Agenda item

To provide Members with a comprehensive overview of the proposals which have been developed over the past twelve months jointly with Colchester Borough Council, Braintree District Council and Essex County Council for Garden Communities in North Essex including one on the Tendring / Colchester border close to the University and, in particular, to provide Members with information and recommendations to enable them to:

·                              Establish governance arrangements for the project; and

·                              Agree, in principle to be a long term funder for the project, in partnership with the other Councils, subject to the terms and requirements set out in this report.

That:

1.            the external legal advice received that those decisions cannot and do not prejudge the outcome of any future decisions that the Council may make about the Local Plan to be made by Council in relation to the allocation of any Garden Community was noted;

2.            Cabinet noted that it was proposed that, if appropriate terms can be agreed, the Local Delivery Vehicles would enter into legal agreements with landowners to enable the delivery of the proposed schemes;

North Essex Garden Communities Limited

3.            in line with Executive Decision No. 2636 made on 22 January 2016 (minute 130) Cabinet agreed to set up and subscribe to North Essex Garden Communities Ltd in accordance with the terms set out in the report and Appendix 2 thereto;

4.            the North Essex Garden Communities Ltd shareholder agreement between the Local Authorities was approved, in accordance with the terms set out in the report and Appendix 3 thereto;

5.            The Leader of the Council, who is currently Councillor Neil Stock, be appointed to represent Tendring District Council as a Director on the Board of North Essex Garden Communities Limited;

Tendring Colchester Borders Limited

6.            in line with Executive Decision No. 2636 made on 22 January 2016 (minute 130), Cabinet endorsed the formation of Tendring Colchester Borders Limited by North Essex Garden Communities Limited in accordance with the terms set out in the report and Appendix 4 thereto;

7.            the Tendring Colchester Borders Limited shareholder agreement between the Local Authorities was approved, in accordance with the terms set out in the report and Appendix 5 thereto;

8.            the Corporate Director (Corporate Services), Martyn Knappett, was appointed to represent Tendring District Council as a Director on the Board of Tendring Colchester Borders Limited, and also that delegated authority was given to the Chief Executive of Tendring District Council to terminate that appointment and to undertake any future appointments;

9.            in principle, Cabinet agreed to provide an appropriate proportion of necessary funding to Tendring Colchester Borders Limited (by an appropriate combination of loan or equity), subject to a satisfactory business case setting out the full terms of the arrangement, which would need to accord with the approved Business Plans and masterplans for the project and the funding options available at the time any funding is required by the LDV. Such commitment to be subject to Council approval.

            RECOMMENDED TO COUNCIL that:

10.         the decision of the Cabinet to set up and subscribe to the North Essex Garden Communities Limited be noted;

11.         the Cabinet’s endorsement of the formation of the Tendring Colchester Borders Limited be noted;

12.         the, in principle, decision of Cabinet to provide an appropriate proportion of necessary funding to the Tendring Colchester Borders Limited (by an appropriate combination of loan or equity), subject to a satisfactory business case setting out the full terms of the arrangement, which would need to accord with the approved Business Plans and masterplans for the project and the funding options available at the time any funding was required by the LDV, be endorsed;

13.         the external legal advice received that those decisions cannot and do not prejudge the outcome of any future decisions that the Council may make about the Local Plan to be made by Council in relation to the allocation of any Garden settlement be noted.

Councillor Howard had earlier declared a Non-Pecuniary Interest in respect of this item insofar as he was currently an employee of the University of Essex.      

There was submitted a report by the Leader of the Council (Report A.2) which provided Cabinet with a comprehensive overview of the proposals which had been developed over the past twelve months jointly with Colchester Borough Council, Braintree District Council and Essex County Council for Garden Communities in North Essex, including one on the Tendring / Colchester border close to the University of Essex and, in particular, to provide Cabinet with information and recommendations to enable them to:

·           Establish governance arrangements for the project;

·           Agree, in principle, to be a long term funder for the project, in partnership with the other Councils, subject to the terms and requirements set out in the report.

Cabinet was aware that Tendring District Council, Braintree District Council, Colchester Borough Council and Essex County Council were collaborating in order to identify an agreed strategic approach to the allocation and distribution of large scale housing led, mixed use development, including employment opportunities and infrastructure provision, in the form of Garden Communities.

Members were reminded that those Councils had collaborated closely on the preparation of their individual Local Plans, with the draft Part 1 – which set out the approach to Garden Communities across North Essex from a Planning perspective – being identical in all three Plans.

