Decision details

Exempt report of the Executive Director (Resources, Environment and Cultural Services) setting out the property investments opportunities going forward.

(1)        The Decision Taken

RESOLVED:

(1)     That the Cabinet notes the recent changes in the statutory prudential framework of capital finance and the implications on commercial property investment as outlined in the exempt report.

(2)     That delegated authority be given to the Executive Director (Resources, Environment and Cultural Services), in consultation with the following Members, to agree direct property investments as set out in paragraphs 3.8 – 3.12 of the exempt report:-

Leader/or Deputy Leader plus any two of the following three Executive Members:-

•    Executive Member (Business, Partnerships and Public Health)

•    Executive Member (Governance, Community Safety, Police and Crime Commissioner and Corporate Property)

•    Executive Member (Resources).

(3)     That a maximum threshold of £3M be applied for any individual transaction under this delegated authority.

(2)        Reasons for the Decision

In September 2017 the Cabinet agreed to establish a commercial property company as an income generating investment vehicle with the aim to make significant annual contributions to the Council’s General Fund in the face of funding shortfalls, and by doing so, put services on a more sustainable footing to support local people.

The draft business plan for the property company assumed most of the property investment would be located outside of the Borough, however given the change in the statutory framework, it would be logical to consider direct property investment by the Council, in additional to any investments that might be made indirectly through the property company in the future.

(Note: The Chairman of the Resources Overview and Scrutiny Committee had been given notice that it was impracticable to comply with the requirements that at least twenty eight days’ notice must be given of the intention to make a key decision not in the Forward Plan and to consider the item in the private section of the meeting in accordance with Regulations 5 and 10 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 because it was urgent and could not reasonably be deferred for the reason specified).

The reason for this item was to enable the Council to consider property investments going forward and not miss any opportunities.

(Note:  There were no declarations of interest by a Member(s) in respect of the matter decided).