Decision details

Cabinet considered a report on the transfer of properties from Spelthorne Borough Council to Knowle Green Estates (KGE) Ltd.

Alternative options considered and rejected by the Cabinet:

Not to transfer. This would contravene all relevant policies and strategies as laid down by in the KGE Ltd Business Plan as agreed by Cabinet on 29 January 2020.

Resolved;

1.    to note the advice on State Aid which has been provided by Counsel, as part of original reports provided to Cabinet January 2020 (Confidential Appendix A).

2.    subject to receiving up to date valuation advice prior to transfer, to delegate authority to the Chief Executive in Consultation with the Leader, Portfolio Holder for Finance (or the Deputy Leader if he is not available) and Chief Finance Officer, to transfer the following Council properties into the ownership of Knowle Green Estates Ltd (KGE) for nil cash consideration:

a. Benwell House Phase 1

b. Knowle Green West Wing

3.    that both Benwell House Phase 1 provides a mix of affordable rental (roughly 60%), keyworker rental (20%) and private rental (20%); and West Wing on a 100% affordable rental basis.

4.    to note that any funding requirement will be provided under the Loan and Drawdown Agreement approved by Cabinet on 11 May 2017.

5.    to approve the extension of this Loan and Drawdown Agreement (dated 29 March 2019) from £10m to £30m.

6.    to delegate to the Group Head of Corporate Governance to enter into all documentation required to give effect to these transfers and loans.

Reasons for Decision

To comply with the Council’s policy that all residential assets (except those where external grant funding criteria require the assets to be owned by the Council)  should be owned by KGE Ltd, as specified in the KGE Ltd Business plan.