Issue - meetings

Further to Minute 72 (15 November 2016), the Cabinet Member for Finance, Growth and Investment presented an update report in respect of the Council’s Investment and Acquisition Strategy (IAS).

The Cabinet Member advised that a commitment to a £250m investment budget and £100m land and property acquisition budget had already been made and he referred to several of the major projects already underway, including the street property purchasing scheme which was helping to provide much needed, affordable accommodation for care leavers, adults with mental health issues and other groups.  On that issue, it was noted that plans were being progressed for the purchased properties to be held within a Special Purpose Vehicle, either as a stand-alone entity or within the B&D Reside structure.

The overall total debt required to deliver the 44 schemes in the Future Pipeline Regeneration Programme amounted to a further £2.12bn on top of the £250m already set aside.  The Cabinet Member acknowledged that such a level of investment was not without risk but he stressed that it was essential for the Council to raise additional income through its growth agenda if it was going to be able to maintain essential Council services in the future, bearing in mind the Government’s ongoing austerity programme.  The IAS was set to achieve £5m+ additional income from 2020/21 onwards and would primarily be delivered by the Council’s new development vehicle, Be First.

The Cabinet Member also referred to the proposed establishment of an advisory Investment Panel, which would be responsible for assessing and reviewing investment proposals and decisions, and other governance arrangements that would help to support the delivery of individual projects within the overall programme.

In response to issues raised:

·  The Cabinet Member for Finance, Growth and Investment undertook to keep Cabinet colleagues informed of progress on the major projects within the Future Pipeline Regeneration Programme; and

·  The Finance Director clarified that the Council had already drawn-down £89m of the £150m loan approval from the European Investment Bank, although the criteria for borrowing the remainder had been made tougher since the Brexit vote.

The Cabinet resolved to:

(i)  Note the progress being made in meeting the investment and acquisition income target;

(ii)  Approve the future Pipeline Regeneration Programme, as set out at Appendix 1 to the report;

(iii)  Agree to receive a twice-yearly report on the Investment and Acquisition Strategy and Business Plan, to approve the investment programme and schemes and to enable effective land acquisitions and investments;

(iv)  Approve the principle to establish a Special Purpose Vehicle to hold properties under the street properties purchasing programme as required;

(v)  Approve the Terms of Reference of the advisory Investment Panel, established pursuant to the Chief Operating Officer’s delegated powers, as set out at Appendix 2 to the report;

(vi)  Note that the Investment and Acquisitions Decision Framework at Appendix 3 to the report, which will be used to consider and assess each investment decision and land acquisitions, will be reviewed in consultation with Be First  ...  view the full minutes text for item 37