Decision details

Accommodation and Support for Care Experienced Young People (PART A)

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Decision:

Cabinet RESOLVED;

 

2.1 To approve that the Council disposes of 90 Central Parade to MV Developments and any associated partners (“Investor”), which will be conditional upon receiving planning permission, and enter into Heads of Terms and subsequently a Conditional land sale agreement (or similar) for the value set out in the confidential Part B report; and an Agreement for Headlease with the Investor or an associated entity for the provision of an exempt supported accommodation scheme for care experienced young people.

 

2.2 To note that the disposal meets best consideration as detailed within the confidential Part B Appendix C.

 

2.3 To approve that the Council enters into Heads of Terms and subsequently into an agreement for underlease at 90 Central Parade with YMCA.

 

2.4 To delegate to Corporate Director of Children, Young People and Education, in consultation with the Executive Mayor, Cabinet Member for Finance, Cabinet Member for Homes, Cabinet Member for Children and Young People, Corporate Director of Resources, Corporate Director of Housing and Director of Commercial Investment and Capital to finalise and enter into all relevant final agreements related to the Conditional sale purchase agreement, Headlease, Underlease and Nomination agreement, including Heads of Terms and Agreement for Leases, subject to final financial and legal due diligence; and to take all steps to implement those agreements.

 

2.5 To note that the proposal set out in this report can only progress once MV Developments receive necessary planning approval and reach practical completion in relation to the development. The full planning and development risk remains with the developer.

 

2.6 To delegate authority to the Corporate Director of Children, Young People and Education, in consultation with Corporate Director of Resources, the Executive Mayor, Cabinet Member for Finance and Cabinet Member for Homes, to renegotiate terms of the Headlease or Underlease along with any documents preceding the main leases, should this be required prior to completion, but not to deviate by more than £1 million from reported benefits of this proposal as set out within this report.

 

2.7 To delegate to Corporate Director of Children, Young People and Education in consultation with Cabinet Member for Housing and Corporate Director of Housing to finalise and enter into a Nominations Agreement.

 

2.8 To note, subject to Recommendation 2.3, 2.4 and 2.7, that the Council will hold 100% Nomination rights for all 34 residential units for the period of the lease.

 

2.9 To note risks identified as part of this project are detailed within section 10 of this report.

Publication date: 17/10/2024

Date of decision: 16/10/2024

Decided at meeting: 16/10/2024 - Cabinet

Effective from: 25/10/2024

Accompanying Documents: