Cabinet Agenda Item No. 3 refers

Referred direct to the Policy and Resources Scrutiny Committee

Report of Executive Director (Finance and Resources) to follow

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 use of all capital and revenue income from the developments and in particular the holding of reserves to ensure that the Council’s long-term position is protected.

5. That it be noted that the authority to complete the following Trust matters will be separately considered by Full Council (acting as sole trustee of the three relevant trusts) and any necessary Charity Commission consents will also need to be obtained:

a)  the proposed easement over Jones Memorial Ground Trust land relating to the ‘Supporters’ Way’ access from Sutton Road and ancillary access to Fossetts Farm residential development;

b)  the lease agreement required in relation to replacement parking for Jones Memorial Ground;

c)   the minor boundary adjustment to Victory Sports Ground to accommodate the required highways changes on the Sutton Road/Eastern Avenue roundabout; and

d)  a shared use agreement between the Youth Commemoration Ground Trust and the Loxford Trust to enable the release of the former Cecil Jones Junior School playing field land to the north of the Jones Memorial Ground (subject to the agreement of the Secretary of State for Education and the Charity Commission which the Loxford Trust may require).

(The decisions for the Council as Trustee, set out above, need to be taken in the best interests of each Trust.  This requirement should be met as the arrangements will enable the development and generation of capital and long-term income for the Trusts to help support their objectives).”

Note: This is an Executive Function

Cabinet Member: Councillor I Gilbert