Report attached.

Exempt report and appendix not available to press or public.

Cabinet:

1.       Approved the Mercury Land Holdings Limited Business Plan 2020/21 (Contained with the Appendices to Exempt Agenda)

2.       Agreed to delegate authority to the Leader of the Council, after consultation with the s151 Officer, the Director of Regeneration Programme Delivery and the Director of Legal and Governance, to approve the detailed business cases, related viability assessments and funding requirement for the individual schemes noted within the Business Plan as they may be presented during the business plan period in order to enable them to proceed.

3.       Agreed in principle to provide additional gross investment of £92.6m capital funding to MLH up to a maximum of £228 million (effective from 2020/21) in respect of projects contained in Exempt Agenda through a combination of equity investment and state aid compliant loans subject to detailed approved business cases made under delegated authority in recommendation 2 above.

4.       Agreed to delegate authority to the S151 Officer to agree, after consultation with the Director of Legal and Governance, the completion of all relevant agreements and appointments of relevant professionals relating to the provision of debt finance by the Council to MLH. 

5.       Agreed to delegate to the S151 Officer, following consultation with the Director of Asset Management, and the Director of Legal and Governance, the authority to determine the principles and processes by which any assets shall be disposed of and the terms of disposal to MLH.

Cabinet noted that Mercury Land Holdings was set up in 2015 and was created to support the provision of the housing supplying in Havering. When the original Year 1 Business Plan was agreed it was on the condition that there would be annual reviews and changes to the business plan would be put before Cabinet. The financial model had its key inputs reviewed and they are costs, rental values, cost of finance, expected sales revenue, land values and other expected costs.

Cabinet:

1.        Approved the Mercury Land Holdings Limited Business Plan 2020/21 (Contained with the Appendices to Exempt Agenda)

2.        Agreed to delegate authority to the Leader of the Council, after consultation with the s151 Officer, the Director of Regeneration Programme Delivery and the Director of Legal and Governance, to approve the detailed business cases, related viability assessments and funding requirement for the individual schemes noted within the Business Plan as they may be presented during the business plan period in order to enable them to proceed.

3.        Agreed in principle to provide additional gross investment of £92.6m capital funding to MLH up to a maximum of £228 million (effective from 2020/21) in respect of projects contained in Exempt Agenda through a combination of equity investment and state aid compliant loans subject to detailed approved business cases made under delegated authority in recommendation 2 above.

4.        Agreed to delegate authority to the S151 Officer to agree, after consultation with the Director of Legal and Governance, the completion of all relevant agreements and appointments of relevant professionals relating to the provision of debt finance by the Council to MLH. 

5.        Agreed to delegate to the S151 Officer, following consultation with the Director of Asset Management, and the Director of Legal and Governance, the authority to determine the principles and processes by which any assets shall be disposed of and the terms of disposal to MLH.