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Decision details

Ongoing Review of Brick by Brick Croydon Ltd and associated matters relating to the company

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

 

RESOLVED: To

 

1.           Agree that the Council recognises the costs of the Fairfield Halls refurbishment, being a total of £69.261 million (as identified in Appendix 1 of the report), as capital expenditure rather than as a Capital Loan and to:

 

                  i.    Agree, in principle, that the existing Fairfield Halls refurbishment contracts with Brick by Brick be novated to the Council (subject to review of the individual contracts, to be finalised and authorised by the Interim Executive Director of Place under their delegated authority); and

 

                ii.    Agree, in principle, that specialist consultants or contractors, required to identify any additional remedial works to the building, be appointed (in accordance with the Council’s Tenders and Contracts Regulations).

 

2.           Approve that the Council’s Housing Revenue Account (HRA) can acquire 104 residential units from Brick by Brick as set out in Appendix 2 of the report and as further detailed in the Part B restricted report.

 

3.           Agree that the consolidated loan agreement shall, if required, be varied to include a further loan draw down amount of up to £10 million to cover additional working capital, in the event that this is required by Brick by Brick due to possible delays with forecast sales receipts (this is in addition to the £9.99m agreed by Cabinet in February 2021) and agree that authority be given to the Interim Chief Executive in consultation with the interim Director of Finance, Insurance and Risk and Section 151 officer and in consultation with the Leader and the Cabinet Member for Croydon Renewal and Cabinet Member for Resources and Financial Governance; to agree such draw down sums (not exceeding the overall additional £10m) as appropriate to address immediate operational needs. 

 

4.           To note that any recommendation to acquire further units or other assets from Brick by Brick, and that any such acquisition of units to be within existing capital budget provision and meet the affordability criteria, should return to Cabinet for decision.

 

5.           Otherwise note the progress made with regard to the previous February 2021 Cabinet recommendations on Brick by Brick.

 

Report author: Chris Buss

Publication date: 25/05/2021

Date of decision: 17/05/2021

Decided at meeting: 17/05/2021 - Cabinet

Effective from: 26/05/2021

Accompanying Documents: