Issue - meetings

Report of the Executive Director (Housing and Communities) on the appointment of an architect for the demolition and redevelopment of Howlands House, Welwyn Garden City.

Report of the Executive Director (Housing and Communities) on the appointment of an architect for the demolition and redevelopment of Howlands House, Welwyn Garden City.

(1)        The Decision Taken

RESOLVED:

(1)     That the Cabinet approves the appointment of Pellings, from the Council’s existing Architect framework agreement, to draw up a detailed scheme and submit a planning application for the demolition and redevelopment of Howlands House, Welwyn Garden City.

(2)     That, subject to planning approval, a further report be brought to the Cabinet setting out the detailed financial appraisal and seeking authority to procure a construction partner.

(2)        Reasons for the Decision

Howlands House provided short term accommodation for people and families who were homeless.  Built around 40 years ago it was subject to considerable wear and tear and had become dated over time.

The Council had carried out initial feasibility work and the site allowed the opportunity for a phased demolition and new build development.

The proposed scheme would provide larger, modern, temporary accommodation facilities including improved access via a lift and a specialist disability unit on the site.

The new development could be partly funded using the allowed amounts of Right to Buy receipts.

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

Report of the Executive Director (Resources, Environment and Cultural Services) on the establishment of a commercial property company limited by shares and wholly owned by the Council (circulated separately).

Report of the Executive Director (Resources, Environment and Cultural Services) on the establishment of a commercial property company limited by shares and wholly owned by the Council.

(1)        The Decision Taken

RESOLVED:

That the Cabinet agrees to:-

(1)     the establishment of a commercial property company (the Company), which would be a company limited by shares and owned wholly by the Council;

(2)     appoint the Chief Executive and Executive Director (Resources, Environment and Cultural Services) as directors to the Company’s Board of Directors;

(3)     note that the Cabinet will perform the shareholder function on behalf of the Council;

(4)     note that the Cabinet has an overriding power to take decisions relating to the Company.  In addition, the authority of the Company’s board of directors is limited insofar as they must refer certain types of decision back to the Cabinet for approval.  These decision types will be detailed in the Memorandum of Understanding between the Company and the Council. Some of these decisions that will require Cabinet approval are listed in Appendix 1 to the report;

(5)     delegate authority to the Executive Director (Resources, Environment and Cultural Services), in consultation with the Monitoring Officer, Executive Member (Resources) and Executive Member (Governance, Community Safety, Police and Crime Commissioner and Corporate Property), to approve, finalise and document the following arrangements between the Council and the Company:-

•        the name of the Company;

•        the Articles of Association for the Company;

•        Memorandum of Understanding between the Company and the Council ;

•        appointment of a Company Secretary and Auditor;

•        loan and draw down facilities to the Company;

•        appointment of Non-Executive Director(s), if required;

•        any associated legal process and documentation necessary for the operational set up of the Company;

•        an appropriate mechanism to monitor the performance of the company and

•        a Service Level Agreement between the Council and the Company setting out the basis on which the Council will provide certain services to the Company.

•        Once the Memorandum of Understanding and the appointment of the Non-Executive Director(s) are finalised, they would be reported to Cabinet for endorsement.

(2)        Reasons for the Decision

The Council was facing significant financial challenges over the coming years.  In particular, reductions in Government grant and pressures to sustain and improve frontline services, along with restrictions on increases in Council Tax were all contributing factors which meant many Councils were looking to operate more commercially in order to improve their financial resilience in the longer term.

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