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. Delegate to the Executive Director for City Regeneration and Housing the authority to publish a VEAT notice, 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.

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