At its meeting on 6 September 2021, Cabinet gave delegated authority to the Chief Executive, to dispose of land at Blackfriars, Battle to the Council’s Housing Company on terms agreeable to him in consultation with the (then) Cabinet Portfolio Holder for Finance and Performance (Minute CB21/33 refers). 

It was intended that the housing land would be sold to RDC Housing Company Limited (RDCHCL) to procure a development partner to deliver the site.  Furthermore, it was expected that the minimum price paid by RDCHCL should not be less than the unfunded costs incurred by the Council in making this scheme ‘build ready’.

Since that time, several valuations had been carried out by the Royal Institute of Chartered Surveyors; the latest valuations were being reviewed to reflect the economic predictions, the margins being paid to the contractors and the delivery of the original home specifications.  The latest valuation was lower than originally anticipated which could result in a zero-capital receipt in the 2022/23 financial year.  This could reduce the total level of funding to RDCHCL and have an impact on the timing of available funding for the Council’s wider capital programme.  It was still envisaged that as sole owner of RDCHCL, the Council would receive an overage receipt for the homes sold by RDCHCL.  This would materialise over several years and would be dependent on the phasing of homes delivered, commercial arrangements and economic pressures.

In addition, and for the sake of accuracy and completion, the matter now falls under the Cabinet Portfolios for Transformation, Procurement and Social Value along with Finance and Performance Management.

Cabinet agreed that the delegation to the Chief Executive to dispose of land at Blackfriars, Battle to Rother DC Housing Company Ltd on terms agreeable to him in consultation with the Cabinet Portfolio Holders for Transformation, Procurement and Social Value and Finance and Performance Management be confirmed.

RESOLVED: That the delegation to the Chief Executive to dispose of land at Blackfriars, Battle (as outlined at Appendix A) to Rother DC Housing Company Ltd on terms agreeable to him in consultation with the Cabinet Portfolio Holders for Transformation, Procurement and Social Value and Finance and Performance Management be confirmed.

(Councillor J. Barnes declared a Personal Interest in this matter as Director of Rother DC Housing Company Limited and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof).