Issue - meetings

The establishment by the Council of a local authority wholly owned company (the Company) to develop, deliver, own and manage property as well as new development on a case by case basis using either Public Works Loan Board (PWLB) funding or external financing dependent which is the most viable option.

The company will initially focus on the refurbishment of existing properties suitable for residential lettings.  Consideration will also be given, on a case by case basis to the delivery of new build property developments, if deemed financially viable.

Caroline Kay (Bath Preservation Trust - BTP) said in her statement that BTP welcomed the report and that properties owned by the Council would be put back in use, which would help meeting housing needs in the centre of Bath.  The Trust would hope that there would be clear governance within the company in order to avoid sub-letting of properties.  The Trust would also hope that the Council would get the best value in order to generate revenue and achieve its objectives.  Caroline Kay also said that it was not clear in the report if other Councils, who undertook the same approach, were successful in this exercise nor it was clear what external and internal advice was given to the Council.  Caroline Kay asked for an assurance that planning guidelines would not be breached by future tenants.

Councillor Robin Moss welcomed the principle of using assets to generate an income for the Council.  In Councillor Moss’ view, this may have a potential impact on Council’s budget as it would be difficult to predict with certainty what the economic situation would be in years to come.  Councillor Moss also asked which external and internal advice had been taken on board, which Local Authorities had been used as model and who those Group Members who participated in the consultation were.

Councillor Dine Romero said that she had understood the need to create an additional income for the Council and asked if these properties would be subject of the ‘right to buy scheme’.  Councillor Romero also asked if these properties would be part of the affordable housing scheme.

Councillor Charles Gerrish welcomed the point raised by Caroline Kay in terms of sub-letting and said that he would ensure that this issue is taken forward before finalisation of any letting contract.  The Council’s key issue is to get sensible return on investment without the need to overcharge its tenants.  The Council’s objective would be to generate estimated revenue.  Councillor Gerrish also said that he was not in position at this stage to announce internal and external advisors, though bullet point 5.27 of the report might give some indications on local professional advice.  The new company would follow existing planning regulations.  One of Local Authorities used as a model was Mendip Council (6 months in existence).  Councillor Gerrish also said that Local Property and Development Company was not registered housing company so it would not be covered by Government legislation in terms of the ‘right to buy’ scheme.  Also, in terms of affordable housing, if the company would develop additional sites then they would abide to planning rules like everyone else.

Councillor Charles Gerrish said that the proposal would the delivery of the Council’s Medium Term Financial Plan for the period 2016/17 to 2019/20, with an additional £600K of recurring income targeted by the end of this period.

Councillor Charles Gerrish moved the recommendations.

Councillor Patrick Anketell-Jones seconded the motion by saying that the Council would need to look at innovative options and opportunities to  ...  view the full minutes text for item 69