Decision details

Cabinet:

1.               Noted that Notting Hill Housing Trust will provide an indemnity for the Council’s CPO costs of £50 million should it not be possible to acquire properties by negotiation. These costs whilst initially born by NHHT through the CPO indemnity, will need to be covered in full by the JVLLP when drawn down for development or at a longstop date;

2.               Approved inclusion of this allocation within the proposed capital programme that will be considered by Cabinet on the same agenda in December 2017 and recommended to Council for final approval in February 2018.

3.               Approved the inclusion of the scheme with a budget allocation of a further £10 million to meet the Council’s equity contribution within the proposed capital programme that will be considered by Cabinet on the same agenda in December 2017 and recommended to Council for final approval in February 2018.

4.               Noted that a further report addressing the governance framework and staff resources will be required to develop and deliver the Rainham scheme and other economic development schemes will be presented for consideration and approval by Cabinet in January, 2018.

Subject to the approval of the required budget and funding at recommendation 1 above, that Cabinet:

5.               Agreed to establish a Limited Liability Partnership for the purpose of meeting the Council’s regeneration objectives for Rainham by entering into a Members’ Agreement with Notting Hill Commercial Property (“NHCP”) (company registration number 01523328) on the basis of the Business Case and the Legal Summary appended to the exempt agenda report. 

6.               Agreed to delegate to the Leader, after consultation with the Director of Neighbourhoods, the authority  to agree the name of the LLP, negotiate the final detailed terms of the agreements being entered into, and authority to agree that the Council enter into the following agreements:

·                 Members’ Agreement;

·                 Strategic Land Agreement;

·                 CPO Indemnity Agreement;

·                 Any ancillary agreements or documents necessary to give effect to the setting up of the JV LLP in accordance with this Report and its appendices (all as described in the Legal Summary appended to the exempt agenda report).

7.               Authorised the LLP to enter into the Development Management Agreement with Notting Hill Home Ownership, one of the Notting Hill group of companies, when in agreed form.

8.               Agreed to delegate to the Leader, after consultation with the Director of Neighbourhoods, authority to agree the terms of the Development Management Agreement referred to in recommendation 5 on behalf of the Council as Member of the LLP established in accordance with recommendations 3 and 4 above.

9.               Agreed to delegate to the Leader, after consultation with the Director of Neighbourhoods and the Section 151 Officer, authority to approve the first Overarching Business Plan of the LLP on behalf of the Council.

10.           Agreed to delegate to the Leader, after consultation with Cabinet Member for the Housing Company Development and OneSource Management and the Director of Neighbourhoods, authority to approve the consultation and communication plans for the regeneration of Rainham.

11.           Agreed to delegate to the Leader, after consultation with the Director of Neighbourhoods, the appointment of nominees to represent the  Council on the JVLLP board and indemnify them under the Local Authorities (Indemnities for Members and Officers) Order 2004 once the JVLLP has been set up;

12.           Agreed that the primary purpose of the Councils participation in the JV LLP is to secure the regeneration of the Rainham and Beam Park Housing Zone.