To consider the above report

Members considered the report that provided an update on the RBWM Property Company Ltd.

The Lead Member informed that the report was an update on the activities of the RBWM Property Company.  With the appointment of Barbara Richardson as the property company Managing Director and the momentum built up with both the town centre and golf club joint ventures, this was a significand and important update that would be provided on a regular basis.

The report updated Members on the business plans, key performance indicators, governance, new appointments, properties and development programmes.

Members were informed that the company was projecting a net surplus of £82,000, with £75,000 being returned to the General Fund. There would also be a saving of £175,000 on consultant fees that the Council would have had to pay. This saving was as a result due to the new capability within the company. The Lead Member explained that he was particularly proud of this extra value added for the Council.

The Lead Member also informed that the current company structure was as a private limited company but not VAT registered one as rental income was not vatable. As consultant fees were VAT table it was recommended that a VAT element was established.  Members were informed that if the property company was VAT registered then it would be able to charge for consultative work.

The Chairman mentioned that fees would be paid to the RBWM Property Company and come back to the Council as part of its surplus rather than having to be paid to a third party.  To enable this the company had to be VAT registered.

The Lead Member for Culture and Communities asked for clarification on the management charge of £225,000 as detailed in section 4.2 of the report.  In reply Members were informed that this was for work undertaken by the property company that would otherwise have gone externally.  Although there would be a continued annual charge this would become self-funding and be a reduced amount then what was being paid if from within the Council.

The Lead Member informed that there had been two appointments, for a Head of Land and  an Operations Manager, these would start in January 2018 and March 2018 respectively.  There would also be appointments of non-executive directors.  The Chairman asked how many non-executive directors would be appointed and was informed that there would be three recommended by the company’s board.

The Lead Member for Culture and Communities mentioned that the property company currently owned 11properties and asked for the property type and if they were let to key worker.  Members were informed that there were 8 one-bedroom properties and 3 three-bedroom properties.  Some were let to key workers and at below market affordable rent.  Three of the tenants had been moved out of temporary accommodation.  Members recommended that there be a press release.

The Lead Member for Environmental Services asked how the tenants were chosen and was informed that the tenants had to be credit checked and in full employment.  The RBWM Housing Team were asked to nominate potential tenants based on need, next Housing Solutions would be approached and finally the company would look at private lets.

The Lead Member for Highways, Transport and Windsor asked if Radian Group had been approached as a partner and if properties would be available in Windsor.  Members were informed that the Radian Group had not applied to be a partner.  The RBWM Property Company would let properties across the Royal Borough and that there was a property in Windsor that had been let to a local resident.   It was anticipated that the majority of properties would be in Maidenhead due to the level of regeneration work.

The Lead Member for Planning and Health informed that Housing Solutions had managed properties for the Council for a number of years that were across the borough. 

The Principle Member for Ascot Regeneration asked how key workers applied for potential lets and was informed that this was via the Council’s housing team.  It was recommended that the Council’s Communications Team be utilized to inform how key workers could apply.

The Chairman declared that he had a non-pecuniary interest in Homes England (Homes and Communities Agency) due to his role as a director.  He informed Members that at the Conservative conference it had been announced that £2 billion would be made available for social housing.

The Lead Member gave a property update and informed that the company currently owned 11 properties and that there were a further 15 in the pipeline from the Brocket and St Edmunds.  The properties would be for key workers and at an affordable level in line with business viability.

A bid from Cala Homes for the site at Ray Mill Road East had been accepted that would provide 78 homes, with 20 affordable units being transferred to the Property Company on completion. This had been delayed due to the Environment Agency who had changed the designated flood zone reducing potential development on the site from 70% to 30% of site availability.

In response to questions Member were informed that the Council would be challenging the Environment Agency and would expect the restoration of the 70% site availability and that out of the 78 homes 37 would be affordable units.

The Chairman asked for an update on Ray Mill Road West and was informed that they were looking at either redeveloping the current properties with an additional property in the garden or if it was feasible to adding this site to Ray Mill Road East as a single development area.

(Cllr McWilliams joined the meeting)

The Lead Member went on to inform that with regards to the York Road joint venture that another consultation event was planned for the 19^th and 20^th January 2018 with a planning application expected in March 2018.  The Principle Member for Housing and Communications confirmed that there would be 30% affordable Housing and the Chairman mentioned that this Sub-Committee would be making a recommendation to Council.

With regards to the Maidenhead Golf Club Members were informed that there had been a successful launch event and that stage 1 of the process has produced 10 bids.  The Chairman requested a press release on the golf course timeline with continues updates on the project.

The Chairman mentioned that there would be increased momentum in 2018 and that communication was vital.

RESOLVED UNANIMOUSLY: that the Cabinet Regeneration Sub Committee notes the report and the planned work.