Acquisitions and developments must conform to the adopted Regeneration and Investment strategy. Any deviation from the agreed strategy will require Council approval.
- The Council’s Senior Leadership Team will initially consider each proposal as an initial step and recommend that the proposal proceeds in principle to the Regeneration and Investment Committee.
- The Regeneration and Investment Committee (R&I) is made up of 3 Councillors, and chaired by the Portfolio Holder for Resources (which includes finance).
- When any decision to proceed with a development or acquisition is being considered, local Ward Members (where applicable) will be briefed at the earliest opportunity and be able to share their views with R&I Members and be consulted before the final decision is made. R&I, along with the Head of Paid Service and S151 officer, will consider each and every proposal on its own merits and specifically how each proposal meets the Council’s multiple objectives and desired outcomes.
- The Head of Paid Service in consultation with the R&I Members and S151 officer will consider debt proportionality (the amount borrowed to date against the net service expenditure ratio) on a case-by-case basis for each acquisition as part of the decision-making process, with information provided to them and the s151 officer, the Head of Paid Service and the Leader of the Council. Investment Indicators are set out within the Council’s Investment Strategy. Table 2 of the Council’s Investment Strategy shows the aggregate of Regeneration and property income and treasury income as a percentage of the Council’s gross service expenditure.
- The Council undertakes sensitivity analysis of the interest repayments on its borrowing requirements as a percentage of its available reserves to ensure there is sufficient coverage in the event that income is below that forecasted. The Council also put an appropriate proportion of rental income and/or income from energy prices into a Maintenance, Management and Risk Mitigation (MMRM) Reserve. This is part of the Council’s contingency arrangements.
- Officers, working with their specialist advisors in the market will sift opportunities and only present to the R&I, opportunities that closely meet the Strategy. They will then lead the R&I member into debate over the specific benefits and risks of each opportunity before the R&I Members make a decision. In this way, risk will be transparent through the process.
- Projects and their outcomes will be kept under constant review by officers and reports to Hub and Audit Committee.
Governance: Development on Council Owned Land
Development proposals on Council-owned land must conform to the objectives of this Strategy. Unlike commercial acquisitions however, they shall not benefit from the same scheme of delegation. Instead, approvals must be sought through the Hub committee and Full Council process. Decisions on in area development shall consider, as appropriate, the views of the local members and key stakeholders (Town Council / Parish Council) as one of many aspects of any projects brought forward.
The approvals process is as follows:
- Identify opportunity
- Inform Invest to Earn Committee (ItE) and SLT
- Assess against strategy/portfolio
- Initial cashflow and cost assessment
- Consult local members and Town / Parish Council
- Take to SLT and ItE in principle agreement to do further work ahead of possible decision
- Inform external consultants
- Feasibility design
- Cost assessment and cashflow modelling
- Due diligence (i.e. legal title)
- Consult further with town / parish councils and key stakeholders
- Consider the need for public consultation
- Take reports to Hub for approval for project
- Take report to Council for approval
- Commission full project team
- Secure tenant (agreement to lease)
- Work up planning submission and wait for planning approval
- Procurement strategy
- Construction phase
- Operation phase
Governance: Regeneration and Investment Acquisitions within the West Devon
The Council will delegate the authority and decision-making functions, including debt finance, relating to ‘Regeneration and Investment Acquisitions in West Devon’ to the Head of Paid Service in consultation with the Section 151 Officer and Members of the R&I committee, assuming that the proposed expenditure complies with the Council approved total borrowing limits.
- Any project will be subject to Due Diligence and Legal Searches and occasionally other data as need arises.
- Assuming the bid remains as per that authorised at the time of sign off, the final sign-off prior to exchange and payment of deposit (typically 10%) is made by the Head of Paid Service in consultation with the S151 officer and Leader of the Council. If anything material has changed, the R&I Members will be re-consulted.
- This process of delegated authority is required because there is often very little time (a number of days) to secure a bid on an opportunity of strategic interest, especially if it is off-market. Off market bids avoid price inflation caused by competing bidders.
- The R&I Members have been made aware that they will be required to process and respond in a very quick timeframe to provide their view.
- When West Devon Borough Council acquire a Regeneration and Investment in line with this strategy, a report will be presented (for noting purposes) to the subsequent meeting of the Hub Committee.
