Issue - meetings

Consideration has been given to the urgent decision taken on the 20 December 2022 to change the terms of the Freight Site Business Plan to allow the freehold transfer of the former Freight Depot to Gateshead Regeneration LLP (GRP) as agreed by Cabinet on the 14 September 2021.

RESOLVED -

(i)

That the urgent decision taken on the 20 December 2022 by the Strategic Director, Resources and Digital to change the terms of the Freight Site Business Plan to allow the freehold transfer of the former Freight Depot to Gateshead Regeneration LLP (GRP) in accordance with Schedule 5, Part 2 General Delegations to Managers, Paragraph (4) (e) of the Council’s Constitution; and as previously agreed by Cabinet be noted.

(ii)

That the transfer of the freehold interest in the Freight Depot site in accordance with the Agreement for Sale to the GRP for the provision of new homes be noted.

(iii)

That the changes in the Homes England Local Authority Accelerated ConstructionGrant allocation, and the impact on the Capital Injection Agreements, now totalling the amount set out in the report, of which the Council contribution remains at the amount set out in the report be noted.

(iv)

That the changes to the distribution of profit and the terms of the distribution of super-profit to the Council as set out in the report be noted.

The above decisions have been made for the following reasons:

(A)

To support the delivery of 270 homes on the Freight Depot site.

(B)

It secures delivery of the site, overcoming significant viability and delivery challenges.

(C)

The Council is not putting funds in to close the additional viability gap.

(D)

The Council is still receiving an equal share of the profit after priority return, up to the profit required to meet the hurdle rates.

(E)

It will allow the site transfer to proceed, which will secure the private rented sector provider Sigma, via a contract with GRP.