Agenda item

Update by Gravitas Directors.

Representatives from Gravitas presented a progress summary in respect of the Wherry’s Lane development project:

• All information required in respect of planning conditions had been submitted and the conditions discharged or awaiting decision
• Draft leasehold agreements had been prepared so that sales would not be held-up
• Brochures and promotional material had been produced; these were being finalised
• A marketing weekend for the development was held on the 23 and 24 February 2019
• The project was progressing on programme
• The Help to Buy application had been submitted
• A scheme was being brought forward in Bourne that was being funded through the commuted sum from the Wherry’s Lane development

Members discussed the four properties that would be sold at discounted rates for first time buyers. Rosedales, the company marketing the development, were aware of the discounted scheme. Figures in the exempt report gave an overview of the number of enquiries that had been received by Rosedales in respect of the development. Members were interested in the demographics of the people who had enquired about the development; directors agreed to share any demographic information that was available.

In response to a request made at the Committee’s previous meeting, Members were advised of the liquidated damages arising from contract delays.

The Committee asked for an update on progress made in managing the increased costs of the project that were the result of contamination found on site. Members noted that costs had reduced with further savings still to be applied. Negotiations were underway with the developer to eliminate costs that were identified as part of the site survey and known prior to commencement on site. Members stated that the Directors should work to get this figure as low as possible.

A paper was circulated that outlined the profit that would be achieved by Gravitas in the context of benefits that the scheme provided for the Council:

• Income received by the Council from the transfer of land to Gravitas
• Income from the Section 106 Agreement
• Income from the re-charge of officer time
• Interest on the loan made by the Council to the company
• New Homes Bonus
• Additional Council Tax

At the conclusion of the project a detailed report would be produced and presented to the Council; the company would also submit the required reports to Companies’ House. Members agreed that Gravitas needed a strong communications strategy to set out the wider benefits of the scheme in a way that was easily understandable to other Members of the Council and Council Tax payers.

Members were advised that expressions of interest in the development had been across all housing types. Discussion ensued on the release of properties, which were being made available in two phases. The Directors stated that the development had not been marketed with investors as the steer from the Committee had been to market it to homeowners in the first instance.

Members asked at what point Gravitas would need to consider adjusting its disposal strategy. If there was not sufficient interest in purchasing the dwellings then flexibility had been built into the business model that would allow Gravitas to rent out the properties. Some members queried the rationale behind releasing properties from both blocks of flats as part of phase 1 and asked why the phases had not mirrored the separate blocks. Committee members asked to see a schedule of what was for sale as part of phase 1, the values attached to them and the views of directors about why one option was considered better than another.

Committee members expressed an interest in meeting in Bourne to view progress on the site and consider those matters that they had raised during the meeting.

Members were reassured that after the Shareholder Committee had been dissolved and the Companies Committee formed, the induction of new Members following the election would incorporate a full briefing on the Wherry’s Lane project.