Agenda item

 With reference to Article 24 of the minute of its meeting of 14 December 2016, the Council had before it a joint report by the Interim Director of Communities, Housing and Infrastructure and the Interim Director of Corporate Governance which provided an update on progress with the Shaping Aberdeen Housing LLP and sought approval of the 5 Year Business Plan and various other matters to allow the project to proceed.

The report recommended:-

that the Council -

(a)          note the following:-

(1)       progress to date;

(2)       the Shaping Aberdeen Housing LLP Board approval of the 5 Year Business Plan on 13 January 2017;

(3)       for the purposes of VAT, that the Council would opt not to tax sites sold to Shaping Aberdeen Housing LLP, subject to the Council’s ability to make this decision and subject to the approval of the Head of Finance. The 30 year financial model and the 5 Year Business Plan reflected this VAT position on land transactions; and

(4)       the process for approval of the Shaping Aberdeen Housing LLP’s Business Plan:-

·         Shaping Aberdeen Housing LLP Board approval on 13 January 2017

·         Places for People Homes Limited Board approval by 15 March 2017

·         Full Council approval on 15 March 2017; and

(b)          approve the following:-

(1)       the Shaping Aberdeen Housing LLP’s 5 Year Business Plan (Appendix 1) which was derived from the 30 year financial model;

(2)       the loan facility of up to the value of £18million from the Council to the LLP providing an investment opportunity to the Council subject to final terms and conditions being agreed by the Head of Finance in conjunction with the Head of Legal and Democratic Services and the Interim Director of Communities, Housing and Infrastructure;

(3)       the extension of the £3million capital budget for meeting the initial development costs prior to sites being transferred from the Council to the LLP noting the provisions for recovery of these costs through top-slicing capital receipts from projected land sales as previously agreed at the meeting of the Council on 20 August 2014;

(4)       staff resources to support the programme as follows:-

·         the conversion of three posts of the Housing Programme Team (Housing Programme Manager, Senior Land and Development Manager and Administrative Assistant) to permanent posts; and

·         the deletion of one fixed term post of the Housing Programme Team (Consents Negotiator) noting that this post was vacated in January 2016;

(5)       funding the staff resources would be met by top-slicing capital receipts arising from land sales to Shaping Aberdeen Housing LLP;

(6)       that delegated authority be given to the Interim Director of Communities, Housing and Infrastructure to purify on the final land value receipt for the site at East Woodcroft taking cognisance of changes in market conditions and noting the recommendation agreed at the meeting of the Council on 8 October 2015; and

(7)       that delegated authority be given to the Interim Director of Communities, Housing and Infrastructure to purify on the final land value receipt for the site at Summerhill taking cognisance of changes in final construction programme, final construction and abnormal costs and developer contributions and noting the recommendation agreed at the meeting of the Council on 8 October 2015. The net land value requires to be purified as described above.

The Council resolved:-

(i)           to approve the recommendations;

(ii)          to instruct the Chief Executive to negotiate with Places for People on the delivery of 1,000 affordable homes and report back to the next Council meeting on the mechanism by which this could be achieved; and

(iii)         to agree that a media release be issued immediately following the decision, giving details of the Council’s decision on the Shaping Aberdeen Housing LLP 5 Year Business Plan.