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:

·           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.

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.      

The Council had before it a report of the Corporate Director (Corporate Services) which provided it 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 Members with information and recommendations to enable them to:

• 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 that report.

Council was aware that the Cabinet, at its meeting held on 25 November 2016, had considered this matter. The report submitted to the Cabinet was before Council as an Appendix to the Report of the Corporate Director (Corporate Services). Having considered the matter the Cabinet had resolved the following, that:

1. the external legal advice received that these 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 be noted;
2. Cabinet notes that it is proposed that, if appropriate terms can be agreed, the Local Delivery Vehicles will 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 agrees 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 be 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 endorses 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 be approved, in accordance with the terms set out in the report and Appendix 5 thereto;
8. the Corporate Director (Corporate Services), Martyn Knappett, be appointed to represent Tendring District Council as a Director on the Board of Tendring Colchester Borders Limited, and also that delegated authority be given to the Chief Executive of Tendring District Council to terminate that appointment and to undertake any future appointments;
9. in principle, Cabinet agrees 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 will 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.

Cabinet had also decided to recommended to Council that:

10. the decision of the Cabinet to set up and subscribe to North Essex Garden Communities Limited be noted;
11. the Cabinet’s endorsement of the formation of Tendring Colchester Borders Limited be noted;
12. the, in principle, decision of Cabinet 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 will 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, be endorsed; and
13. the external legal advice received that these 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.

The Corporate Director (Corporate Services) gave a short presentation to Members which summarised the key points of his report. His presentation covered the following matters:

(1)   the three themes and 10 principles – Place & Integration, Community and Delivery;

(2)  Tendring’s key messages – Homes, Infrastructure and Environment/Community;

(3)  Location of the proposed garden communities;

(4)  Size and Scale;

(5)  Delivery Models;

(6)  Making It Happen – Planning, Delivery Vehicle/Governance and Land Agreements;

(7)  Issues and Challenges;

(8)  Breakdown of Costs;

(9)  Infrastructure First;

(10)        Finance – key points; and

(11)        External Advice and Scrutiny.

During his presentation of point (11) above, the Corporate Director (Corporate Services) informed Council 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.

Though it was not a disclosable interest in this matter, Councillor G V Guglielmi wished it placed on record that his son worked for Ernst & Young (who were the external auditor for the project) in the USA.

The Council gave consideration to the recommendations made by the Cabinet and the contents of the Officers’ report and it was thereupon moved by Councillor Stock that:

(a)  the decision of the Cabinet to set up and subscribe to North Essex Garden Communities Limited be noted;

(b)  the Cabinet’s endorsement of the formation of Tendring Colchester Borders Limited be noted;

(c)  the, in principle, decision of Cabinet 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 will 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, be endorsed; and

(d)  the external legal advice received that these 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 Stock during his speech on the motion undertook, in his capacity as Leader of the Council, to set up a Portfolio Holder Working Party with cross-party representation that would scrutinise the progress of the Garden Communities project.

During Councillor Stock’s speech, it was moved by Councillor Turner, seconded by Councillor Honeywood and RESOLVED that the time limit for Councillor Stock’s speech be extended by a further five minutes.

Councillors I J Henderson, Heaney, Broderick, Talbot, Gray, Bray, Parsons, Stephenson, G V Guglielmi and Scott addressed Council during the debate on Councillor Stock’s motion.

During his speech the Leader of the Labour Group (Councillor I J Henderson) stated that his Group had concerns with regard to scrutiny, accountability and the Council receiving regular reports on the progress of the Local Delivery Vehicles. The Monitoring Officer then responded to the ethical points raised by Councillor Henderson with regard to declarations of interest by Board Directors and also the remuneration of Board Directors.

Councillor Stock’s motion, on being put to the vote was declared CARRIED.