33 Establishing a council owned delivery vehicle PDF 178 KB
To consider the report of the acting deputy chief executive - place.
Additional documents:
Minutes:
Cabinet considered the report of the acting deputy chief executive – place. This sought agreement to develop a business case to establish a wholly owned holding company/vehicle to focus on public sector intervention to deliver a wide range of regeneration and community benefits.
The Cabinet member for development and regeneration reported that it was commonplace for councils to establish such delivery vehicles to support wider community benefit. Legal advice had been sought on the steps to progress the establishment of a delivery vehicle company and the Cabinet member recommended that these steps were followed. The vehicle would have the ability to deliver a range of projects, including truly affordable housing at social rent level, that met the council’s aspirations around zero carbon/carbon neutral developments.
The strategic property review that was underway provided an opportunity to identify pieces of land which the council could seek to transfer to the vehicle to deliver regeneration projects. These projects could include affordable housing delivery, but also commercial and community facilities, such as community hubs, land maintenance and management, and health facilities.
The options open to Cabinet were to:
1. choose not to establish such a delivery vehicle—Cabinet considered that this could hinder the council’s ability to address its emerging corporate plan ambitions such as “providing the homes people need” “improving health and jobs” and “dealing with the climate emergency”.
2. choose to establish a delivery vehicle primarily focused on making a financial return—Cabinet dismissed this option as the Local Government Association had advised against this approach.
3. establish a joint vehicle with Vale of White Horse District Council—having taken legal advice, Cabinet believed it would be simpler for the council to progress with the establishment of the vehicle without having to wait for agreement from the another council, and it also provided greater transparency and traceability of each council’s own investment along with greater flexibility.
4. establish one company with a series of sub-companies for particular themes or projects—Cabinet did not consider this was necessary at the outset, but could be relevant as projects came forward.
Cabinet supported the proposal to develop a business case. This delivery vehicle was not purely to make a profit or to delivery affordable housing, it was to provide greater regeneration and community benefits. There would need to be clarity what was being asked of the company.
RESOLVED: to agree that, subject to the decision of Council on 8 October 2020 in relation to the establishment of an appropriate budget, to progress the development of a business case setting out the rationale for the setting up of a council-owned delivery vehicle, to focus on public sector intervention to achieve desired goals to deliver a wide range of regeneration and community benefits.