Customer Services Cannards Grave Road, Shepton Mallet, Somerset BA4 5BT Telephone: 0300 303 8588 Fax: 01749 344050 Email: [email protected] www.mendip.gov.uk Phoenix Board Wednesday 23 December 2020

Via Live Stream

2 pm

Lead Officer: Tracy Aarons E-mail: [email protected]

Democratic Services Officer : Helen Bowen E-mail : [email protected]

Members of the Phoenix Board: Councillors Josh Burr (Deputy Chair), Simon Carswell, Barry O’Leary and Ros Wyke (Chair)

Councillor Tom Killen is also invited

Officers: Tracy Aarons, Richard Bates, Stuart Brown, Elizabeth Dawson, Keith Pennyfather, Adam Savery, Sara Skirton, Naomi Wilson

1

1 Notes 1. Length of meeting - Normally the meeting will end when all the business on the agenda has been completed. As soon as this meeting has lasted for three hours the Chair will ask members to vote on whether to end the meeting. There will be a short briefing from officers on implications but no debate on whether the meeting should end. If the vote is in favour of ending the meeting it will end immediately or at such point as the meeting agrees.

2. Reports – some agenda items refer to reports that have been produced. The full reports are only sent to relevant Members. If you wish to see a non-confidential report you can access it via the Mendip District Council web-site at www.mendip.gov.uk. If you wish to have a hard copy of the report then please contact the Committee Officer (details on page 1 of the agenda). For members of the public requesting hard copies sent by post a charge may be raised.

3. Declarations of Interest – If a member of the Board/Committee has a personal or prejudicial interest in any agenda item during this meeting they should now declare its existence and nature publicly.

4. Public Speaking – At the Chair’s discretion, members of the public can participate at meetings of a Council body by making representations on any matter. The maximum time for each speaker is three minutes, with a maximum time of 20 minutes for all speakers in total. Anyone who wishes to speak must either; a) notify the Committee Officer (details on page 1) at least three hours before the start of the meeting, or b) complete the form which will be in, or immediately outside, the room where the meeting is going to take place and hand this to the Committee Officer before the start of the meeting. Items on the agenda – The public may either speak during the Public Participation agenda item or before the agenda item of interest. Items not on the agenda - Any matters raised cannot be debated at the meeting but may be referred to a future meeting.

5. Exclusion of the Press and Public - The Local Government Act 1972 allows the public to be excluded from any Council meeting during any item of business on the grounds that confidential or exempt information is likely to be disclosed. “Confidential” and “exempt” are each defined by the Local Government Act, and there is an important difference between them. The public must be excluded from a meeting if “confidential” information is likely to be disclosed. However, if the information likely to be disclosed is “exempt”, members have discretion. They may exclude the public by passing a resolution, but are not obliged to do so.

6. In accordance with the Openness of Local Government Bodies Regulations 2014 recording is allowed at all formal meetings of the authority to enable those not present to see or hear the proceedings either as they take place (or later) and to enable the reporting of those proceedings.

Those wishing to record proceedings should, as a courtesy, inform the chair (or Democratic Services Officer) of the committee of their intentions prior to the meeting. 2

2 AGENDA

1 CHAIR’S ANNOUNCEMENTS • The Chair will give their announcements. • The Chair will explain the procedure for Virtual Meetings. • Mobile phones should be set to silent.

2 APOLOGIES FOR ABSENCE To receive apologies from Members who are unable to attend the meeting.

3 DECLARATIONS OF INTEREST See Note 3 If a Member of the Council present at the meeting has a personal or prejudicial interest in any agenda item during this meeting they should now declare its existence and nature publicly.

4 PUBLIC PARTICIPATION See Note 4

5 PREVIOUS MINUTES To consider the minutes of the meeting held on 12 August 2020.

6 APPROVAL OF THE REVISED PUBLIC MINUTES FROM 1 APRIL 2019 TO PRESENT

7 URGENT BUSINESS

EXEMPT AND CONFIDENTIAL REPORTS

8 EXCLUSION OF THE PRESS AND PUBLIC The Phoenix Sponsorship Board is asked to consider whether a resolution should be passed to exclude the press and public from the meeting during items 9 and 11 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 Information relating to the financial or business affairs of any particular person (including those of the Council).

3

3 9 PREVIOUS MINUTES To consider the confidential element of the minutes of the meeting held on 12 August 2020.

10 PROPOSED TENANCY FOR FINZEL’S REACH – UNIT 2 FERMENTATION BUILDING

11 SAXONVALE PROJECT GOVERNANCE REVIEW This report will follow.

This is an outstanding matter which has now been resolved. It is important to seek Phoenix Board approval and given no additional meetings of the Board are currently scheduled, the report is submitted for urgent consideration.

4

4 MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Wednesday 12 August 2020 via Live Stream at 3.15pm

PRESENT: Councillors Peter Goater, Tom Killen, Janine Nash, Barry O’Leary and Ros Wyke (Chair)

OTHER COUNCILLORS PRESENT: Alison Barkshire, John Clarke, Michael Dunk, and Tom Ronan

OFFICERS PRESENT:

Tracy Aarons Deputy Chief Executive Richard Bates Section 151 Officer Helen Bowen Democratic Services Officer Elizabeth Dawson Commercial Transformation Manager Claire Dicken Democratic Services Officer Jo Mickens Property Officer Keith Pennyfather Property Team Leader Adam Savery Senior Property Officer Jane Sharp Shape Mendip Project and Improvement Officer Sara Skirton Group Manager, Corporate Services Ben Sugg Democratic Services Officer Naomi Wilson Enterprise Project Coordinator

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair requested that mobile phones be switched to silent and explained how the livestream meeting would proceed.

