Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
The Cabinet APPROVED:
(1) That the business case and purpose for Hold Co be approved, including delegating authority to the Director Regeneration and City Solicitor in consultation with the s.151 officer to create a new subsidiary company to support the delivery of HRA projects with development management and project management services.
(2) To note that the need for the creation of a fit-for-purpose Board of Directors for each of the incorporated Ravelin companies based around an understanding of the skillsets required to support the company in both a commercial and local authority environment.
(3) That new directors are appointed to Hold Co and Prop Co to ensure the companies can remain quorate and able to trade.
And RECOMMENDED TO COUNCIL approval of the following recommendations:-
(4) That authority is delegated to the Director of Finance and Section 151 Officer in consultation with the Leader of the Council, upon agreement of the business justification case's for each of the proposed development sites, to:-
(i) make changes to the budgetary framework as necessary
(ii) To borrow as required for Ravelin Group development purposes, subject to a robust financial appraisal approved by the Director of Finance & S151 Officer that demonstrates the delivery of the best return to Portsmouth City Council and has proper regard to the following:
· The relevant capital and revenue costs and income resulting from the investment over the whole life of the development.
· The extent to which the investment is expected to deliver a secure ongoing income stream.
· The level of expected return on the investment.
· The payback period of the capital investment.
· The tax status and transactional tax events associated with any land transfers or activity of the companies.
Report author: Tristan Samuels
Publication date: 28/02/2019
Date of decision: 26/02/2019
Decided at meeting: 26/02/2019 - Cabinet