Agenda item

To consider the report of the Director of Environment and Neighbourhoods seeking approval of the Outline Business Case (OBC) for the Beeston Hill & Holbeck Housing Private Finance Initiative (PFI) scheme, including the scope of the scheme and the financial implications for the Council.

Appendix 1 to this report is designated exempt under Access to Information Procedure Rule 10.2(a) & 10.4(3) 

The Director of Environment and Neighbourhoods submitted a report on the proposed Outline Business Case (OBC) for the Beeston Hill and Holbeck Private Finance Initiative (PFI) scheme, including the scope of the scheme and the financial implications for the Council.

The report referred to the appraisal of four options of decency; regeneration via a PFI contract and complementary development agreements with the private sector; stock transfer; and joint venture partnership.

Following consideration of appendix 1, including minor amendments to figures as reported at the meeting, designated as exempt under Access to Information Procedure Rule 10.4(1), which was considered in private at the conclusion of the meeting, it was

RESOLVED –

(a)  That approval be given to the preferred option, as described in paragraph 3.3 of the report, to be procured via a PFI contract and associated Development Agreement alongside the Little London PFI scheme.

(b)  That the proposed Council contributions to the project as identified in section 3.6 and appendix 1 of the report be approved.

(c)  That the Outline Business Case for the Beeston Hill and Holbeck PFI scheme as described in paragraph 3 of the report be formally submitted to the Department for Communities and Local Government.

(d)  That approval be given to the inclusion of the following sites within the Beeston Hill and Holbeck PFI scheme and to the utilisation of capital receipts from the disposal of these sites to support the PFI scheme and regeneration proposals for the Beeston Hill and Hobeck area:

  Holbeck Tower

  Malvern Rise / Malvern Grove

  St Luke’s Green

  Waverley Garth

  Coupland Place

  Malvern Road

  Coupland Road

  Bismarck Drive

  Bismarck Street

  Fairfaxes

  Meynall Heights

  Beverleys

  Folly Lane

  Cambrian Street

(e)  That the Matthew Murray site be disposed of prior to the commencement of the PFI scheme (as described in 5.10 of the report) with the balance of the capital receipt after BSF call to be used to support the regeneration programme for the area.

(f)  That Moor Road be excluded from the PFI scheme.

(g)  That affordable housing provision should be at up to 40% including new LCC new housing for most sites included in the PFI scheme.

(h)  That the City Council’s base annual affordability contribution of £592,000 per annum in the first year of operation be approved.

(i)  That the joint affordability implications for the joint procurement of the Little London and Beeston Hill and Holbeck scheme as set out at paragraph 5.0 of appendix 1 of the report be approved.

(j)  That the costs of acquiring leaseholder interests in order to deliver the scheme, estimated up to £1,300,000 be met by the Council or Aire Valley Homes Limited.

(k)  That the following be noted:

(i)  the estimated PFI cash flows summarised in Table 2 of paragraph 3 of Appendix 1 to the report and set out in detail in the Annexe to that Appendix;

(ii)  that the Financial Close for this project is programmed for September 2009 and the macro-economic conditions and price submissions by bidders may vary between the date of this meeting of the Executive Board and Financial Close. Section 4 in the financial appendix to the report set out the range of price sensitivities that could affect the affordability of the project and the submission of the Outline Business Case is approved in the knowledge that both the procurement process and prevailing macro-economic conditions may affect the Unitary Charge at Financial Close in September 2009;

(iii)  that at this stage the impact of the joint procurement on the affordability of the Little London project as agreed by Executive Board in November 2006 is neutral and that the Little London project is therefore still affordable.

(Councillor Harris declared a personal and prejudicial interest in this matter arising from his personal commercial activities, vacated the Chair in favour of Councillor A Carter and left the room for the duration of the discussion  and voting thereon)