2 Apologies For Absence

None

3 Declarations of Interest

None

4 Public Participation

None

1 5 5 Exclusion of the Press and Public

RESOLVED:

That the press and public be excluded from the meeting during the consideration of items 7 and 8 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting Claire Dicken

It was moved by Councillor Peter Goater and seconded by Councillor Janine Nash and

RESOLVED:

That the minutes of the meeting held on 9 December 2019 be confirmed as an accurate record, subject to the following amendments:

• That on page 1, Elizabeth Dawson be removed from the attendance list.

• That on page 15, item 11, Procurement to Appoint an Energy Investment Consultant;

o Enterprise developed the paper (Procurement to Appoint an Energy Investment Consultant) not the Property Team

o Change name to Donna Nolan

o Change that the Energy Investment Strategy which has been developed by Corporate Services is in draft form and is awaiting review by the procured Energy Investment Consultant, after which it will be presented to Cabinet for approval.

2 6

7 Saxonvale Update

The Saxonvale Project Team gave an update on Saxonvale the progress of the principal aspects of the project, Project Team which sought from the Board on some key matters.

The Portfolio Holder for Enterprise and Finance gave a brief introduction to the Saxonvale Project and gave an update on the key elements of the project:

• Kingsway • Frome Town Council • Silk Mill • Remediation Survey and Environmental Insurance • Acorn Update • Hoarding Arts Project • Enabling and Promotion Budget • Project Governance • Home England Grant Works

Officers hoped to come back to the next meeting of the Board to give further detail about the Scape Project.

Councillor O’Leary proposed that the recommendations in the report be accepted. Councillor Peter Goater seconded the proposal and it was

RESOLVED:

1. That the contents of the report be noted.

2. That the projected cost estimate for the acquisition, improvement and adoption of Kingsway at a cost specified in the report, be approved; and solicitors instructed to prepare a conditional purchase contract.

8 Urgent Business – Frome – Land Swap Jo Mickens

The Property Officer had prepared a report which set out recommendations for a land swap of two parcels of land. 3 7

The report said that the proposed scheme was part of MDC’s Housing Development Sites project. This had identified a number of Mendip owned sites as potentially suitable for housing development. These schemes would help to address the under- supply of social-rented homes in the district and would create a commercial opportunity for the Council.

This development would create approximately eighteen 1 & 2 bed homes and would retain approximately half of the parking on the site.

The Ministry of Housing Communities and Local Government’s Land Release Fund (LRF) aimed to support local councils in preparatory works, to release unused or surplus land for housing. And a grant had been awarded to MDC. This funding was earmarked for improvements to access and due diligence activity to bring sites forward ready for development. Those improvements would benefit the site generally, and are not specifically linked to the social housing programme.

The report continued that Engineering Consultants, had revealed the need for improvements to eliminate the existing entrance and consolidate entry and exit in one location.

In the discussions that followed one Member noted that the valuation report was dated November 2019. Members asked if the Officer could check if the valuation was still valid.

Councillor Barry O’Leary proposed that delegated authority be given to Officers to go ahead with the recommendations in the report subject to going back to the DVS to update the valuation. Councillor Peter Goater seconded the proposal which was carried.

RESOLVED:

That subject to going back to the DVS to update the valuation, delegated authority be given to officers to:

1. Approve the freehold acquisition of the land required to create improved access to the site and the car park at a price specified in the

4 8 report.

2. In exchange, approve the sale of a surplus piece of land at the rear of Farleigh College, to enhance learning opportunities for young people, at a price specified in the report.

3. Approve the sales receipt being offset against the purchase payment, with a balance of specified in the report to be applied to Land Release Fund monies.

The meeting closed at 4.20 pm.

5 9

MENDIP DISTRICT COUNCIL

Public Minutes of the meeting of the Phoenix Sponsorship Board held on Thursday, 18 April 2019 in the Committee Room, Council Offices, Shepton Mallet at 10.00am.

PRESENT: Councillors Philip Ham, Tom Killen (by telephone connection), Harvey Siggs (Chairman) and Ros Wyke

OFFICERS PRESENT: Donna Nolan Deputy Chief Executive Keith Pennyfather Property Team Leader Jane Sharp Shape Mendip Project and Improvement Officer – joined the meeting for item 11 Samphire Bartholomew Member Support & Committee Officer

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. He went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

None

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

Resolved:

That the press and public be excluded from the meeting during consideration of items 6 to 12 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

1 10

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting

Resolved:

That the minutes of the Phoenix Sponsorship Board meetings of 31 January 2019 and 1 March 2019 be agreed as an accurate record of proceedings.

7 Investment Opportunity

The Deputy Chief Executive presented the Board with a report detailing an investment opportunity. The purpose of the report was to ensure urgent action taken by officers, to submit a bid, could be formally recorded. It was noted that the action had been taken in full consultation with Board Members.

During the discussion, officers outlined progress. Members sought clarification on the options available to the Council, which were clarified at the meeting.

Resolved:

1. That the action taken by officers under delegated authority to submit a bid to acquire a property, be noted.

2. That members be kept appraised of progress.

3. That the Deputy Chief Executive be granted delegated authority to agree terms, undertake required levels of due diligence and legal analysis.

4. That it be noted that the outcome of the due diligence and legal analysis be reported to the Board in due course, where a final decision will be made as to whether to procced with the acquisition.

8 Investment Opportunity

The Deputy Chief Executive presented the Board with a report detailing progress with the exchange of contracts for the re-development of land.

2 11 The purpose of the report was to ensure the exchange of contracts undertaken by officers was formally recorded. It was noted that the action had been taken in full consultation with the Leader.

