Agenda item

Report C/17/76 provides an update to Cabinet on a range of matters relating to the delivery of Otterpool Park. It sets out various options for delivering the council’s objectives for Otterpool Park and also makes recommendations that the council should explore, including the option of forming a development company. It also provides an update on the budget for the project.

Report C/17/76 provides an update to Cabinet on a range of matters

relating to the delivery of Otterpool Park. It sets out various options for

delivering the council’s objectives for Otterpool Park and also makes

recommendations that the council should explore, including the option of

forming a development company. It also provides an update on the budget

for the project.

Andy Jarrett, Head of Strategic Development Projects informed that officers are now focusing on moving forward with delivery of the project and this report asks Cabinet to agree a number of recommendations to do this.

He explained that sitting behind the project is the question of return, ensuring that the project will be profitable. This is a new experience for the council as the project is far bigger in size, complexity and time to deliver than any previous project it has led. The Council has sought advice from a number of professionals because of this.

Mr Jarrett explained that there are always risks with projects of this size but these reduce over time with profit increasing, therefore, if the council meets all the necessary requirements it could give a commercial return that would then be put to use in other parts of the district. The financial objectives are shown in the papers attached but it was made clear that the council’s finance team will monitor all aspects of the project. A report will be brought to Cabinet with a full financial and viability update in March 2018.

A number of delivery options have been put forward but the preferred option is to have a corporate joint venture which is typical of large scale, long term projects, therefore Cabinet is asked to agree that officers investigate this further.

Members asked a number of questions paying particular attention to the following:

·         Importance of avoiding delay, and avoiding uncertainty and risk in selection of a delivery route.

·         Profitability – it is still early stages and what degree of profitability the scheme will have will become known later but the signs are positive. Further details will be needed on how the whole district will benefit, but it is too early to be specific at this stage.

·         Finance – all indications are good but the finance team will work alongside the project team and will monitor at all stages.

·         Long term vision –guarantees cannot be made but officers informed that the council is in a good position, particularly as it is  both the local planning authority and owns 50% of the land for the project, which gives more control.

·         Benefit – the Council has backing from KCC through its application to the government’s Housing Infrastructure Fund which can help deliver schools, surgeries and other facilities early.

·         Stability against risk – the Council has stability and continuity therefore is desirable for partners, and has value in the land. Advice will be sought as a next step on how future JV arrangements can minimise risks from eg bankruptcy of a private sector partner.

A copy of the presentation given is attached to these minutes for information.

Proposed by Councillor Michael Lyons

Seconded by Councillor Russell Tillson and

Resolved:

1.         That report C /17/76 be received and noted with approval.

(Voting: For 9; Against 0; Abstentions 1)