Agenda item

Report No: COU/SE/15/031

(For reference purposes, Forest Heath District Council’s Report Number is COU/FH/SE/036)

(Councillor Joanna Rayner declared a pecuniary interest as an employee of Havebury Housing Partnership.  Councillor Robert Everitt and Frank Warby declared pecuniary interests as Board Members of Havebury Housing Partnership. Councillor Clive Springett declared a pecuniary interest as a Director of Havebury Housing Partnership.  The aforementioned councillors all left the meeting during the consideration of this item.

Councillor Terry Clements declared a local non-pecuniary interest as a Life President of Havebury Housing Partnership. Councillors Diane Hind and Patsy Warby declared local non-pecuniary interests as Members of Havebury Housing Partnership’s Performance and Scrutiny Panel.  The aforementioned councillors remained in the meeting for the consideration of the item.)

Further to the joint informal discussions held prior to the meeting with Forest Heath District Council on Report No: COU/SE/15/031, Business Case to Establish a Housing Development Company, it was proposed, seconded and,

RESOLVED: That, as detailed in Report No: COU/SE/15/031:

(1)     the establishment of a Housing Development Company incorporated as a company limited by shares that will be jointly owned by Suffolk County Council (50% of shares), Forest Heath District Council (25% of shares) and St Edmundsbury Borough Council (25% of shares), be approved;

(2)     the role of Shareholder in St Edmundsbury be assumed by St Edmundsbury Borough Council’s full Council;

(3)     a Shareholder Advisory Group be established with the purpose of advising each Council when exercising its role as Shareholder consisting of two elected members from Forest Heath District Council, two from St Edmundsbury Borough Council and four from Suffolk County Council, with advice provided by senior officers of all Councils. The identification of St Edmundsbury Borough Council’s nominations to the Shareholder Advisory Group be delegated to the Leader of St Edmundsbury Borough Council acting in consultation with West Suffolk’s Lead Member for Housing;

(4)     the composition of the Company’s Board of Directors be one director from Forest Heath District Council who shall be an officer of West Suffolk Councils, one director from St Edmundsbury Borough Council who shall be an officer of West Suffolk and two directors from Suffolk County Council (anticipated to be officers of Suffolk County Council), with up to an additional three directors appointed by the unanimous decision of the Shareholders;

(5)     the recommendation of St Edmundsbury Borough Council’s Overview and Scrutiny Committee held on 15 October 2015 that the criteria for selection of the three additional directors as specified in the fourth bullet of paragraph 3.29 in Appendix A be amended to read “up to three additional directors unanimously approved by the three Shareholder Councils. These will be ‘independent’ individuals selected for their relevant expertise and experience”;

(6)     authority to nominate St Edmundsbury’s director be delegated to the Joint West Suffolk Chief Executive, in consultation with West Suffolk’s Lead Member for Housing or the Leader of St Edmundsbury Borough Council;

(7)     the approval of the Memorandum and Articles of Association be delegated to the Head of Housing and the Monitoring Officer, acting in consultation with West Suffolk’s Lead Member for Housing and Suffolk County Council’s Director of Resources, who will act in consultation with Suffolk County Council’s Cabinet Member for Finance;

(8)     authority to negotiate and finalise the Shareholder Agreement be delegated to the Head of Housing and the Monitoring Officer, acting in consultation with the West Suffolk’s Lead Member for Housing and Suffolk County Council’s Director of Resources, who will act in consultation with Suffolk County Council’s Cabinet Member for Finance;

(9)     the naming of the Housing Development Company be delegated to the Head of Housing, acting in consultation with the Service Manager (Corporate Communications), West Suffolk’s Lead Member for Housing and Suffolk County Council’s Director of Resources, who will act in consultation with Suffolk County Council’s Cabinet Member for Finance;

(10)   authority to complete and submit the necessary documentation for incorporation be delegated to West Suffolk’s Monitoring Officer, acting in consultation with West Suffolk’s Head of HR, Legal and Democratic Services and Head of Housing and officers from Suffolk County Council;

(11)   in principle agreement be given to the disposal of St Edmundsbury Borough Council’s assets (land and/or buildings) to the Company at market rates;

(12)   in principle agreement be given to provide to the Company funding through state aid compliant loans in line with St Edmundsbury Borough Council’s existing Loans Policy;

(13)   a contribution of £125,000, funded from St Edmundsbury Borough Council’s Strategic Priorities and Medium Term Financial Strategy reserve, to a total working capital loan of £500,000 be approved, subject to contributions from all Councils in the following proportions; Forest Heath District Council (25%), St Edmundsbury Borough Council (25%) and Suffolk County Council (50%);

(14)   authority to negotiate and approve any staffing or TUPE matters arising in the future in connection with the Company’s operations be delegated to the Head of HR, Legal and Democratic Services, acting in consultation with the Head of Resources and Performance (s151 officer) and appropriate Suffolk County Council officers;

(15)   once the Company’s first Annual Business and Delivery Plan has been submitted to Shareholders (Forest Heath District Council, St Edmundsbury Borough Council and Suffolk County Council) and approved by the Shareholders (Forest Heath District Council’s full Council, St Edmundsbury Borough Council’s full Council and Suffolk County Council’s Cabinet), the Company may start trading; and

(16)   the detailed financial modelling contained in the exempt Appendices B, C and D, and the financial viability of the exemplar sites appraised, be noted.

(Councillor David Nettleton wished it to be recorded that he voted against the above recommendations.)