Resolved:

1. That approval be given to the exchange of contracts for the acquisition of land, subject to specific action being taken, with completion taking place on 30 September 2019.

2. That delegated authority be granted to the Deputy Chief Executive, Group Manager for Corporate Services and Corporate Serves Manager for Commercial Transformation, in consultation with the Deputy Leader for and Portfolio Holder for Transformation, to take the necessary steps to complete the acquisition on 30 September 2019.

9 Investment Opportunity

The Property Officer presented a report which outlined property acquisition investments to create new and secure income streams, through the acquisition of tenanted property and development sites and buildings.

Members of the Board were informed of options and issues to consider. Further clarification was provided during the debate.

Resolved:

1. That on the basis of the information provided, to make an offer on the site in question.

2. That delegated authority be granted to the Deputy Chief Executive in consultation with the Council’s Section 151 officer and the Leader, to submit and then, if appropriate, negotiate a bid within the range specified.

3. That the Board be kept appraised of progress.

4. That the Deputy Chief Executive be granted delegated authority to agree terms, undertake required levels of due diligence and legal analysis.

3 12

5. That it be noted that the outcome of the due diligence and legal analysis be reported to the Board in due course, where a final decision will be made as to whether to procced with the acquisition.

10 Investment Opportunity

The Property Team Leader presented a report detailing the satisfaction of pre-condition 2 of the sale and overage. It was explained that this was the Council’s approval, as landowner, of a proposed planning application.

The Board was advised that, subject to the Board’s decision, a number of other stages would need to be completed before the application process would be concluded.

Members discussed report and the merits of the proposal and sought clarification on the process followed. Officers clarified the points raised.

Resolved:

1. That the contents of the report be noted.

2. That approval be given to the draft planning application in compliance with Clause 4.4.2 and Schedule 2 of the Sale and Overage Agreement.

3. That it be noted, if approved, the planning application will be submitted by a third party on behalf of the applicant.

4. That approval be given to the deferral of the letting strategy condition contained in Clause 4.4.6 and Schedule 6 of the Sale and Overage Agreement to 1 September 2019.

11 Investment Opportunity

The Shape Mendip Project and Improvement Officer advised the Board that the Council had been exploring options to secure external funding in support of a project. As a result a grant application had been submitted.

4 13 The Board was advised that certain conditions applied to the grant. Officers highlighted the risks and opportunities, should the grant be accepted.

Members discussed report and the merits of the proposal and sought clarification on the process followed. Officers clarified the points raised.

Resolved:

1. That the ‘in principle’ offer of a grant be accepted in accordance with the conditions highlighted.

2. That delegated authority be granted to the Deputy Chief Executive to notify the terms of the ‘in principle’ grant on behalf the council.

3. That delegated authority be granted to the Deputy Chief Executive to negotiate a final position to satisfy obligations, with parties concerned.

4. That the potential range of scenarios in which a percentage of the grant be repaid, be approved.

5. That delated authority be granted to the Deputy Chief Executive to -

• Enter in to a funding agreement. • Agree the final scope of grant funded works. • Commission external support to provide initial technical consultancy support to develop specifications for the scope of the grant funded enabling works. • Develop and deliver a procurement strategy based on a framework agreement to secure the specialist resources required for delivering the enabling works. • Negotiate and enter into a Side Agreement (or alternative for of legal agreement) to the Sales and Overage agreement. • Put in place programme management arrangements in relation to the delivery of the new aspect of the programme and also to oversee the enabling works. • Take all other necessary actions, to give effect to the decisions of the Board in relation to this matter.

5 14 6. That authority be delegated to the Section 151 Officer and the Project and Improvement Officer to deal with all matters to the administration of the grant funding.

7. That decision making, oversight and monitoring of this new element of the programme be undertaken by the Board.

8. To note that the grant funding represented a significant change in direction for the programme requiring a reallocation of internal resources and that senior management would keep the implications and emerging position under review.

12 Project Board Notes

Resolved:

That the notes of the meeting held on 28 March 2019 be noted.

13 Urgent Business

None

14 Any Other Business

Mindful of elections on 2 May 2019, the Phoenix Sponsorship Board reflected on their approach to commercial property investments over the past 15 months.

The key objective had been to provide additional resources for the Council through direct investment in commercial property, delivering income and capital growth, in the long term. The objective central to the approach of the Phoenix Sponsorship Board was to grow new secure net income to protect Council services.

The approach of the Phoenix Sponsorship Board in delivering this objective had been to develop a balanced commercial property portfolio delivering income from high quality assets with strong commercial strength. They had developed this portfolio with the benefit of multi-disciplinary

6 15 property and legal advice, and with a detailed business cases for each acquisition.

The Phoenix Sponsorship Board recommended that the new administration continue to deliver the objective to grow new secure income to protect Council services, in a robust and measured way.

Officers were requested to prepare a briefing paper for the new administration to ensure they were appraised on the objectives and approach of the Phoenix Sponsorship Board.

It was noted that the Board’s approach had been endorsed at Full Council, with all party support to the use of borrowing to deliver financial objectives.

The meeting closed at approximately 1pm.

7 16 MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Monday, 1 July 2019 in the Council Chamber, Shepton Mallet at 5:30 pm.

PRESENT: Councillors Janine Nash, Barry O’Leary and Ros Wyke

OFFICERS PRESENT: Samphire Bartholomew Member Support & Committee Officer Stuart Brown Chief Executive Paul Deal Section 151 Officer Keith Pennyfather Property Team Leader Donna Nolan Deputy Chief Executive

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. He went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

Apologies were received from Councillor Peter Goater.

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

Resolved:

That the press and public be excluded from the meeting during items 6 to 9 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description, is likely to be disclosed:

1 17

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting

Resolved:

That the minutes of the Phoenix Sponsorship Board meeting held on 18 April 2019 were approved as an accurate record of the proceedings.

7 Investment Opportunity (Glastonbury)

The Board was informed of an investment opportunity, the details of which were outlined at the meeting.

Members discussed the proposal and sought clarification on the options and timeframe. It was reported that the proposal was considered an appropriate opportunity for the Council to progress to meet the aspirations of the Medium Term Resources Strategy.

Resolved:

1) That delegated authority be granted to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to submit and then, if appropriate, negotiate a bid in respect of the property up to a maximum level as advised.

2) That Phoenix Board be kept appraised of the bidding process.

3) That in the evet of the Council’s bid being successful, delegated authority be granted to the Deputy Chief Executive to agree Heads of Terms, and instruct consultants to undertake the required level of due diligence and legal analysis.

4) That it be noted that the outcomes of due diligence and legal analysis will be reported to the Phoenix Sponsorship Board in due course with a final recommendation as to whether to proceed with the acquisition.

2 18

8 Investment Opportunity (Frome)

The Board was informed of an investment opportunity, the details of which were outlined at the meeting. It was reported that the property had not been inspected.

It was added that the proposal was considered an appropriate opportunity for the Council to progress to meet the aspirations of the Medium Term Resources Strategy.

Resolved:

1) That delegated authority be granted to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to submit and then, if appropriate, negotiate a bid in respect of the property up to a maximum level to be advised.

2) That the Phoenix Board be kept appraised of the bidding process.

3) That in the vent of the Council’s bid being successful, delegated authority be granted to the Deputy Chief Executive to agree Heads of Terms, and instruct consultants to undertake the required level of due diligence and legal analysis.

4) That it be noted that the outcomes of due diligence and legal analysis will be reported to the Phoenix Sponsorship Board in due course with a final recommendation as to whether to proceed with the acquisition.

9 Urgent Business

None

The meeting closed at approximately 6:30 pm.

3 19

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Friday, 12 July 2019 in the Council Chamber, Shepton Mallet at 1:00 pm.

PRESENT: Councillor Peter Goater

PRESENT BY TELEPHONE CONNECTION: Councillors Shane Collins, Janine Nash, Barry O’Leary and Ros Wyke

OFFICERS PRESENT: Samphire Bartholomew Member Support & Committee Officer Paul Deal Section 151 Officer (Chair) Adam Savery Senior Property Officer

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. He went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

Apologies were received from Stuart Brown, Donna Nolan and Keith Pennyfather.

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

Resolved:

That the press and public be excluded from the meeting during items 6 to 9 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

1 20

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting

Resolved:

That consideration of the minutes held on 1 July 2019 be deferred until the next meeting due to them being received at short notice.

7 Investment Opportunity (Industrial Estate)

The Portfolio Holder for Corporate Services and Performance Management and the Portfolio Holder for Enterprise and Finance presented a report on a property investment opportunity.

It was reported that Board had previously considered the Heads of Terms on 23rd October 2018 and agreed to proceed subject to the due diligence detailed in the report.

Members were advised of the options considered. It was reported that following a robust due diligence process, the proposal was considered an appropriate opportunity, for the Council to progress the acquisition to meet the aspirations of the Medium Term Resources Strategy.

Resolved:

1. That the detailed information contained in the body of the report, be noted.

2. That no further due diligence investigations, or supplemental advice, are required to inform this matter.

3. That the acquisition be approved in accordance with the terms specified in the report.

4. That delegated authority be granted to the Section 151 Officer and the Chief Executive in consultation with the Leader, to confirm the financial structure of the transaction, and subsequently for the Section 151 Officer specific to the circumstances of this acquisition.

2 21

5. That delegated authority be granted to the Deputy Chief Executive, in consultation with the Portfolio Holder for Corporate Services and Performance Management, and the Portfolio Holder for Enterprise and Finance, to agree and enter into final transactional terms in accordance with the Heads of Terms.

6. That an update report be presented to Cabinet following completion of the transaction.

7. To that financial implications required to complete the purchase be noted.

8. That in the interests of transparency and good governance the reports attached as appendices to the report would be retained with the minutes.

8 Investment Opportunity (Frome)

The Portfolio Holder for Enterprise and Finance presented a report, which provided an update on a potential acquisition considered by the Board on 1st July 2019.

The Board was informed that bids must be received by Tuesday 16th July 2019.

Members debated the options and risks and sought clarification on a number of technical matters. Officers provided reassurance on the due diligence process. The proposal was considered an appropriate opportunity for the Council to progress to meet the aspirations of the Medium Term Resources Strategy.

Resolved:

1. That the specialist update report be noted.

2. That the recommended bid level be approved.

3. That the previous delegation to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to submit and then, if appropriate, negotiate a bid in respect of the property up to the maximum level as advised, be noted.

3 22

4. That the Board be kept appraised of the bidding process.

9 Urgent Business

An update was given on an earlier bid.

The meeting closed at approximately 2:20 pm.

4 23

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Wednesday 14 August 2019 in the Council Chamber, Shepton Mallet at 9:00 am.

PRESENT: Councillors Shane Collins, Peter Goater, Janine Nash, Barry O’Leary and Ros Wyke

OFFICERS PRESENT: Stuart Brown Chief Executive Paul Deal Section 151 Officer Keith Pennyfather Property Team Leader Adam Savery Senior Property Officer Jane Sharp Performance & Improvement Officer Sara Skirton Group Manager, Corporate Services Ben Sugg Committee Officer Haylee Wilkins Group Manager, Neighbourhood Services

ALSO PRESENT: Councillors Philip Ham and Nigel Woollcombe-Adams

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. He went on to explain the evacuation procedures in the event of an emergency.