Cabinet was advised that the report before it set out proposals whereby the Councils concerned could take a much more direct approach to ensuring that the proposed Garden Communities were delivered and that they met the high standards expected of them – in terms of housing quality and design, open space provision, roads, schools, healthcare facilities and sustainable transport systems.

The key elements in this approach were:

·      A Company – North Essex Garden Communities Ltd - owned equally by the four Councils to oversee the project across North Essex and to drive the delivery of the three planned communities;

·      Legally binding deals with local landowners to secure a share in the land value which would arise from the development in return for the Local Delivery Vehicles providing early infrastructure for the developments (with the infrastructure costs being paid for in due course from the land sales);

·      A Local Delivery Vehicle for each of the planned Communities with Council, landowner and independent membership and with the clear purpose of delivering a Garden Community (Tendring Colchester Borders Ltd); and

·      Clear Masterplans for each Garden Community to be developed.

The Chief Executive addressed the Cabinet and highlighted the salient points within the proposal. He also informed Cabinet that, as part of the project, an Independent Peer Review, had been commissioned and had commenced. The review was being led by Lord Kerslake and the results were due in December and would be made public. The findings would be carefully considered as the project progressed.

With the permission of the Chairman, Councillor Bucke spoke on this item and referred to various textual matters within the proposals which Officers agreed to take on board.

In accordance with Article 7.08 (1.5) of the Council’s Constitution, the Leader of the Labour Group (Councillor I J Henderson) requested that it be recorded in the minutes that his Group had concerns with regard to scrutiny, accountability and the Council receiving regular reports on the progress of the Local Delivery Vehicles.

Having considered the contents of the report and the proposals it contained it was moved by Councillor G V Guglielmi, seconded by Councillor McWilliams and:

RESOLVED that:      

1.         the external legal advice received that those decisions cannot and do not prejudge the outcome of any future decisions that the Council may make about the Local Plan to be made by Council in relation to the allocation of any Garden Community was noted;

2.         Cabinet noted that it was proposed that, if appropriate terms can be agreed, the Local Delivery Vehicles would enter into legal agreements with landowners to enable the delivery of the proposed schemes;

North Essex Garden Communities Limited

3.         in line with Executive Decision No. 2636 made on 22 January 2016 (minute 130) Cabinet agreed to set up and subscribe to North Essex Garden Communities Ltd in accordance with the terms set out in the report and Appendix 2 thereto;

4.         the North Essex Garden Communities Ltd shareholder agreement between the Local Authorities was approved, in accordance with the terms set out in the report and Appendix 3 thereto;

5.         the Leader of the Council, who is currently Councillor Neil Stock, be appointed to represent Tendring District Council as a Director on the Board of North Essex Garden Communities Limited;

Tendring Colchester Borders Limited

6.         in line with Executive Decision No. 2636 made on 22 January 2016 (minute 130), Cabinet endorsed the formation of Tendring Colchester Borders Limited by North Essex Garden Communities Limited in accordance with the terms set out in the report and Appendix 4 thereto;

7.         the Tendring Colchester Borders Limited shareholder agreement between the Local Authorities was approved, in accordance with the terms set out in the report and Appendix 5 thereto;

8.         the Corporate Director (Corporate Services), Martyn Knappett, was appointed to represent Tendring District Council as a Director on the Board of Tendring Colchester Borders Limited, and also that delegated authority was given to the Chief Executive of Tendring District Council to terminate that appointment and to undertake any future appointments;

9.         in principle, Cabinet agreed to provide an appropriate proportion of necessary funding to Tendring Colchester Borders Limited (by an appropriate combination of loan or equity), subject to a satisfactory business case setting out the full terms of the arrangement, which would need to accord with the approved Business Plans and masterplans for the project and the funding options available at the time any funding is required by the LDV. Such commitment to be subject to Council approval.

RECOMMENDED TO COUNCIL that:

10.      the decision of the Cabinet to set up and subscribe to the North Essex Garden Communities Limited be noted;

11.      the Cabinet’s endorsement of the formation of the Tendring Colchester Borders Limited be noted;

12.      the, in principle, decision of Cabinet to provide an appropriate proportion of necessary funding to the Tendring Colchester Borders Limited (by an appropriate combination of loan or equity), subject to a satisfactory business case setting out the full terms of the arrangement, which would need to accord with the approved Business Plans and masterplans for the project and the funding options available at the time any funding was required by the LDV, be endorsed;

13.      the external legal advice received that those decisions cannot and do not prejudge the outcome of any future decisions that the Council may make about the Local Plan to be made by Council in relation to the allocation of any Garden settlement be noted.