To receive declarations of the existence and nature of any Disclosable Pecuniary Interests from Members in respect of any item to be considered at the meeting.

No declarations of interest were made by councillors regarding the items on the Agenda.

The Council is asked to consider whether it wishes to pass a resolution to exclude the Press and Public from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 on the grounds that the business involves the likely disclosure of exempt information as defined in paragraphs 3 and 5 of Part 1 of Schedule 12A to the Act (as amended) and that pursuant to paragraph 10 of Part 2 of the said Schedule 12A the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Committee resolved to exclude the Press and Public from the meeting in accordance with Section 100A (4) of the Local Government Act 1972 on the grounds that the business involved the likely disclosure of exempt information as defined in paragraphs 3 and 5 of Part 1 of Schedule 12A to the Act (as amended) and that pursuant to paragraph 10 of Part 2 of the said Schedule 12A the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

Note: Councillors were reminded of the need for confidentiality in respect of those items not considered in public

This report will not be published because the meeting is likely to be closed to the press and public in view of the nature of the business to be transacted/nature of the proceedings.  The report deals with information relating to the business affairs of the Council and information in respect of which a claim to legal professional privilege could be maintained in legal proceedings and the public interest in maintaining the exemption currently outweighs the public interest in disclosing the information.

The Council received and considered a detailed and comprehensive report (exempt from publication at the date of the meeting) of the Chief Executive regarding the Establishment of a Local Authority Investment Trading Company.

It was MOVED by Councillor Eber Kington, SECONDED by Councillor Clive Smitheram and RESOLVED (without a division) that:

(1)          the Business Case for proceeding to establish a property investment company, as set out in this report be noted and accepted;

(2)          the creation of Epsom & Ewell Property Investment Company Limited (“the Company”), to be limited by shares and wholly owned by the Council, in accordance with the arrangements described in this report be approved;

(3)          the creation by the Strategy & Resources Committee of a Shareholder Sub-Committee, to which will be delegated the Council’s functions as sole shareholder of the Company be approved;

(4)          the following Company documentation be approved:

·                     The Articles of Association for the Company;

·                     Shareholder Agreement between the Company and the Council including the first Annual Business Plan;

·                     Loan and draw down facilities to the Company;

(5)          the following Company appointments be approved:

·                     Chief Executive as Chair of the Board of Directors;

·                     Head of Property as Managing Director;

·                     Head of Legal & Democratic Services, Head of Housing & Community Services and the Section 151 Officer as Directors;

·                     A solicitor, identified within the Legal Team, to undertake the Company Secretary function.

(6)          the revised Property Investment Strategy 2017-20, governing the acquisition of all commercial property investment acquisitions made either by the Council directly or through a wholly owned property trading company of the Council, (attached at Annexe 1 to the report), be endorsed; 

(7)          the extended remit of the Investment Property Group (IPG) to include any property investment acquisitions made through a wholly owned trading company of the Council (in compliance with the Property Investment Strategy 2017-20) be endorsed;

(8)          supplementary capital expenditure for property acquisitions of up to £300m based upon £100m of borrowing commencing in 2017/18 and £100m in 2018/19 and £100m in 2019/20 be approved;

(9)          the revised set of prudential indicators, set out in Annexe 3 which include the operational boundary and authorised limit for external borrowing be approved to supersede those in the Council’s existing Treasury Management Strategy approved by full Council on 25 April 2017.

This report will not be published because the meeting is likely to be closed to the press and public in view of the nature of the business to be transacted/nature of the proceedings.  The report deals with information relating to the business affairs of the Council and information in respect of which a claim to legal professional privilege could be maintained in legal proceedings and the public interest in maintaining the exemption currently outweighs the public interest in disclosing the information

The Council received and considered the report (exempt from publication at the date of the meeting) of the Head of Property regarding the acquisition of a commercial property.

It  was MOVED by Councillor Eber Kington and SECONDED by Councillor Clive Smitheram that:

“The Council:

(1)          Note the Acquisition Business Case attached as an Annexe to the report and authorise the necessary loan to, and investment in, the Company to enable the Company to purchase the property referred to therein to enable sale contracts to be exchanged forthwith;

(2)          Agree for the Company to opt to tax the property for the purposes of VAT;

(3)          Delegate authority to the Acting Director of Finance and Resources to conclude any final Council loan arrangement details to enable purchase of the property by the Company”

Upon being put, it was RESOLVED, there being 21 members in favour and 2 against, that:

(1)          the Acquisition Business Case attached as an Annexe to the report be noted and the necessary loan to, and investment in, the Company be authorised to enable the Company to purchase the property referred to therein to enable sale contracts to be exchanged forthwith;

(2)          the Company should opt to tax the property for the purposes of VAT;

(3)          authority be delegated to the Acting Director of Finance and Resources to conclude any final Council loan arrangement details to enable purchase of the property by the Company