2 Apologies for Absence

None.

3 Declarations of Interest

The Chair declared a personal, non-prejudicial interest in relation to item 22 as she was involved in the Strawberry Line Association.

4 Public Participation

None

5 Exclusion of the Press and Public

Resolved:

1 24

That the press and public be excluded from the meeting during items 6 to 23 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972 as amended) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting

Resolved:

That the minutes of the held meetings held on 12 July 2019 and 17 July 2019 be approved as an accurate record of the proceedings.

7 Saxonvale Project Board Minutes

For information, Members considered the minutes of the meeting held on 6 June 2019.

8 Saxonvale Project Update

The Portfolio Holder for Enterprise and Finance and the Portfolio Holder for Economic Development presented a report that gave an update on progress on the principal aspects of the project.

The Property Team Leader explained that whilst the project was complex, no unexpected issues had arisen. It was added that progress continued at pace and strategic outcomes remained on target.

In response to questions from Members, the Property Team Leader explained that further details of engagement would be presented to the Board once available.

Resolved:

1. That the update on progress on the principal aspects of the project be noted.

2. That delegated authority be granted to the Deputy Chief Executive, in consultation with the Leader and the Portfolio Holders for Enterprise and Finance, and Economic 2 25

Development, to progress negotiations as specified and to bring back a report to the Board, once the Heads of Terms have been agreed.

3. That costs incurred against the approved budget in respect of enabling expenses be noted.

9 Update on Homes England LA-AC Grant

The Portfolio Holder for Enterprise and Finance outlined the background to the grant application which was submitted in January 2019.

This was a grant for local authorities and covered the cost of enabling works to make the site ‘clean’ to support the delivery of homes and help maximise the land value back to local authorities.

The Board was advised of the various options relating to the grant process.

Resolved:

That the item be deferred to the next meeting of the Board in order that further information could be included in the report.

10 Energy Investment Strategy

The Portfolio Holder for Enterprise and Finance presented a report that detailed the delivery of a strategic commercial approach to investing in energy production and storage to generate income.

The Section 151 Officer highlighted the investment requirements. The Chair asked that the Section 151 Officer provide advice to the Board on some of the investment schemes.

The Chief Executive suggested that the report be presented to the Scrutiny Board for consideration prior to resubmission to the Phoenix Sponsorship Board.

Resolved:

That the report be referred to the Scrutiny Board for consideration and comment. 3 26

11 Housing Development Sites and Delivery Options

The Portfolio Holder for Enterprise and Finance presented a report that reviewed the opportunities and potential models for housing development on Council-owned sites, and the acquisition of further land for housing delivery. The purpose being to ensure that the widest benefit was derived from the Council’s landholdings.

It was added that a significant amount of strategic analysis had been undertaken to understand the potential development opportunities within the Council’s land holding.

The Board debated options. Members remarked that the Council should be considering social housing as well as affordable housing. Members commented that adequate social housing was not currently being supplied.

The Chair asked that a paper be produced addressing social housing needs and options for delivery of additional social housing. She remarked that it was important to understand the available options and the concerns of Town and Parish Councils.

Resolved:

1. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to progress soft market testing, due diligence and analysis of preferred delivery models and disposals options for housing development on a number of sites.

2. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to take all actions required to conclude the purchase of a site and price, as specified in the report, subject to the receipt of a satisfactory report from the Council’s valuer.

3. That authority be delegated to the Deputy

4 27

Chief Executive, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, for discussions to be initiated regarding the provision of a new shared roadway, as specified in the report.

4. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to progress further analysis of housing development potential of the medium sites mentioned in the report. A shortlist of appropriate sites be prepared and brought back to Board with a summary of potential delivery models and disposal options in due course.

5. That Minor Sites, as defined in the body of the report, be not disposed of.

6. That delegated authority be granted to the Deputy Chief Executive, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to select and appoint a local land buying agent to search for and appraise further land for the provision of Affordable and Social Housing in the District.

7. That authority be granted to the Deputy Chief Executive to consult with Homes England over further opportunities to secure grant funding.

12 Frome: Open Space Area in MDC Ownership

The Portfolio Holder for Enterprise and Finance presented a report which stated that Mendip District Council owned open space, with an approximate area of 1 acre, which was underutilised, largely overgrown and subject to fly tipping. The site had only very poor pedestrian access and was subject to encroachment by neighbouring residents, some authorised and regularised, others not.

The recommendations sought to address issues affecting the underutilised Council owned site and to gain a steer from Members as to how to move matters forward to achieve better use of the asset and to comply with best consideration obligations.

Members were informed that the authority had an

5 28

obligation to seek to use its assets effectively or to dispose of them taking into account of ‘best consideration’. As such, and in order to seek to address the future of the site and some of the challenges associated with it, the Council had over several years been seeking to achieve a vehicular access over neighbouring land owned by other parties. Potential agreement with these parties had been reached in broad outline (although Heads of Terms were not entered into).

It was highlighted that there were mixed views regarding the future of the site and therefore any way forward was likely to prove contentious. The report summarised the options and challenges affecting the site.

Resolved:

A. That the contents of the report be noted.

B. That approval be given to the body of the site subject for consideration of alternative use excluding the area subject of historic encroachment in excess of 10 years, but that in due course financial negotiations would be entered into as appropriate to formally Transfer the land; and that delegated authority be granted to the Corporate Services Group Manager in consultation with the Portfolio Holder for Corporate Services and Performance Management to finalise agreements.

