Issue - meetings

Additional funding for feasibility studies for investment property development opportunities

Meeting: 02/10/2017 - Council (Item 39)

39 Investment in existing property portfolio pdf icon PDF 130 KB

The Interim Assistant Chief Executive – Regeneration & Economy submitted a report to the City Executive Board on 19 September in part to seek approval for an increased budget requirement of £4,635,000 in addition to the existing approved budget of £10,300,000 to include the undertaking of additional projects.

The report is attached to this agenda: appendices are available with the City Executive Board agenda.

The City Executive Board agreed the recommendations as set out in the report and in the minutes of the meeting attached later in this agenda.

Councillor Turner, Board Member for Finance, Asset Management, will move the recommendations.

 

Recommendation: The City Executive Board recommends Council to

approve an increase of £4,635,000 to the allocated budget of £10,300,000 to deliver the development opportunities at 1-5 George Street, Standingford House, Cave Street and add the new project of refurbishing 2 flats at 11 New Road and houses at 9 and 10 Ship Street.

Minutes:

Council considered a report from theInterim Assistant Chief Executive – Regeneration and Economy seeking approval for an increased budget requirement of £4,635,000 in addition to the existing approved budget of £10,300,000 to include the undertaking of additional projects (previously submitted to the City Executive Board meeting on 19 September 2017).

 

Councillor Price, Leader of the Council, presented the report and moved the recommendations.

 

Council resolved to approve an increase of £4,635,000 to the allocated budget of £10,300,000 to deliver the development opportunities at 1-5 George Street, Standingford House, Cave Street and add the new project of refurbishing 2 flats at 11 New Road and houses at 9 and 10 Ship Street.

 


Meeting: 19/09/2017 - City Executive Board (became Cabinet on 13 May 2019) (Item 69)

69 Investment in Existing Property Portfolio pdf icon PDF 130 KB

The Interim Assistant Chief Executive – Regeneration & Economy submitted a report to provide an update on the progress of a number of identified opportunities to maintain or improve the income stream from the Council’s property investment portfolio.  To seek approval for an increased budget requirement of £4,635,000 in addition to the existing approved budget of £10,300,000 to include the undertaking of additional projects.

 

Recommendation: The City Executive Board resolves to:

 

1.     Note the progress on the various schemes that had been identified and had budget approval to the value of £10,300,000. 

2.     Recommend to Council an increase of £4,635,000 to the allocated budget of £10,300,000 to deliver the development opportunities at 1-5 George Street, Standingford House, Cave Street and add the new project of refurbishing 2 flats at 11 New Road and houses at 9 and 10 Ship Street.

3.     Authorise entering into exclusive negotiations to seek financially viable agreements to lease with two identified commercial tenants at 1-5 George Street in line with the Not For Publication Appendix 7, subject to Council budgetary approval.

4.     Enter into the above agreements for lease at rental levels above the threshold of £125,000 per annum in line with the constitution.

5.     Delegate to the Interim Assistant Chief Executive – Regeneration and Economy, in consultation with the Head of Finance, the authority to alter the terms of the agreements to lease on the basis that they continue to represent best value during negotiations.

Additional documents:

Minutes:

The Interim Assistant Chief Executive – Regeneration & Economy submitted a report to provide an update on the progress of a number of identified opportunities to maintain or improve the income stream from the Council’s property investment portfolio.  To seek approval for an increased budget requirement of £4,635,000 in addition to the existing approved budget of £10,300,000 to include the undertaking of additional projects.

 

Cllr Turner, Board Member for Finance and Asset Management, spoke to the report. The risks associated with the proposed investments were outweighed by the potential benefits given the market for leases for the types of property  in question.

 

The City Executive Board resolved to:

 

1.     Note the progress on the various schemes that had been identified and had budget approval to the value of £10,300,000. 

 

2.     Recommend to Council an increase of £4,635,000 to the allocated budget of £10,300,000 to deliver the development opportunities at 1-5 George Street, Standingford House, Cave Street and add the new project of refurbishing 2 flats at 11 New Road and houses at 9 and 10 Ship Street.

 

 

3.     Authorise entering into exclusive negotiations to seek financially viable agreements to lease with two identified commercial tenants at 1-5 George Street in line with the Not For Publication Appendix 7, subject to Council budgetary approval.

 

4.     Enter into the above agreements for lease at rental levels above the threshold of £125,000 per annum in line with the constitution.

 

5.     Delegate to the Interim Assistant Chief Executive – Regeneration and Economy, in consultation with the Head of Finance, the authority to alter the terms of the agreements to lease on the basis that they continue to represent best value during negotiations.

 


Meeting: 19/09/2017 - City Executive Board (became Cabinet on 13 May 2019) (Item 76)

Investment in Existing Property Portfolio - Exempt Appendices 5,7,8 and 9

Appendices 5, 7 ,8 and 9 are exempt by virtue of Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.

Additional documents:

  • Restricted enclosure 16
  • Restricted enclosure 17
  • Restricted enclosure 18

Minutes:

These appendices were not discussed at the meeting

 


Meeting: 04/09/2017 - Finance Panel (Panel of the Scrutiny Committee) (Item 62)

62 Additional funding for feasibility studies for investment property development opportunities pdf icon PDF 130 KB

 

Background Information

The report provides an update on the progress of a number of identified opportunities to maintain or improve the income stream from the Council’s property investment portfolio and seeks approval for an increased budget requirement.  The Scrutiny Committee asked for this item to be included on the agenda for pre-decision scrutiny.

Why is it on the agenda?

The City Executive Board on 19 September will be asked to:

1. Note the progress on the various schemes that had been identified and had budget approval to the value of £10,300,000. 

2.  Recommend to Council an increase of £4,635,000 to the allocated budget to deliver specific development opportunities.

3. Authorise entering into exclusive negotiations to seek financially viable agreements to lease with two identified commercial tenants, subject to Council budgetary approval.

4. Enter into agreements for lease at rental levels above the threshold of £125,000 per annum in line with the constitution.

5. Delegate to the Interim Assistant Chief Executive – Regeneration and Economy, in consultation with the Head of Financial Services, the authority to alter the terms of the agreements to lease on the basis that they continue to represent best value during negotiations.

Who has been invited to comment?

·         Fiona Piercy, Assistant Chief Executive – Regeneration & Economy;

·         Nick Twigg, Major Projects and Development Manager.

 

 

Additional documents:

Minutes:

The Major Projects and Development Manager introduced the report.  He said that  the  existing  projects  had  grown  significantly  in  size  and  cost  but  that densities and projected rental income had also increased.   It was recommended that some new projects would be added where vacant premises required capital expenditure.

 

The Panel questioned the implications of the Council not being able to let properties on assured shorthold tenancies (paragraph 30) and whether the margin was beneficial to the Council or not.  The Head of Financial Services Advised that he would seek clarity from Legal Services on this point.

 

A minority of the Panel thought that it would make more sense for the site in Cave Street to be used for housing and for the new housing planned on the East Oxford  Community  Centre  site  to  be  substituted  for  business  units.    This proposal would maximise housing and maintain the integrity of the East Oxford Community Centre site.