Issue - meetings

To consider the recommendations of the Cabinet.

Cabinet, at its meeting on 7 May 2013, had considered a report which set out the benefits, implications and proposed approach to the creation of a new delivery vehicle to drive forward the development of the Council’s land assets, so as to promote housing and economic growth. It summarised the work of Deloitte LLP (business and financial advisors) and Bevan Brittan LLP (legal advisors), appointed to evaluate options and report back on a preferred model, to provide the best opportunity to realise the ambitions of the Council and to create the infrastructure necessary to ensure greater prosperity for all Cheshire East residents.

Consideration was given to a recommendation from Cabinet, seeking Council’s agreement to set up a wholly owned and controlled, arms-length Development Company, limited by shares, where the Council retained the assets.

RESOLVED

1. That the setting up of a Development Company – East Cheshire, Engine of the North, wholly owned and controlled by the Council, in the form described in the report, to drive forward the development of the Council’s land assets, as a key element for the Council’s wider plans for housing and economic growth be approved.

2. That the following non-executive Directors be appointed, initially, to the Board of the Company - Cllr A Thwaite (Chairman), Cllr D Druce (Vice Chair), Cllr D Newton (Vice Chair), Cllr P Groves, the Director of Economic Growth and Prosperity (Caroline Simpson), the newly-appointed Head of Development (Darran Lawless) and that the Borough Solicitor, take on the role of Company Secretary.             

3. That a Shareholder Committee be established, comprising of the Leader, Deputy Leader, Portfolio Holder for Prosperity, Portfolio Holder for Resources and the Chief Executive. 

4. That delegated authority be given to the Interim Chief Executive and Interim Borough Solicitor and Monitoring Officer to take forward the actions required to implement the resolution of Council and set up the Development Company, reporting back to Cabinet in October 2013 on progress.  Specific actions to take forward being: -

·        To set up the Company as operational (separate legal entity) and establish its Memorandum and Articles of Association, by end May 2013.

·        Finalise initial staffing arrangements and related HR consideration; insurance arrangements; and other operating procedures, to ensure that the Council’s budget envelopes and capital plans in relation to the activities of the Company are clearly understood, by end May 2013.

·        Develop a 3-Year Business Plan for the Company, to establish the portfolio of assets it is required to act upon; any provision of resources to facilitate land acquisitions; and to set objectives against which its performance will be measured; and also draw up Company Objects and, if relevant, an Agency Agreement, by end October 2013.