Report of Head of Regeneration and Development to update Cabinet on progress on the Croxley Park transaction and changes made to the proposal which was submitted to and agreed by Cabinet on the 21 January 2019 and Council on 23 January 2019.

Cabinet received a report of the Head of Regeneration and Development.  The Mayor outlined that it was an important project for the council and future finances.  The council had been approached due to its good reputation and a large amount of work had been undertaken in order to progress the transaction.

Councillor Johnson thanked the Head of Regeneration and Development and his team for their work.  There were three recommendations to note: that the transaction had completed and the £92m has been received, that there had been changes to the transaction and to note the asset and management arrangements.  Cabinet was also recommended to approve the appointment of two new posts, one in the investment team and one in legal.

Councillor Johnson continued that the council would benefit from an expected net revenue gain of £1.5m per year for the next ten years and £1m per year thereafter.  There were discussions about how the £92m received would be invested.  For oversight the Property Investment Board would oversee decisions whilst a detailed business plan was worked upon.  It would then be decided how oversight would be taken forward.  Opposition councillors could request updates and there would be regular briefings on what was happening with the business park.

Councillor Watkin thanked finance officers and commented that there was short term income as well as greater security for the future.
  

RESOLVED

That Cabinet:

1.        Notes that the transaction to take a 40 year lease of Croxley Park and the option to buy the freehold at the end of the term for £10 has completed and that the payment of £92,000,000 has been made.

2.        Notes the changes to the terms of the transaction as outlined in the report.

3.        Notes the asset and management arrangements in place going forward.

4.        Approves the appointment of two new posts, one in the investment team to oversee the running of the Park for the council and the second in the legal team to undertake the day to day legal work generated by the park.