Issue - meetings

Councillor I.T.E. Harvey

To consider an exempt report on the acquisition of a site.

Reason for exemption

This report contains exempt information within the meaning of Part 1 of Schedule 12A to the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006 Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information) and in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information because, disclosure to the public would prejudice the financial position of the authority in the bidding process for the site by allowing other bidders to know the position of the Council.  This in turn prejudices the Council by (i) distorting the bids process and (ii) prejudicing the opportunity for the Council to acquire a site in order to  enable regeneration in the Borough.

Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information)

Cabinet considered an exempt report on an opportunity to acquire an asset for affordable housing to provide 43 apartments with 27 parking spaces.

The Group Head for Regeneration and Growth gave a presentation on the proposal setting out the rationale for acquisition, the costs involved and the due diligence process.

Cabinet expressed concern that liability for external building maintenance, including a contribution towards grounds maintenance, rested with the leaseholder and asked for further clarity on the scope to change this position, before it agreed to proceed with the acquisition.

Alternative options considered and rejected by the Cabinet:

·         Not to proceed with the acquisition.

Resolved to delegate the decision to proceed with the acquisition and approve the following recommendations, to the Leader, Councillor I.T.E. Harvey, subject to clarity as to the estate service charge:

1.    Approve the funding of Knowle Green Estates Limited (KGE) to facilitate the acquisition of the 999 years long leasehold interest in the affordable housing asset identified in this report;

2.    Formally approve the terms agreed, and authorise the Chief Executive (in consultation with the Chief Finance Officer, the Leader and the Cabinet Member for Finance) to agree any further additional terms as funder to enable KGE to proceed with their acquisition of the asset;

3.    Authorise the Chief Finance Officer to decide the most financially advantageous funding arrangements for the purchase, and overall to ensure the funding for the acquisition is prudentially affordable; and 

4.    Authorise the Head of Corporate Governance to enter into any legal documentation necessary to fund the acquisition of the asset including the completion of the associated loan agreement with KGE.

Reasons for Decision

Approving this funding will enable the provision of 43 new apartments for affordable rent with 27 car spaces. The scheme is anticipated to be completed in Spring 2022 and is in line with Spelthorne’s strategy to significantly increase the supply of affordable homes within the Borough. The scheme will also support the Council to continue with its strategy to reduce the number of households in emergency and temporary accommodation.