Agenda item

To consider the joint report of the Directors of Environment and Neighbourhoods and City Development on a proposal to set up and operate a joint venture partnership through a private limited company with Bellway plc and Bellway Homes Ltd. to deliver the Council’s regeneration programme in east and south east Leeds.

Appendices 7 and 8 to this report are designated as exempt under Access to Information Procedure Rule 10.4(3). 

The Directors of Environment and Neighbourhoods and City Development submitted a joint report on a proposal to set up and operate a joint venture partnership through a private limited company with Bellway plc and Bellway Homes Ltd to deliver the Council’s regeneration programme in east and south east Leeds.

Following consideration of appendices 7 and 8 to the report, designated as exempt under Access to Information Procedure Rule 10.4(3), which were considered in private at the conclusion of the meeting it was

RESOLVED –

(a)  That the Board reaffirms that the primary objective of the EASEL initiative is to promote and improve the economic, social and environmental wellbeing of the EASEL area and its residents, having considered all of the matters in section 2 of the Local Government Act 2000 as set in the report, and having also considered all of the evidence set out in the report relating to how the initiative is likely to promote and improve wellbeing in the EASEL area, and agrees that each aspect of the arrangements set out in the report is likely to promote or improve the economic, social and environmental wellbeing of the EASEL area and its residents in the manner set out in the report.

(b)  That the terms of the Shareholders’ Agreement for the Joint Venture Company as set out in the report be approved by Executive Board, together with the establishment of the JVCo with Bellway.

(c)  That the first EASEL phase plan, showing the sixteen sites considered as priority for development in the EASEL area be approved.

(d)  That the initial eight sites to be developed through the JVCo be approved.

(e)  That delegation to the Director of City  Development be authorised to make amendments to the phase plan to ensure the effective operation of the JVCo as set out in appendix 3 of the report.

(f)  That  the Directors of City  Development and Environment and Neighbourhoods and Assistant Chief Executive (Corporate Governance) be authorised to conclude and execute the Shareholders’ Agreement on behalf of the Council as set out in the report.

(g)  That the development, by the JVCo, of the five neighbourhood plans be approved and that the Chief Regeneration Officer be authorised to manage the production of the neighbourhood plans with the JVCo subject to the completed plans being brought to this Board for final approval.

(h)  That the use of the business case for project development to be operated by the JVCo be approved subject to final approval (by the Council as JVCo shareholder) of a project by Executive Board.

(i)  That the delegations to the Chief Regeneration Officer and Director of City Development for the development of projects as set out in appendix 3 of the report be approved.

(j)  That, as prospective shareholder, approval be given to the initial draft business plan and draft budget for the JVCo and to the delegations to officers to participate in the management of the JVCo as set out in appendix 3 of the report.

(k)  That approval be given to the use of entry premium to fund the working capital of the company subject to approval of the JVCo draft business plan and draft budget.

(l)  That the arrangements for providing additional working capital to the company once the entry premium is spent be noted.

(m)  That the company dividends policy be approved and that responsibility on these issues be delegated to the Director of Resources as set out in appendix 3 of the report.

(n)  That the development of an equity loan scheme on the first phase of the EASEL development sites using a commuted sum mechanism be authorised.

(o)  That the delegations to the Chief Housing Services Officer on the details of the scheme be authorised.

(p)  That the transfer of the remaining funds from the Amberton Park equity loan scheme to the EASEL equity loan scheme be approved.

(q)  That the nomination of the Council’s initial  directors to the company be the Directors of City Development and of Environment and Neighbourhoods as unpaid directors subject to their acceptance of office and of the directors mandate.

(r)  That the directors mandate for the Council’s directors and the provision by the Council of the necessary indemnity insurance for the Council’s directors be approved.

(s)  That the arrangements for the appointment of future directors and deputies as set out in appendix 3 of the report be approved.

(t)  That a report be submitted to the Board providing further information on the regenerative aspects of the project in addition to other potential sources of funding which could be pursued.