Decision Maker: Cabinet
Decision status: Recommmend Forward to Council
Is Key decision?: Yes
Is subject to call in?: Yes
To present to the Council, as sole shareholder for Welland Homes Ltd, an updated Welland Homes Business Plan and a proposal from the Company to purchase four houses for the purposes of market rental investment.
1) To approve the business case for the acquisition by Welland Homes Ltd of four houses, for the purposes of a market rental investment.
2) That, subject to the refreshed business plan and budget being approved by the Council in accordance with recommendation 3 below, delegated authority be granted to the Executive Director - Commercialisation (the S151 Officer), to (i) approve the terms of any loan agreements required; (ii) approve the value and the profile of any periodic cash flow payments to be made to the Company; as required to support the Company in the acquisition of the proposed investment properties.
RECOMMENDED TO COUNCIL:
3) That the updated Welland Homes Business Plan be approved, and included as an amendment in the SHDC Quarterly report to members for quarter 1 2021/22.
4) To reaffirm the delegated authority, granted by Council on 25th March 2015, to the Executive Director – Commercialisation (the S151 Officer), to approve the final mix of use of reserves and borrowing in line with the business plan and Council Treasury Management Strategy.
· Supports the delivery of the wider Welland Homes Business Plan, which will in turn support the delivery of savings targets set out in the Council’s Medium Term Financial Plan;
· Increases housing supply to address demand;
· Boosts to the local economy;
· Improves the quality of rented sector accommodation; and
· Generates income for the Council
Do nothing – without the approval of the shareholder, Welland Homes would be unable to proceed with the proposed investment which would in turn limit the delivery of housing from Welland Homes under the existing Business Plan and leave the Company unable to deliver forecasted returns.
Reason Key: Incurring expenditure above £75,000 threshold in respect of revenue/£180,000 in respect of capital;
Wards Affected: (All Wards);
Conflict of Interest: None
Dispensation Granted: None
Report author: Caroline Hannon
Publication date: 18/02/2021
Date of decision: 16/02/2021
Decided at meeting: 16/02/2021 - Cabinet
Effective from: 26/02/2021
Current call-in Count: 0