Decision details

Welland Homes Business Plan Update, incorporating Holbeach Road, Spalding

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To present a business case to Cabinet and to present to Council, as sole shareholder for Welland Homes Ltd, a proposal from the Company to purchase six houses for the purposes of market rental investment and an updated Welland Homes Business Plan.

Decision:

DECISION:

 

a)    To approve the business case for the acquisition by Welland Homes Ltd of six houses, for the purposes of a market rental investment;

 

b)    That, subject to the refreshed business plan and budget being approved by the Council in accordance with recommendation (c) 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:

 

c)    That the updated Welland Homes Business Plan be approved, and included as an amendment in the next SHDC Quarterly report to members;

 

d)    To reaffirm the delegated authority, granted by Council on 25 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.

Reasons for the decision:

 

 

·         Support the delivery of the wider Welland Homes Business Plan, which would in turn support the delivery of savings targets set out in the Council’s Medium Term Financial Plan;

·         Increase housing supply to address demand;

·         Boost to the local economy;

·         Improve the quality of rented sector accommodation;

·         Generate income for the Council.)

 

Alternative options considered:

·         Do nothing – without the approval of the shareholder, Welland Homes would be unable to proceed with the proposed investment.  This in turn would 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: Spalding St Paul's;

Contact: Caroline Hannon, Head of Delivery Email: Caroline.Hannon@sholland.gov.uk, Katie Nicol, Housing Development Programme Manager Email: Knicol@sholland.gov.uk.

Report author: Caroline Hannon

Publication date: 28/04/2021

Date of decision: 27/04/2021

Decided at meeting: 27/04/2021 - Cabinet

Accompanying Documents: