Decision details

Exeter City Group Ltd Business Case (August 2018 to March 2019)

Decision Maker: Corporate Services Scrutiny Committee, Executive, Council

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No



That it is recommended that Council:--


(1)             approves the establishment of Exeter City Group Ltd and Exeter City Living Ltd;


(2)          notes that whilst Exeter City Homes Ltd and Exeter City Living Property Ltd have already been registered at Companies House, no approval was being sought for the Companies’ activities as their financial impact on the Council had not yet been assessed;


(3)          the Year One Business Case at Appendix A to be implemented by Exeter City Living Ltd for the period August 2018 to the end of March 2019;


(4)          develop a Registered Provider of Social Housing (RP) to take ownership of any social housing created as a result of Exeter City Living Ltd works, subject to a satisfactory business case demonstrating the RP’s viability being approved by the Council. The Registered Provider would be established and functional in advance of the availability of the social housing.  The two work streams to be linked to ensure appropriate staging would coincide;


(5)          approves a loan of £4.35 million pounds to Exeter City Living Ltd in order to implement and complete the year one Business Case set out in Appendix A;


(6)          approves the Management Agreement set out in Appendix B;


(7)          delegate authority be to the Director (David Bartram) to agree any necessary amendments to the Management Agreement in consultation with the Leader of the Council, the Chief Finance Officer and the appropriate three Portfolio Holders (currently the Portfolio Holder for Place and Commercialisation; the Portfolio Holder for People and in addition the Portfolio Holder Housing Revenue Account) and three Members of Scrutiny as appropriate – this to be clarified with the Chair and Deputy Chair of Corporate Services Scrutiny;


(8)          approve the Articles of Association for Exeter City Group Ltd and its subsidiary companies as set out in Appendix C;


(9)          delegate authority be given to the City Solicitor and Head of Human Resources in consultation with the City Surveyor to sell at open market value any council owned land identified in the Year One Business Case; and


(10)        delegated authority be given to the appropriate Director (currently David Bartram) to act in the role of Shareholder Representative and to undertake the activities and decisions as identified in the Shareholder Representative Delegated Powers Document (Appendix D), including the ability to financially commit up to £499,999 funding for use by Exeter City Living Ltd for matters not in the Year One Business Case (August 2018 – end March 2019); and


(11)        agree that the Vaughan Road development identified for year two of the Development Company’s operation will go forward, subject to the remaining assurance work. This is in order to ensure that the Housing Revenue Account is not disadvantaged and that the Development Company is able to deliver on Members’ expectations on Affordable Housing.



Reason for Decision:


As set out in the report.


Report author: Emma Osmundsen

Publication date: 12/07/2018

Date of decision: 10/07/2018

Decided at meeting: 10/07/2018 - Executive

Accompanying Documents: