Purpose

The council is proposing to establish a new
joint venture to progress regeneration of the Town Hall
Quarter.

Decision

Resolved –
 

1.         that Cabinet
agrees to the council establishing a limited liability partnership
(LLP), for the purpose of the regeneration of the Town Hall
Quarter, subject to the satisfactory conclusion of final
negotiations with Mace – the LLP will be set up by the
entering into a Members' Agreement under which the LLP will have
two members, the council and Mace, each with an equal 50%
interest. 

 

2.         that a
contract award is formally made to Mace pursuant to the procurement
exercise undertaken to select a joint venture partner, once any
necessary negotiations have concluded and commitments
confirmed.

 

3.         that
Cabinet agrees that political oversight of the project will be
maintained through a combination of the Town Hall Quarter Member
Steering Group, which will monitor scheme design, composition and
associated stakeholder engagement, and the existing joint venture
Shareholder Board, which will monitor commercial aspects of the
development, the functioning of the joint venture and the on-going
relationship with Mace. Cabinet will remain responsible for the
approval of the Business Plan on an annual basis.

 

4.         that
Cabinet authorises the Director of Regeneration and Growth and
Monitoring Officer, in consultation with the Mayor, the Portfolio
Holder for Property, Resources and Customer Services and the
Portfolio Holder for Finance to agree the final form of legal
agreements to be entered into by the council (and by the LLP),
including:

·       
the Members' Agreement, by which the council and LLP
will establish the LLP (including the governance arrangements for
the LLP, financial arrangements, and business planning
process);

·       
the Land Agreement between the council and the LLP,
which will grant exclusive rights of development to the LLP over
council owned land in the Town Hall Quarter (as defined in
paragraph 4.7), and by which such land will be drawn down for
development by the LLP pursuant to the satisfaction of conditions
precedent;

·       
the Development Management Agreement to be entered
into between the LLP and Mace, who will be providing the
development management services to the LLP;

·       
all other associated agreements and documents by
which the LLP is to be established, including the final form of the
Business Plan (Appendix B, which is a Part B) including the
Procurement Policy; and

·       
agree the name for the LLP.
 

5.         that
Cabinet appoints directors to the JV and Partnership Boards of the
LLP to act on behalf of the council as set out in paragraph 4.23 of
the report.

 

6.         that
Cabinet notes that £5m has been allocated in the
council’s medium term financial scheme towards funding the
LLP and authorises council directors of the LLP, in consultation
with the Portfolio Holder for Finance, to sign loan notes up to
this amount.