Agenda item

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

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.

Minutes:

The Executive Mayor introduced the report noting that Croydon was home to one of the largest populations of children and young people in all the London boroughs and the report marked an important step towards significantly improving the council's commitment to ensuring these young people have the best possible start in their transitions. Through partnership with the YMCA, the private sector and not-for-profit partners the solution would place young people at the heart of delivery. It would also improve the quality of both accommodation and services in line with the corporate parenting strategy and bring investment into the borough.

 

Cabinet Member for Children and Young People, Councillor Maria Gatland welcomed the report and commended the joint working between Housing and Children's social care. The positive impact of the proposals for young people was emphasised. 

 

Deputy Executive Mayor and Cabinet Member for Homes, Councillor Lynne Hale welcomed the report. The project would deliver on property sale proceeds whilst retaining Council use of the asset and improving provision of accommodation services to care experienced young people as set out in the corporate parenting strategy. The project would also bring an investment into the borough.

 

A key challenge had been to identify a potential scheme that delivered social value for the council whilst ensuring finance viability for a developer. The YMCA London had agreed to work with the Council to develop the scheme and take on the management of the property and provision of the care and support services.

 

Thanks were extended to all involved in the cross-directorate project.

 

Cabinet Member for Finance, Councillor Jason Cummings commented the project was an example of an innovate approach to asset disposal which also improved outcomes for people in Croydon.

 

Corporate Director Children, Young People and Education, Debbie Jones echoed the positive comments and commended the cross-directorate work undertaken on the programme. The positive impact for young people was noted and it was hoped this would be the first of many such initiatives.

 

Shadow Cabinet Member for Children, Young People and Education Councillor Amy Foster, welcomed the ambition in the project. It was noted that YMCA and YMCA London were used interchangeably in the report and clarification on the certainty of the project with the YMCA not just the building developer was sought.

 

The Executive Mayor advised there was certainty on the scheme with development work having been ongoing for some time.

 

Thanks were extended to officers for their cross departmental work to deliver a fundamental change.

 

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.

Supporting documents: