The Executive Director, Regeneration and Housing, has submitted a report to the City Executive Board on 14 April 2016 which seeks budgetary approval for the sale of Oxpens land and a loan to Oxford West End Development Ltd.

The City Executive Board will consider the recommendations below at their meeting. Their decision will be reported at Council.

The Board Member will move the recommendations as agreed by the Executive Board.

Officer recommendation

That the City Executive Board resolves to recommend full Council to approve:

1.         a loan of £4.16 million to Oxford West End Development Ltd to provide funds to the company to purchase land owned by Oxford City Council on terms set out in this report;

2.         a capital budget of £4.16 million in the Council’s General Fund Capital Programme in 2017/18 funded from the Capital Receipt received from the sale of the land.

Council considered a report to the City Executive Board on 14 April 2016 which seeks budgetary approval for the sale of Oxpens land and a loan to Oxford West End Development Ltd and noted that the recommendations agreed by the Executive Board were as set out in the agenda.

Council resolved to:

1.         approve a loan of £4.16 million to Oxford West End Development Ltd to provide funds to the company to purchase land owned by Oxford City Council on terms set out in this report;

2.         approve a capital budget of £4.16 million in the Council’s General Fund Capital Programme in 2017/18 funded from the Capital Receipt received from the sale of the land.

The Executive Director, Regeneration and Housing has submitted a report which seeks budgetary approval for the sale of Oxpens land and a loan to Oxford West End Development Ltd.

Recommendations: That the City Executive Board resolves to recommend full Council to approve:

1.    A loan of £4.16 million to Oxford West End Development Ltd to provide funds to the company to purchase land owned by Oxford City Council on terms set out in this report.

2.    A capital budget of £4.16 million in the Council’s General Fund Capital Programme in 2017/18 funded from the Capital Receipt received from the sale of the land.

The Executive Director, Regeneration and Housing submitted a report seeking budgetary approval for the sale of Oxpens land and a loan to Oxford West End Development Ltd.

The Leader of the Council presented the report.

The City Executive Board resolved to recommend full Council to approve:

1.    A loan of £4.16 million to Oxford West End Development Ltd to provide funds to the company to purchase land owned by Oxford City Council on terms set out in this report.

2.    A capital budget of £4.16 million in the Council’s General Fund Capital Programme in 2017/18 funded from the Capital Receipt received from the sale of the land.

Contact Officer: David Edwards, Executive Director, Regeneration & Housing Tel 01865 252394, dedwards@oxford.gov.uk

This is exempt from publication by virtue of Paragraphs 3 and 5, Part 1 of Schedule 12A of the Local Government Act 1972 for the following reasons:

•               Commercial affairs of the Council

•               Legal Privilege

The Board received and noted the contents of the not for publication appendices and to the report on Oxpens Delivery Strategy (agenda item 7; minute 151) and the presentation from the Executive Director, Regeneration and Housing.

The Executive Director, Regeneration and Housing has submitted a report which provides an update on the Oxpens development scheme and seeks approval for an amendment to the strategy.

Recommendations: That the City Executive Board resolves to:

1.            Note the contents of this report;

2.            Authorise a collaboration with Nuffield College to create an appropriate joint venture vehicle through which the Oxpens strategy can be delivered, on the basis that Nuffield College would act as an investor in the vehicle and in recognition of Nuffield’s position as a key landowner in the development area, as set out in this report;

3.            Delegate authority to the Executive Director, Regeneration and Housing, in consultation with the Chief Executive, s151 Officer and Monitoring Officer, to agree the terms of the Council’s entry into such a joint venture vehicle;

4.            Authorise (if required) the placement of an appropriate VEAT notice in regard to the proposed collaboration with Nuffield College;

5.            Agree to the commencement of an appropriate competitive procurement exercise to select a developer joint venture partner to become a Member of the proposed joint venture vehicle

6.            Delegate authority to the Executive Director, Regeneration and Housing to agree terms for the acquisition of land at Oxpens, as described in this report, in consultation with the Chief Executive, s151 and Monitoring Officers;

7.            Delegate authority to the Chief Executive, in consultation with the Leader, to appoint directors to the joint venture company.

The Executive Director, Regeneration and Housing submitted a report which detailed an update on the Oxpens development scheme and sought approval for an amendment to the delivery strategy.

The Executive Director, Regeneration & Housing reminded the Committee of the background to the item:

·         the Council had been exploring strategic options for the redevelopment of Oxpens for several years;

·         the Council was committed to the comprehensive regeneration of the whole Oxpens area which would maximise value and contribute to the wider city economy;

·         negotiations with the Department of Transport and LCR (London and Continental Railways) over the previous JV arrangements (agreed by CEB in October) had now stalled;

·         central Government had now confirmed the disposal of railway lands at Oxpens to the Council on the basis of an unconditional sale for a fixed price and within a tight timescale;

·         in response the Council and Nuffield College proposed to set up a joint venture partnership company based on their respective positions as the predominant landowners in the area, their shared values, and their collective ambition to regenerate the Oxpens area.

The Chair of Scrutiny Committee said that the Oxpens Delivery Strategy report had been the subject of a thorough pre-scrutiny review at the meeting on 12 January 2016.  The discussion had concentrated on the financial and legal aspects underlying the decision to set up a JV company with Nuffield College and transfer the Council land holdings.  The Committee recognised that there would be opportunities to scrutinise the details of the JV partnership structure and business plans in the future when further decisions were brought back to the Board. The three recommendations from the Scrutiny Committee were intended to clarify the decisions to be taken by the City Executive Board.  He confirmed the Scrutiny Committee’s support for the proposals and recommendations contained in the report.

Councillor Fooks said that the Liberal Democratic Group supported the proposals and recommendations detailed in the report.

In conclusion the City Executive Board noted and accepted the three recommendations submitted by the Scrutiny Committee:

·         Recommendation 1 – that a VEAT notice should be issued by the Council in regards to the proposed collaboration with Nuffield College.

·         Recommendation 2 – that the Council should make every effort within its negotiating power to deliver its 50% affordable housing policy at Oxpens.

·         Recommendation 3 – that the City Executive Board resolves to authorise the disposal of the City Council’s land holdings at Oxpens to the new joint venture company on the terms set out in the report, and delegate authority to the Executive Director, Regeneration and Housing to agree the detailed arrangements of this disposal.

The City Executive Board resolved to:

1.            Note the contents of the report;

2.            Authorise a collaboration with Nuffield College to create an appropriate joint venture vehicle through which the Oxpens strategy can be delivered, on the basis that Nuffield College would act as an investor in the vehicle and in recognition of Nuffield’s position as a key landowner in the development area, as set out  ...  view the full minutes text for item 148

Contact Officer: David Edwards, Executive Director, Regeneration & Housing Tel 01865 252394, dedwards@oxford.gov.uk

The Chair introduced this item.  He explained that this was an opportunity for the Scrutiny Committee to make recommendations to the City Executive Board to inform their consideration of the proposals for a revised delivery strategy for the Oxpens development at its special meeting on 14 January 2015. He said that this was a substantive, complex and commercially sensitive matter that warranted careful consideration.

He welcomed Councillor Alex Hollingsworth, Board Member for Planning, Transport and Regulatory Services, David Edwards, Executive Director, Regeneration & Housing, Nigel Kennedy, Head of Financial Services and Lindsay Cane, Legal Services Manager.

The Executive Director, Regeneration & Housing reminded the Committee of the background to the item:

·         the Council had been exploring strategic options for the redevelopment of Oxpens for several years;

·         the Council was committed to the comprehensive regeneration of the whole Oxpens area which would contribute to the wider city economy;

·         negotiations with the Department of Transport and LCR (London and Continental Railways) over the previous JV arrangements (agreed by CEB in October) had now stalled;

·         central Government had now confirmed the disposal of railway lands at Oxpens to the Council on the basis of an unconditional sale for a fixed price and within a tight timescale;

·         in response the Council and Nuffield College proposed to set up a joint venture partnership based on their respective positions as the predominant landowners in the area, their shared values, and their collective ambition to regenerate the Oxpens area.

In private session the Committee asked a range of questions, covering risks, financing, financial scenarios, land ownership and links with other developments.

The Committee expressed its support for all the recommendations before thet City Executive Board and made the following observations:

·         that there were 3 main elements to recommendation 2; the establishment of a delivery partnership, the acquisition of land owned by London and Continental Railways, and the transfer of land owned by the City Council.  These elements could have been ‘unpacked’ more clearly in the recommendations;

·         that the partnership business plan and the selection of a private sector partner would be subject to future CEB decisions and scrutiny;

·         that recommendation 6 relates specifically to the land at Oxpens that is currently owned by London and Continental Railways;

·         that recommendation 7 relates to 3 joint venture company directors to be appointed by the City Council.  A further 3 would be appointed by Nuffield College.

To make the transfer of the Council’s land into the joint venture clear and explicit the Committee agreed to propose that the City Executive Board should resolve to authorise this disposal as a separate recommendation to those set out in the report.

The Executive Director, Regeneration and Housing submitted a report to the City Executive Board on 15 October which provides an update and seeks approval for an amendment to the Oxpens Delivery Strategy and budgetary adjustments.

The relevant draft minute of the City Executive Board meeting is attached later in the agenda.

The Board Member will present the report and recommendations.

Recommendations

The City Executive Board recommends Council to resolve to approve the establishment of a capital budget of £8.4m to progress the project through the next stages.

Council considered a report to the City Executive Board on 15 October which provides an update and seeks approval for an amendment to the Oxpens Delivery Strategy and budgetary adjustments.

The Board Member undertook to build in time to allow full scrutiny of the joint venture company plans.

Council resolved to:

approve the establishment of a capital budget of £8.4m to progress the project through the next stages.

The Executive Director     Regeneration and Housing has submitted a report which provides an update and seeks approval for an amendment to the Oxpens Delivery Strategy and budgetary adjustments.

Officer Recommendations: That the City Executive Board resolves to:

Recommendations: That the City Executive Board resolves to:

1.    Note the contents of this report;

2.    Delegate to the Executive Director Regeneration and Housing authority to agree terms for the acquisition of land at Oxpens (in consultation with the Chief Executive, s151 Officer and Monitoring Officer) subject to Council agreeing the recommendation set out at number 4 below;

3.    Approve the creation of a wholly owned investment vehicle and the commencement of a competitive exercise to secure a joint venture partner to become a Member of such a vehicle; and

4.    Recommend Council to resolve to approve the establishment of a capital budget of £8.4m to progress the project through the next stages.

The Executive Director, Regeneration and Housing submitted a report (previously circulated, now appended) which detailed the proposed revised arrangements and budgetary implications for the Oxpens Delivery Strategy following the withdrawal of the private sector partner.

The Partnership and Regeneration Manager presented the report.  She explained that the main difference in the revised proposals was that the Council would now create a wholly owned investment vehicle to acquire the land at Oxpens and then seek a joint venture partner through a competitive exercise.

The Board noted that recent Government announcements regarding proposed changes to planning legislation added a degree of urgency to the project.

The City Executive Board resolved to:

1.    Note the contents of this report;

2.    Delegate to the Executive Director Regeneration and Housing authority to agree terms for the acquisition of land at Oxpens (in consultation with the Chief Executive, s151 Officer and Monitoring Officer) subject to Council agreeing the recommendation set out at number 4 below;

3.    Approve the creation of a wholly owned investment vehicle and the commencement of a competitive exercise to secure a joint venture partner to become a Member of such a vehicle; and

4.    Recommend Council to resolve to approve the establishment of a capital budget of £8.4m to progress the project through the next stages.

The Executive Director for City Regeneration and Housing has submitted a report which seeks approval to establish a private sector investor partnership and development delivery vehicle.

Officer Recommendations: That the City Executive Board:

1. Note the contents of the report.

2. Establish an investment vehicle with a private sector partner to include an agreement with the Department for Transport/Cabinet Office (DfT/CO) for the acquisition of the railway lands.

3. Approve the principle of direct sale of relevant Council Land to the investment vehicle, subject to formal valuation.

4. Delegate to the Executive Director of City Regeneration and Housing the authority to publish a Voluntary Ex Ante Transparency (VEAT) Notice in the Official Journal of European Union (OJEU), enter into an appropriate Heads of Terms document, and subsequently the Members Agreement for a Limited Liability Partnership commercial vehicle, based on the principles set out in this report following consultation with the Council’s s.151 Officer and Monitoring Officer.

5. Grant project approval for the Oxpens’ Delivery project as set out in this report.

The Executive Director for City Regeneration and Housing submitted a report (previously circulated, now appended) which provided an update and sought approval to establish a private sector investor partnership and development delivery vehicle.

Cllr Price, Board Member for Corporate Strategy, Economic Development and Planning presented the report. He explained that the proposal was similar to the Barton development where Oxford City Council had formed an LLP with Grosvenor Homes to deliver affordable housing.

The initial stage would be to clean up the site and to develop sewers and a road system.

The legal representative outlined the structure of the complex transaction.

The proposed Oxpens Joint venture would purchase the City Council land and the former railway land to form one site. The value of the two sites as a single parcel of land would be greater than the two individual sites.

Cllr Tanner asked if a joint board made up of representatives from the partner company and Council officers was a good arrangement. Should Councillors be involved?

The Chief Executive explained that individuals that sit on the Board need to represent the new company. If the agreed terms of reference included Council’s priorities eg green development, sustainable communities etc then officers sitting on the joint board could make sure these are reflected in proposals. He felt that if Councillors sat on the joint board, they would potentially feel a greater conflict of interest.

Councillors should scrutinise the proposed contracts and terms of reference carefully and should get involved in the early stage of agreeing the governance arrangements so that their needs are addressed.

Cllr Price explained that Councillors would have the opportunity to discuss the development in more detail as the master-plan and planning permission(s) are sought. Members’ briefings sessions are a mechanism in place for Councillors to review the work of the joint board.

Cllr Sinclair asked what deadlock meant’ in paragraph 41 of the report?

The Legal Representative explained that the agreement was for the Council and the Partner to have a 50-50 share in the joint board to reach a consensus on decisions. If Council had a 51% share than the joint board would be considered a public body.

Cllr Price offered his appreciation for the huge amount of work officers had done – most notably the Director for City Regeneration and Housing, the Partnerships & Regeneration Manager and the Legal Representative.

The Chief Executive noted that this project was one of the practical rewards the city had got out of the City Deal, which had enabled the City Council to put other matters on the Government’s agenda to improve the economic development and regeneration of the city.

The City Executive Board resolved to:

1. Note the contents of the report.

2. Establish an investment vehicle with a private sector partner to include an agreement with the Department for Transport/Cabinet Office for the acquisition of the railway lands.

3. Approve the principle of direct sale of relevant Council Land to the investment vehicle, subject to formal valuation.

4.  ...  view the full minutes text for item 174

Appendices 4 and 5 are exempt from publication by virtue of Paragraph 3 and 5, Part 1 of Schedule 12A of the Local Government Act 1972 for the following reasons:

Appendix 4 para 5 – information which is legally privileged

Appendix 5 para 3 -information which is commercially sensitive to the Council

The Board noted the details of the legal process.

The Executive Director of City Regeneration and Housing has submitted a report which details an update and agree the next steps to deliver redevelopment of the Oxpens site area, including establishing the budget.

This report was presented to the City Executive Board on 3^rd July 2014. An extract from the minutes of this meeting is also attached.

Council is asked to approve the establishment of a budget of £320,000 in the Council’s revenue budget funded from the New Growths Point Grant to complete due diligence and to progress the project through the next stages.

The Executive Director of City Regeneration and Housing submitted a report and an extract from the minutes of the City Executive Board held on 3^rd July 2014 (previously circulated, now appended).  The report detailed an update and next steps to deliver the redevelopment of the Oxpens site area, including the establishment of a budget.

Councillor Price moved the report and clarified that under the City Deal a minimum of 300 residential units would be included as stated in paragraph 7 of the report and not to deliver up to 300 residential units as stated in paragraph 6 of the report.

Council agreed to approve the establishment of a budget of £320,000 in the Council’s revenue budget funded from the New Growths Point Grant to complete due diligence and to progress the project through the next stages.

See pages 67 to 78 in the main agenda.

The Executive Director of City Regeneration and Housing has submitted a report which details an update and agree the next steps to deliver redevelopment of the Oxpens site area, including establishing the budget.

Officer Recommendations: That the City Executive Board

1.         Note the contents of this report.

2.         Recommends to Council the establishment of a budget of £320,000 in the Council’s revenue budget funded from New Growths Point Grant to complete due diligence and progress the project through the next stages.

The Executive Director of City Regeneration and Housing submitted a report (previously circulated, now appended) which updated and agreed the next steps to delivering the redevelopment of the Oxpens site area, including establishing the budget.

Cllr Price, Executive Board Member for Corporate Strategy, Economic Development and Planning presented the report.

The City Executive Board resolved to:

1.         Note the contents of this report.

2.         Recommend to Council the establishment of a budget of £320,000 in the Council’s revenue budget funded from New Growths Point Grant to complete due diligence and progress the project through the next stages.