C. That a soft marketing exercise seeking expressions of interest in the site to gain a better understanding of current substantive interest, potentially including a submission - enabling the opportunity for more detailed consideration of interest from a commercial, social, environmental and economic perspective to inform a preferred approach(es).

D. That delegated authority be granted to the Deputy Chief Executive in consultation with the Leader of the Council and Portfolio Holder for Enterprise and Finance to progress negotiations with appropriate parties with regard to the approach preferred at C above, noting that a business case (with draft Heads of Terms as appropriate) will be brought back

6 29

to the Phoenix Sponsorship Board once a preferred approach was agreed, in principle.

13 Street, Opportunity in Respect of Council Landholding

This report provided an update in respect of on- going preliminary work and dialogue with the long leasehold owners of the former Tesco unit at the Street Crispin Centre (LMC Overseas Investments Ltd) and the freehold owners of the wider Crispin Centre (LS Street Ltd), which was exploring the potential to formulate a comprehensive redevelopment scheme for the Centre or parts of it, involving some or all of the Council’s adjacent landholding at the Southside Car Park.

A variety of initial options in terms of land involved and the mix of potential uses and delivery structures had been considered. These offered scope to revitalise and enhance this part of Street, however financial viability was a key challenge. The report outlined for information some of the options considered to date and the potential opportunities and issues emerging from the preliminary due diligence and assessment work being undertaken by and on behalf of the Council. The report sought a Member steer in respect of the project and authority to continue to explore and develop the proposals in liaison with other interested parties and with the input of consultancy advice and support as appropriate. This was with a view to undertake further interim due diligence and seek to develop a viable business plan for the subsequent consideration of Members.

Resolved:

1. That the content of the update report and appendices be noted.

2. That continued investigation of the scope to progress a redevelopment scheme, involving some or all of the Crispin Centre and the Council owned car park at Southside Street be supported, including negotiation with interested parties and utilising specialist advisors as appropriate.

3. In association with 2 above, provide delegated

7 30

authority to the Deputy Chief Executive in consultation with the Leader of the Council and Portfolio Holder for Enterprise and Finance, to make a financial offer up to a limit specified in the report and negotiate associated Heads of Terms to acquire the long lease of the former Tesco unit and associated car park as a strategic acquisition for hold in advance of any longer term development scheme.

4. That it be noted that in view of the approval of 3 above and subject to the bid being successful in principle, further due diligence will be required to inform a business case for Member consideration, with authority to progress to completion of acquisition referred back to the Phoenix Sponsorship Board.

14 Commercial Road, Shepton Mallet

The Board was informed that the Council was currently progressing early commercial discussions on an opportunity for the regeneration of the Commercial Road car park area. This objective was coupled with consideration as to whether there was scope to maximise income generation through an alternative use of the Council’s assets.

Following approval by Phoenix Board in December 2018, to develop a robust business case on the feasibility of bringing forward development proposals for a hotel and restaurant on the site, a consultant had been engaged to provide initial development consultancy advice including negotiation of heads of terms, agreement of transaction structure and development appraisals.

The Council had also been in discussions with relevant agencies to enable any future development to proceed.

The various options explored were reported to the board, one being not to proceed.

The alternative option was not to proceed and retain the status quo.

RESOLVED:

8 31

1. That authority be delegated to the Deputy Chief Executive in consultation with the Portfolio Holder for Enterprise and Finance and the Leader, to negotiate and take all other necessary actions to continue to progress the development of a robust business case on the feasibility of bringing forward the development proposals for Commercial Road car park to be subsequently presented to Phoenix Board for a decision, including appointment of external support.

2. That the proposed commercial and legal mechanism to inform early discussions with the commercial operator in bringing forward the proposed development on this site be noted and authority delegated to the Deputy Chief Executive, in consultation with the Portfolio Holder for Enterprise and Finance and the Leader, to refine the governance framework should the need arise, in accordance with the professional legal advice and support from Ashfords.

3. That the key factors influencing the delivery of the proposed scheme be noted.

4. That authority be delegated to the Deputy Chief Executive in consultation with the Portfolio Holder for Enterprise and Finance and the Leader to release funding up to the maximum specified in the report, to undertake measures to demolish 19 Commercial Road and make good for car parking for an interim use, following investigation of the site’s potential for emergency housing use and provision of evidence of the cost and viability of this short term use.

15 Potential Purchase of the Old Deanery, Wells

The property was a Unique Grade 1 listed building overlooking the Cathedral Green in the centre of Wells. Offering over 18,000 square feet, it was currently utilised as offices and an administration centre.

This potential acquisition did not meet the criteria set out in the Council’s Asset Investment Strategy as it would be purchased with vacant possession

9 32

and therefore without an income-generating lease in place. There appeared to be an opportunity though for the property to be used for the provision of serviced co-working offices which would generate a return for the Council.

Risks around potential loss of revenue resulting from an economic downturn were discussed.

Members remarked that partnership working was important to the economic success of this development. Members remarked that work units would make sense and open the building up. There was a need to consider commercial factors, but economic development and regeneration should also be considered.

RESOLVED

1. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader, and the Portfolio Holders for Enterprise & Finance, and Economic Development, to develop a Business Case for the acquisition of the property.

2. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader, and the Portfolio Holders for Enterprise & Finance, and Economic Development, to undertake market testing to determine potential demand for the property, and the income and operating model that would be appropriate.

3. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader, and the Portfolio Holders for Enterprise & Finance, and Economic Development, to commission such studies and surveys as were necessary to understand the risks and opportunities that the acquisition of the property may present.

4. That it be noted that the outcomes of the work mentioned in recommendations 1 to 3 above will be reported back to the Phoenix Sponsorship Board in due course, with a final recommendation as to whether to submit a bid for the purchase of the property.

10 33

16 Potential Acquisition / Leasing of SCC Land Sara Skirton

The Council has an objective to secure gypsy and traveller accommodation in the district.

The Glastonbury Living Spaces project seeks to address the wider issues and challenges of delivering an appropriate range of living spaces in the town in a holistic manner. The Panel aims to resolve the living space issues that are particular to Glastonbury by developing and delivering solutions that ensure that all sections of the local community can live harmoniously and feel welcome. It will work to develop a strategic view of the potential of public and private sector land and assets in the area, engaging with the County Council and others, with the objectives of supporting economic development, protecting the environment and securing the provision of much needed accommodation for a range of needs including gypsies and travellers and those living in vans.

A key partner and stakeholder in this project is Somerset County Council who share this Council’s strategic objectives of securing more Gypsy and Traveller accommodation in the district. The report outlined the potential of three pieces of land that may have potential to become gypsy and traveller sites.

The Chair noted the significant amount of work behind this paper. She noted that there were significant housing issues in Glastonbury that had to be addressed. This had been raised as a critical issue in the Local Plan Part 2 inspector’s meeting. She noted that there had been criticism of the lack of activity, and there was a need to demonstrate that a solution was being progressed.

RESOLVED

1. That authority be delegated to the Deputy Chief Executive, in consultation with the s.151 Officer and Leader, to finalise negotiations to enter into long leases or freehold acquisitions as appropriate for Somerset County Council owned land at

11 34

• Blatchbridge, Frome, • Agricultural land at Glastonbury, and • Land at Glastonbury bypass

For the purpose of creating permanent, transit and temporary Gypsy and Traveller accommodation.

2. That authority be delegated to the Deputy Chief Executive to agree Heads of Terms, and to instruct consultants to undertake the required level of due diligence and legal analysis.

3. That it be note that the outcomes of due diligence and legal analysis will be reported to the Phoenix Sponsorship Board in due course with a final recommendation as to whether to proceed with the acquisitions or leases, as appropriate.

4. That an initial budget for the amount specified in the report be set aside to o cover:

• Due Diligence, including legal and commercial advice as required • Planning consultancy • Engineering / flood remediation • Architects to design the schemes

5. That it be noted that further costs would be incurred should all sites be progressed to completion.

17 Loan to Somerset Waste Partnership for Waste Vehicles and Associated Infrastructure

Most of the Somerset Waste Partnership’s (SWP’s) Refuse Collection Vehicles were approaching the end of their economic working life and needed to be replaced to avoid escalating maintenance costs and the impact of increasing breakdowns whilst on customer service.

It was reported that it was not unusual for Councils to take this approach to fund the vehicle fleet as it was also beneficial for the authorities to own the vehicles should any contractual issues arise with the delivery partner. It was reported that there 12 35

could also be wider benefits to the community through the transformation and modernisation of the service. Previous “In Principle” approval was in place and this report sought to confirm that approval.

RESOLVED

That the report be noted and submitted to the September 2019 meeting of Cabinet for consideration.

18 Commercial Partnerships – idverde Contract

It was reported that the contract was due to expire on 30/11/2021, with the potential to extend for a limited period from 30/11/2020.

A series of options were presented to the Board for consideration. As a result of the impending timeline, it was considered appropriate to review the options available.

It was felt the matter should be considered by Cabinet and that there should be clear context around the Council’s objectives, and discussion should be as broad as possible.

RESOLVED:

That the report be referred to the September 2019 meeting of Cabinet with a recommendation that a Working Group be established to consider this matter further.

19 CCTV Service Overview

Following the brief outline of the service being provided to the portfolio holder and Phoenix Board in early June, it was considered appropriate to provide greater clarity of the service being provided, its operational model, and the wider impacts and interdependencies associated with the service.

RESOLVED:

That the report be submitted to the September 2019 meeting of Cabinet.

13 36

20 Terms of Reference for the Development of the Car Parking Strategy

The Car Park Strategy for MDC was drafted and presented to Cabinet in March 2018. At this time, wider consideration to other elements of transport, the larger transformation agenda taking place within the District and the consultation with third parties and the public had not been considered, as such, the strategy development was unsuccessful.

Given the requirements for the district and the need for internal clarity on elements such as MDC assets and future developments, it was considered appropriate to revisit the strategy, developing Terms of Reference to add the project.

It was intended that the governance structure detailed below would support the wider strategy development, whilst also ensuring that all elements of the community were represented and that MDC looked cohesively at the wider issues facing the district and outside influences which would likely impact the function during the term of the strategy.

RESOLVED:

That the report would be submitted to the September 2019 meeting of Cabinet.

21 Wells Rugby Football Club – Update Keith Pennyfather WRFC was currently located at a site off Charter Way in Wells, which extended to approximately four acres and included two pitches and a clubhouse. WRFC also owned a site in Haybridge, currently providing temporary additional practice pitches, which it acquired with a view to relocating from Charter Way; expanding and consolidating their provision; and updating its facilities to meet current Rugby Football Union guidelines. WRFC also had an agreement in principle with Wells Tennis Club that it would be provided with new facilities at the Haybridge site, to replace its facilities at the Wells Sports Club ground in Rowden’s Road.

14 37

In order to fund the relocation project, WRFC proposed to dispose of a site for housing development. The Chair noted that the Council had been aware of this site for some time, and remarked that it was important that the Council should be even-handed in its approach. She noted that the Council had a duty of care to ensure that best value was achieved from the use of public funds, and remarked that the current offer did not meet this requirement. The Chair felt that the Council must fully understand the offer, including any wider value that would be derived.

