Agenda item

This report will not be published because the meeting is likely to be closed to the press and public in view of the nature of the business to be transacted/nature of the proceedings.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.