Issue - meetings

Report number:     CAB/WS/20/079

Portfolio holder: Councillor Sara Mildmay-White

Lead officer: Julie Baird

Resolved: That

1.       taking into account the financial and risk implications set out in Report number: CAB/WS/20/079 and Exempt Appendix A attached, the Barley Homes Business Plan 2020, be approved.

2.       in order to bring the Barley Homes Business Plan 2020 into effect:

a.       A further £60,000 be allocated to support the costs of progressing the Great Barton and Rougham sites and the development of future pipeline sites, funded from the Investing in our Growth Fund.

b.       The existing investment fund available to Barley Homes be increased by £1.75 million to a total of £14.25 million to facilitate the developments within the Business Plan, funded from the Investing in our Growth Fund.

c.       It be noted that in order to facilitate the developments within the Business Plan, the Council will be required to acquire sites from One Public Estate partners and the market, funded from the £14.25 million investment fund and subsequently dispose of these to Barley Homes at market value at the time of sale.

The Cabinet considered this report, which sought approval for a revised business plan for Barley Homes, and associated funding requests.

In December 2019, Council approved an annual business plan for Barley Homes and a capital budget of £5 million, funded from the Investing in our Growth Fund, to support the issuing of equity and loan financing to facilitate the development of two additional sites. This was in addition to an existing facility of £7.5 million, taking the total investment fund available to Barley Homes to £12.5 million.

Since then, the company had made good progress in achieving its aims and progressing the sites agreed in its business plan at Castle Hill (now Stonemill Park) and Westfield (now Westmill Place), Haverhill, for the delivery of 63 homes, of which 19 were affordable.  The two sites, combined, could generate a one-off return to the Council on its investment of up to £1.2 million (on top of repayment of a loan balances).  Construction was now underway on both sites.

Councillor Sara Mildmay-White, Portfolio Holder for Housing, drew relevant issues to the attention of Cabinet, including that in addition to the construction works outlined above, progress had also been made with the two further sites agreed at College Heath Road, Mildenhall, and School Lane, Great Barton.

Work was also continuing to explore future sites for development, and as a result, several opportunities and future sites had been identified, including a site in Rougham. These were being explored in line with the principles set out in 2.1.2 and 2.1.3 of the report.

The Cabinet acknowledged the good progress made by Barley Homes in achieving its aims and progressing the sites agreed in its business plan approved in December 2019. Members expressed their thanks to the team involved for reaching this point and had confidence that the company would continue to grow and thrive, while providing much needed homes, including affordable homes, for residents of West Suffolk.

Cabinet supported the proposals and associated funding requests set out in the report, which would enable Barley Homes to progress both existing and new opportunities set out in the Business Plan 2020. The primary function of Barley Homes was to generate capital and revenue income through the sale of council owned land and the development of new housing for sale in the West Suffolk area. This investment facility would provide a means for the Council to obtain income from Barley Homes, through interest (from its loan facility) and dividends (from the Council’s equity investment).

Resolved:

That:

1.       Taking into account the financial and risk implications set out in Report number: CAB/WS/20/079 and Exempt Appendix A attached, the Barley Homes Business Plan 2020, be approved.

2.       In order to bring the Barley Homes Business Plan 2020 into effect:

a.       A further £60,000 be allocated to support the costs of progressing the Great Barton and Rougham sites and the development of future pipeline sites, funded from the Investing in our Growth Fund.

b.       The existing investment fund available to Barley  ...  view the full minutes text for item 206