Issue details

Cabinet received a report which included detailed proposals for the delivery of growth and regeneration schemes in Peterborough and for the Council’s involvement in those schemes.

The purpose of the report was to seek Cabinet’s approval to:

1)    Establish a 50:50 joint venture company with a new Peterborough Investment Fund to prepare viable and consented development schemes for a series of sites;

2)    Participate in the governance of the Peterborough Investment Fund through representation on the Fund’s Investment Committee and Management Board;

3)    Grant Option Agreements on the sites listed in section 4.3.3 of this report to the Peterborough Investment Fund;

4)    Approve the future Council office consolidation plan described in this report and enter into an Agreement for Lease with the Peterborough Investment Fund for new administrative offices to be developed on Fletton Quays; and

5)    Recommend to Council that the Treasury Management Strategy is amended to permit investments in Collective Investment Schemes to enable the Council to participate in the profits of the Peterborough Investment Fund, if it choose to do so.

Cabinet considered the report and RESOLVED the following:

In order to facilitate the establishment of a Peterborough investment Fund to bring forward development through £130M of external investment, Cabinet APPROVED:

(1)    The business case for an investment joint venture at Appendix 1;

(2)    The establishment of a Joint Venture Company with a Fund regulated by a UK registered fund manager with a 50% equal shareholding for each party;

(3)    Investment of £3m funded from the existing capital programme, representing the value of the 50% shareholding in the joint venture company and match funded by the Fund;

(4)    Granting of Option Agreements in favour of the Fund on the sites listed within this report, and to be included in the asset disposal list to be agreed by Council as part of the Capital Strategy; and

(5)    An Agreement for Lease with the Fund for the development of offices on Fletton Quays.

Cabinet RECOMMENDED to Council:

(6)    Amendments to the Capital Strategy and Asset Management Plan as part of the Medium Term Financial Strategy to be approved by Council to include the revised capital programme, the sites listed in this report on the asset disposal list and the approach to granting Option Agreements;

(7)    Amendment to the Treasury Management Strategy as part of the Medium Term Financial Strategy to be approved by Council to allow the Council to elect to take the benefit of land transfers as units in the fund;

(8)    Amendment of the Constitution ‘Appointments to external organisations’ to include the joint venture company and the Fund within the ‘key partnerships category’ to enable the Leader to appoint members to:

a.    the Board of the Joint Venture Company

b.    the Fund investment committee

c.    the Fund management board

Cabinet DELEGATED authority to the Director of Growth & Regeneration, in consultation with the Leader of the Council, the Director of Governance and Executive Director of Resources, to

(9)    Agree the fund investment criteria, shareholders agreement and all other necessary documents to establish the joint venture company and the agreements with the Fund; and

(10) Authorise the creation of additional organisations such as limited companies, or limited liability partnerships (a council wholly owned company) to hold any dividend bearing units in the Fund

Cabinet DELEGATED authority to the Director of Governance, in consultation with the Executive Director of Resources, to agree the terms of the Agreement for Lease and to execute the transfers of land in response to the exercise of the Option Agreements by the Fund.