Decision Maker: Cabinet Member for Finance, Property and Regeneration
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Finalisation of main contract
1. That Appendix 1 and 2 of this report be exempt from disclosure by virtue of the Local Government Act 1972, Schedule 12A Part 1, paragraph 3 (as amended), in that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information).
2. That Cabinet Member for Finance, Property and Regeneration gave :
2.1 Approval for the General Fund to invest as senior lender £28m, into the Council’s wholly owned housing company, Westminster Housing Investments Limited (WHIL).
2.2. Approval for the General Fund to invest as subordinated debt £15m, with a contingency of a further £3m, into the Council’s wholly owned housing company, WHIL.
2.3 Approval for the General Fund to invest as senior debt £28m into the Luton Street Development Limited Liability Partnership (LLP).
2.4 Approval for a further investment by the General Fund into WHIL should it be required, of up to £77m to enable it to purchase any unsold units as per the Takeout Agreement and noted that this investment will be split 65% Senior debt, 35% unsecured debt.
3. That the Cabinet Member for Finance, Property and Regeneration delegated authority to the Executive Director for Growth, Planning and Housing to agree any final commercial terms and to enter into a Deed of Variation to the Agreement for Lease (dated September 2016) and any other associated legal agreements.
4. That the Cabinet Member for Finance, Property and Regeneration delegated authority to the Executive Director for Finance and Resources to agree any final commercial terms of the Loan Documents, including tripartite senior and subordinated debt agreements between the Council, WHIL and Bouygues Development Limited (BYD) and any associated legal agreements.
5. That the Cabinet Member for Finance, Property and Regeneration noted the decisions taken by the WHIL Board on 4th September 2019 to enter into commercial terms as recommended in the paper attached in Appendix 1 to this report.
Reasons for the Decision
1. The redevelopment of the Luton Street scheme, which consist of two sites at Luton Street and Fisherton Street, forms an important part of the wider Church Street regeneration. As one of the first major sites to come forward, it will act as a catalyst for further development and improvements in the area.
2. A Business Case has been produced supporting the recommendation that WHIL enters into an LLP with BYD to deliver the Luton Street development, thereby evidencing:
· strategic fit and supporting a compelling case for change
· Maximising public value, including wider social, environmental and economic benefits
· commercially viability.
· affordability and is fundable over time.
· Successful delivery by the Council and its partners.
Publication date: 03/10/2019
Date of decision: 03/10/2019
Effective from: 11/10/2019