To consider Report No. CEX1904 (copy attached), which sets out the Rushmoor Development Partnership’s first business plan for approval.
Presented By:Paul Shackley, Chief Executive
Minutes:
The
Cabinet considered Report No. CEX1904, which set out the first
business/investment plan of the Rushmoor Development Partnership (RDP) for
2019/20.
Members were reminded that the establishment of the
RDP had been agreed by the Council at its meeting on 4th October,
2018. It was considered that the business plan, also known in legal terms as
the investment plan, was a significant document as it would establish the
principles of business between the Cabinet and the RDP. The Report set out the
latest situation in relation to the four sites that would be considered
initially by the RDP, being
·
Civic Quarter, Farnborough
·
Union Street East, Aldershot
·
Farnborough Main Car Park (also known as Union Street
West)
·
Parsons Barracks Car Park, Aldershot
It
was confirmed that the process for progressing site developments was set out in
the draft business plan. Members were informed that the governance arrangements
for the RDP had been considered by the Licensing, Audit and General Purposes
Committee at its meeting on 6th June, 2019 and it was
felt that the proposed governance and management arrangements would be
sufficiently linked to the Council’s democratic processes to provide assurance
that the Council would not be exposed to unacceptable or unforeseen risks. The
Cabinet would consider the site project plans as part of the approval process
for the transfer of assets into the RDP and a briefing would be provided prior
to any planning application being made.
Members
considered the Report at length and asked many questions relating to the
proposed business plan. Clarification was given in many areas, including that:
-
the RDP’s returns and profits, as set out in Exempt
Section E of the proposed business plan, would be split equally between Hill
Investments and the Council on the basis that each party would input equally;
-
infrastructure improvements would be considered as part
of the project plans;
-
the governance structure was such that the Executive Head
of Finance, acting as the Council’s Section 151 Officer, would remain
sufficiently impartial as to be able to provide the Council with best advice in
relation to risks attached to RDP proposals;
-
RDP proposals would consider other developments in the
Borough, especially in terms of market values and demand;
-
the procurement policy of the RDP was not the same as the Council’s but the
options for using local contractors, suppliers and colleges (for training) were
being reviewed;
-
there was significant interest in additional hotel
provision in Farnborough;
-
the makeup of the Investment Team would be clarified in
future reports;
-
the offer of ‘creative’ rent schemes, such as turnover
rents, would be considered, within the RDP’s parameters of viability;
-
cross subsidisation between sites would be a feature of
the RDP’s approach but that the level of cross subsidy would not be apparent
until the detailed schemes had been worked-up;
-
members of the Cabinet would receive a written answer as
to whether payment in full in respect of Suitable Alternative Natural
Greenspace would need to be made by the Council in the event
that outline planning permission was obtained prior to the transfer of
Council-owned land to the RDP in relation to any site; and
-
where the proposed business plan referred to ‘public
consultation’, this would be known as ‘public engagement’.
The
Cabinet requested that the RDP should be advised of the points set out above.
Supporting documents: