Issue - meetings

To consider the report of the Cabinet Member for Regeneration and Economy and Cabinet Member for Performance and Resources seeking approval for the  implementation of a strategy to enable further investment in property assets.

To consider the report of the Cabinet Member for Regeneration and Economy and Cabinet Member for Performance and Resources outlining a strategy to enable further investment in property assets.

RESOLVED:

(1)       That the Property Investment Strategy, as set out in this report, be approved.

(2)       That the setting up of a Property Investment Board in line with the Terms of Reference as set out in Appendix B be approved.

(3)       That Authority be delegated to the Council Solicitor to negotiate and conclude such documents deemed necessary or desirable to reflect the heads of terms negotiated by the S151 Officer and  Head of Place to enable the completion of each acquisition.

RECOMMEND TO COUNCIL:

(1)          That Authority be delegated to the S151 Officer in consultation with the Cabinet  Member for Performance and Resources to:

a)     Amend the capital programme to create a  Property Investment fund of £80m in order to acquire new investment property;

b)     Borrow as required to fund  investment property purchases; and

c)      Amend the Treasury Management Strategy and Prudential Indicators as necessary to reflect the Council’s borrowing requirement.

(2)          Subject to the approval of recommendation 1,  the following delegations be approved to proceed with the acquisition of assets, subject to the acquisitions meeting the parameters of the  Property Investment Strategy:

a)     Asset purchases of up to £15m to be approved by the S151 Officer in consultation with the Property Investment Board.

b)     Asset purchases in excess of £15m be referred to the Cabinet.

Cabinet considered the report of the Cabinet Member for Regeneration and Economy and Cabinet Member for Performance and Resources outlining a strategy to enable further investment in property assets.

Members had been made aware of the amounts of savings the Council had to face.  The Leader of the Council advised that the Property Investment Strategy had identified an alternative key source of income that would potentially deliver additional income to help meet the Council’s financial requirements.  He drew Members attention to the risks involved and the need for the Council to mitigate these risks.

The Cabinet Member for Performance and Resources said he had been sceptical about the suggestion before speaking to other local authorities who had been actively increasing their investment.  He believed the City Council should seek to source appropriate investment assets only after conducting vigorous due diligence well in advance.

The Cabinet Member for Performance and Resources suggested an amendment to Appendix B to allow for a named substitute, which should be the Leader of the Council in the first instance. In his absence it should be the Cabinet Member for Performance and Resources followed by the Deputy Leader of the Council.

RESOLVED that:

(1)       The Property Investment Strategy, as set out in this report, be approved.

(2)       The setting up of a Property Investment Board in line with the Terms of Reference set out in Appendix B be approved.

(3)       Authority be delegated to the Council Solicitor to negotiate and conclude such documents deemed necessary or desirable to reflect the heads of terms negotiated by the S151 Officer and  Head of Place to enable the completion of each acquisition.

RESOLVED TO RECOMMEND TO COUNCIL that:

(1)  Authority be delegated to the S151 Officer in consultation with the Cabinet  Member for Performance and Resources to:

a)    amend the capital programme to create a  Property Investment fund of £80m in order to acquire new investment property;

b)    borrow as required to fund  investment property purchases; and

c)    Amend the Treasury Management Strategy and Prudential Indicators as necessary to reflect the Council’s borrowing requirement.

d)    Subject to the approval of recommendation 1, the following delegations be approved to proceed with the acquisition of assets, subject to the acquisitions meeting the parameters of the  Property Investment Strategy:

e)    Asset purchases of up to £15m to be approved by the S151 Officer in consultation with the Property Investment Board.

f)     Asset purchases in excess of £15m be referred to the Cabinet.