Issue - meetings

To consider the report of the Managing Director, Exeter City Living Ltd.

Agreed:

RESOLVED that the Executive note the midterm update report.

Reason for Decision: As set out in the report.

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The Executive received the report on the mid-term update on the Exeter City Living business plan covering the period March 2022 to 31st July 2022. The report was an informative update which provided an overview of the market conditions affecting the company over the last six months, including the challenges it faced in an unprecedented volatile construction sector, along with an update on Company activity. The Report did not propose any changes to the agreed Business Plan for 2022-2023.

The Managing Director, Exeter City Living Ltd made particular reference to:-

·        The challenges faced by procurement issues in the South West, which had caused delays to the start of construction on various sites;

·        The report provided a financial overview for the year to date, with an explanation for the key variations against the Budget for 2022-2023.,

·        The potential for an addition to the Company’s development pipeline strategy with the conversion and remodelling of existing stock. This potential strategy was being explored as a means of increasing the housing stock in the City ahead of new build developments commencing and as a means of reducing carbon by remodelling and re-using existing buildings.

·        There had been some notable progress including new homes commencing on sites at Hamlin Gardens, demolition works commencing at Clifton Hill and good progress with the Development Work stages for a number of new developments which had the potential to deliver over 600 new homes.

·        New staff had been appointed to Exeter City Living and the Company had also been providing consultancy services to Teignbridge District Council to assist them with their own ambitions to build new homes; and

·        The board structure for Exeter City Living was being addressed along with its governance arrangements and changes would be presented to the Executive and Council in due course.

Councillor D. Moore, as an opposition group leader, spoke on this item. She enquired as to whether the Company were in a position to repay its loan interest liabilities and further enquired on whether any new homes modelled from existing buildings would meet national space standards.

The Managing Director, Exeter City Living Ltd explained that the interest rate the Company paid on their loans varied as to when the loan was taken out by the Council for each development, but that the rate that the Council charged the Company was fixed, which was reflected in the Company’s budget and cash flow. The Managing Director confirmed that the size of homes created by ECL whether new build or from conversion would conform to the National Space Standards and Exeter City Council’s Residential Design Standards.

The Chair thanked the Managing Director, Exeter City Living Ltd for the update and acknowledged the issues faced by the company.

RESOLVED that the Executive note the midterm update report.