Agenda item

Appendices 1 and 2 to the report are exempt from publication as they contain commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

The Cabinet Member for Finance, Performance and Core Services presented the five-year rolling Business Plan of Be First, the Council-owned company launched on 1 October 2017, with the key objective of driving forward the delivery of the Council’s regeneration agenda.

Be First had progressed a number of activities outlined within the 2019/20 Business Plan and had made tremendous strides in establishing a ground-breaking model of local authority regeneration, with over 100 staff and the organisation now fully established and operational.  However, 2020 had been an exceptionally difficult year, with Be First’s work impacted by a combination of global, national and industry-specific events, including the result of the EU referendum and subsequent uncertainty, the Grenfell Tragedy in 2017, the COVID-19 pandemic and uncertainty over the New Homes Bonus.  Many of those events would have ramifications for the lifetime of the Business Plan.

The Cabinet Member drew attention to the key aspects within the new Business Plan which included:

·  By 1 April 2021, Be First anticipated having projects on site which were forecast to deliver a total of 2,200 new homes in future years;

·  In total, Be First anticipated completing 5,069 new homes over the next five years of which 3,747 (74%) had already received Investment Panel approval;

·  231 local people working for Be First as local contractors;

·  The purchase of Dagenham Heathway, a gateway into the Borough which would be developed for both residents and visitors; and

·  The Muller site, which was purchased to promote delivery of a revised mixed-use allocation for the Chadwell Heath area, supported via a new Masterplan to help accelerate strategic regeneration in the wider area.

Members welcomed the business plan and proposed new developments in the Borough.  It was noted that work was taking place with partners to ensure infrastructure around schools and healthcare provision would be included as part of the new developments.

Cabinet resolved to:

(i)  Approve the Be First Business Plan 2021-26, as set out at Appendix 1 to the report.

(ii)  Approve the Be First Developments (Muller) Ltd Business Plan 2021-22, as set out Appendix 2 to the report;

(iii)  Authorise the Chief Operating Officer, in consultation with and on the advice of the Investment Panel, to take all necessary action to enable Be First or Be First Developments (Muller) Ltd to carry out its proposals under the Business Plan and to agree any minor variations to the Business Plans subject to the conditions in these recommendations;

(iv)  Approve Be First, Be First Developments (Muller) Ltd or the Council to enter into any procurement related agreement or commitment required to enable the delivery of the Business Plans, subject to compliance with relevant procurement regulation and with State Aid rules;

(v)  Agree that if Be First enter into contractual arrangements described in the Business Plans and the report, the Council shall give a guarantee to the contractor under such contract guaranteeing performance of the contract by Be First, subject to Be First being satisfied that the contractor is able to perform the contract and all necessary due diligence being undertaken;

(vi)  Authorise the Chief Operating Officer to enter into any such guarantee and any necessary documents to give effect to the contractual arrangements as described, subject to the above conditions and the advice of the Director of Law and Governance;

(vii)  Note the dividend strategy as set out within the Be First Business Plan and note that it may be necessary to increase the existing working capital loan facility to support the Be First cash positions as set out within the report;

(viii)  Authorise the Chief Operating Officer, in consultation with and on the advice of the Investment Panel, to grant loans and complete all necessary documents and negotiations to complete the projects set out in the Business Plans subject to all necessary due diligence and compliance with State Aid rules, the Public Contracts Regulations 2015 (or any replacement thereof) and the Council’s Constitution;

(ix)  Delegate authority to the Chief Operating Officer, in consultation with the Shareholder Panel, to approve a long-term strategy for the use of Special Purpose Vehicles (SPVs) and authorise the Director of Law and Governance to complete any documents and legal agreements necessary to give effect to that strategy in future acquisitions; and

(x)  Note the progress in developing innovative mixed-use schemes, including 12 Thames Road as referred to in paragraph 3.3 of the report, and authorise the Chief Operating Officer, in consultation with and on the advice of the Investment Panel, to enter into all necessary legal documents to give effect to the schemes.