There were no apologies for absence at this meeting.

The following Councillors declared interests, as indicated:

(a) Councillor Harp – Agenda Items 3 and 5 (Roots Hall and Fossetts Farm) – Disqualifying Pecuniary Interest – Season ticket holder at Southend United Football Club (withdrew);

(b) Councillor Jones – Agenda items 3 and 5 (Roots Hall and Fossetts Farm) – Non-pecuniary interest – member of Development Control Committee;

(c) Councillor Mulroney – Agenda items 3 and 5 (Roots Hall and Fossetts Farm) – Non-pecuniary interest – member of Development Control Committee;

(d) Councillor Terry - Agenda Items 3 and 5 (Roots Hall and Fossetts Farm) – Disqualifying Pecuniary Interest – Season ticket holder at Southend United Football Club (withdrew);

Report of Executive Director (Finance and Resources) to follow

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 10^th 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.

Resolved:-

That, under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the item of business set out below on the grounds that it involves the likely disclosure of exempt information as defined in Part 1 of Schedule 12A to the Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Appendix attached

The Cabinet considered a confidential appendix in relation to agenda item 3 above.

Resolved:

That the confidential appendix, be noted.

Note: This is an Executive Function

Referred direct to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Gilbert