in ownership of SUFC and the need to separate Roots Hall and Fossetts Farm to enable the stadium to be redeveloped at Roots Hall.

2. Support the principles but encourage the developer to find an alternative partner to take the built product. This is an option although the Council has previously agreed to take on this role and there is benefit  ...  view the full minutes text for item 56

The Committee received a report by the Executive Director (Environment & Place), by way of pre-Cabinet Scrutiny, that presented the latest position reached between the Council and Thames Plaza Plc and Citizen Housing LLP in relation to the proposed development of land at Fossetts Farm.

The Committee asked a number of questions which were responded to by the Executive Director for Environment & Place, the Cabinet Member for Regeneration, Major Projects and Regulatory Services and the Leader of the Council.

Councillor T Cox asked whether the previous due diligence undertaken (and thus ruled out the earlier iteration of April 2024) could be released to Group Leaders. In response, the Executive Director acknowledged that this request was outstanding and explained that he would investigate as to whether the executive summary document could be released in an appropriate format and would update outside of the meeting.

At 9.51pm the meeting briefly moved into exempt session to enable Councillors to ask questions on the confidential papers. The meeting then resumed in public session.

Members of the Committee welcomed the proposal of the low-rise development with 3- and 4-bedroom family homes.

The Committee thanked officers for all their hard work and expertise to get the scheme to fruition.

Resolved:

That the report to Cabinet be noted.

Note: This is and Executive Function

Cabinet Member: Councillor D Cowan (Leader of the Council) and Councillor K Robinson (Cabinet Member for Regeneration, Major Projects and Regulatory Services).