Issue - meetings

Welland Homes Business Plan Update incorporating Bentley Court

Meeting: 23/07/2019 - Cabinet (Item 20)

20 Welland Homes Business Plan Update incorporating Bentley Court pdf icon PDF 117 KB

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 five houses for the purposes of market rental investment at Bentley Court, Spalding, and to put in place the necessary arrangements to enable the company to move into contract on the proposed acquisition, subject to the necessary shareholder approvals (report of the Portfolio Holder Housing and Executive Director Commercialisation (S151) enclosed).

Minutes:

Consideration was given to the report of the Portfolio Holder for Housing and the Executive Director Commercialisation (S151), which presented to the Council, as sole shareholder for Welland Homes Ltd, an updated Welland Homes Business Plan and a proposal from the company to purchase five houses for the purposes of market rental investment at Bentley Court, Spalding, and to put in place the necessary arrangements to enable the company to move into contract on the proposed acquisition, subject  to the necessary shareholder approvals.

 

Members noted that the report contained information within the appendices that were not for publication by virtue of Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information).

 

Members agreed that only the principles of the report would be discussed and there was therefore no need for the meeting to go into private session.

 

DECISION:

 

a)    To approve the business case for the acquisition by Welland Homes Ltd of five houses at Bentley Court, Spalding, for the purposes of a market rental investment.

 

b)    That subject to the refreshed business plan and the budget being approved, that delegated authority be granted to the Executive Director - Commercialisation (the S151 Officer), to approve the terms of any loan agreements required and the value 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 SHDC quarterly finance report to members for quarter 1 2019/20. The original Capital Program was, included as Appendix E to the Budget, Medium Term Plan and Capital Strategy Report to Council on 27th February 2019, as Item 11 on the agenda.

 

d)    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.

 

(Other options considered:

·         To 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 forecast returns.

Reasons for decision:

·         The acquisition of five homes would 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.)