Private Sector Partnering
- report of Tom Bell, Neighbourhood Investment Manager
Additional documents:
Minutes:
Further to Minute No. 7 of the meeting held on 1st September, 2008, the Neighbourhood Investment Manager reported that work had taken place on further exploring and assessing the options available to establish a public/private sector partnership framework.
John Sawyer, of Eye Develop Ltd., who had been appointed to provide advice and guidance, gave the following powerpoint presentation on options for a public/private partnership development vehicle. A recommended model, if adopted, could be used initially to implement demolition and neighbourhood regeneration in Canklow and Dalton and East Herringthorpe:-
Context
- Homes and Communities Agency
New Capital funding opportunities particularly from April 2011
Seeking clear evidence of ability to deliver
Revenue uncertainty
- “Credit Crunch”
Development largely halted (new affordable housing) for 12-24 months
Developers likely to be increasingly selective when the market recovers
- Council Priorities
Whole neighbourhood investment
Council housing
Joint Service Centres
Implications
- Significant assessed development opportunity required to attract developers
- Public sector will need to make significant investment into projects and share risks – getting sites “oven ready”
- New skills needed
- New and more secure means of securing revenue funding need to be found
Options Assessment
- A series of options assessed against several criteria
Ability to secure delivery of Council objectives
Ability to access HCA investments
Appeal to developers
Implications for Council Capital and Revenue funding position
- All options require some form of “ringfencing” in order to unlock TYS/HCA investment. However, this is on the basis of new Capital funding
- Local Regeneration Partnership identified as preferred option
Preferred Option
- New local entity
- Holds option over Council land (the land remains in Council ownership until development takes place)
- Establish in shadow form by April, 2010 and full operational by April, 2011. Target of delivering 2,500+ new homes and Joint Service Centres
- Initially operating in Canklow and Dalton and East Herringthorpe. The opportunity to become Borough-wide once performance proven. Could include potential to deliver PFI
Next Steps
- Cabinet endorsement on emerging proposals
- Consult with TSY and HCA
- Further finance, accounting and legal investments
- Develop business plan for partnership
Identify potential sites
Identify Capital investment requirements
Assess staffing requirements
Identify potential Revenue support available
- Investigate best practice
Discussion ensued with the following issues highlighted:-
o Member involvement essential
o Such a public/private vehicle would be able to implement Housing PFI activity
o The HCA were looking for authorities that were ready to deliver and having such a vehicle would be beneficial
o TSY would support the proposal
Agreed:- That the report be noted.