RESOLVED:

1. That progress with the project be noted.

2. That authority be delegated authority to the Deputy Chief Executive, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance to develop a detailed benefit statement for submission to the Phoenix Sponsorship Board. 22 Civic Site Review 2019 Project

Officers had been tasked to review the Civic Site to refresh and consider additional options for the site, which linked to current and future corporate plans and projects. The key driver for this review was to help close the budget gap and to consider what additional Capital and Revenue income streams could be achieved by using the site more effectively.

In response to questions from Members, the Group Manager, Neighbourhood Services explained that Group Managers were addressing the issues around remote working and available office space at the Civic Site.

RESOLVED

That the Phoenix Sponsorship Board:

1. That the report, along with the interdependencies with current and proposed needs for the future, be noted. 2. That it be noted that the updates and the business case will be presented to the Phoenix Sponsorship Board in due course.

15 38

23 Exchange – Stratton House, Bristol

The Senior Property Officer explained that no papers had been circulated for this item because the Council was not yet in a position to exchange.

In response to questions from the Section 151 Officer, the Senior Property Officer explained that if the vendor changed tack, there was a possibility that costs incurred by the Council so far would not be recoverable.

The meeting closed at approximately 12.45pm

16 39

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Wednesday 11 September 2019 in the Council Chamber, Shepton Mallet at 10:30 am.

PRESENT: Councillors Shane Collins, Peter Goater and Ros Wyke

OFFICERS PRESENT: Samphire Bartholomew, Committee Officer Paul Deal, Section 151 Officer Jo Mickens, Property Consultant Donna Nolan, Deputy Chief Executive Keith Pennyfather, Property Team Leader Adam Savery, Senior Property Officer Sara Skirton, Group Manager, Corporate Services

ALSO PRESENT: Councillor Tom Killen

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. She went on to explain the evacuation procedures in the event of an emergency.

2 Apologies for Absence

Apologies for absence were received from Councillors Barry O’Leary and Janine Nash.

It was noted that Councillor Janine Nash had submitted comments in writing to the Leader and the Deputy Chief Executive.

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

RESOLVED: 1 40

That the press and public be excluded from the meeting during consideration of items 6 to 13 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the previous meeting Samphire Bartholomew RESOLVED:

That subject to the following amendment the minutes of the meeting held 14 August be approved.

• That paragraph 2 on page 9 of the minutes be amended to read: ‘The Property Team Leader noted that, as a general rule, affordable housing land was worth around 25% of private housing land’.

7 Potential Acquisition of a property in Bristol Adam Savery

The Portfolio Holder for Economic Development presented a report that detailed the acquisition of a long term leasehold property. It was reported that this property acquisition had been first considered by the Phoenix Sponsorship Board in February 2019. At the time it was recognised as a complex project as it was a leasehold purchase rather than a freehold.

Members were asked to note the proposal, whilst balanced in terms of the original cash flow implications, created a yield return below that of the original banding recommended to and approved by the Phoenix Sponsorship Board. As such a new decision to proceed was required.

During the discussion that followed, the Senior Property Officer and Section 151 Officer commented that although the yield figure was lower than originally set, MDC would not be worse off in cash terms but the change in the yield figure would need to be noted.

2 41

Members noted there would be a lower yield and a delay in the acquisition but were keen to proceed to reach the earliest resolution.

RESOLVED:

That the revised Heads of Terms be approved and officers instructed to continue to pursue the acquisition of the property subject to the Council’s acceptance of the Heads of Terms and correspondence for the new head lease, receipt of confirmation of freeholder consent.

8 Commercial Property Potential Acquisition – Adam Savery Frome

The Portfolio Holder for Economic Development presented a report which considered an investment opportunity.

It was reported that the return on investment from this project would support the Council to deliver its strategic priorities and the delivery of front-line services.

During the discussion that followed Members acknowledged the area in question was becoming more popular but there were concerns that the possible void time might be too long. Alternative options for the site were also raised.

Members were concerned about the vast outlay costs.

Officers acknowledged the concerns but advised there were broader considerations beyond the investment opportunity.

RESOLVED:

Not to make an offer to proceed further with the investment opportunity.

9 Outline Business Cases – Glastonbury and Jo Mickens Frome

The Portfolio Holder for Enterprise and Finance presented reports that detailed proposals, as part of Mendip District Council’s Housing Development Sites project. This project had identified a number of Mendip owned sites as potentially suitable for 3 42

housing development. These schemes would help to address the under-supply of homes in the district and create a commercial opportunity for the Council.

This innovative scheme proposed the development of low cost, affordable move-on homes to meet an identified, specific, housing need that was unlikely to be met by the private sector. The development would create approximately ten 1 & 2 bed homes, ZedPods, which were desperately required in the areas

It was reported that Mendip had successfully applied for two Ministry of Housing Communities and Local Government’s Land Release Fund grants (LRF). The terms of the grants required sites to have development agreements in place by March 2020.

The ZedPods that were being proposed had modular construction methods with zero carbon delivery and operation making them a good sustainable solution for MDC. They were innovative but compared to a traditional housing development, the cost could be double.

Members expressed concern about the cost of the ZedPods. The Property Consultant replied that the cost could be reduced by changing the structural material to achieve a 10% saving, and that other value engineering options could be considered.

The zero carbon aspect was welcomed by Members, with the possibility of the project becoming a flagship development for MDC.

The Board was advised that whilst the projects had not been fully explored it was felt the innovative nature of the proposal was good for MDC, given social housing issues faced by the Council. It was accepted that further discussions would be necessary.

RESOLVED:

4 43

1. That the contents of the two reports and their appendices including the Legal and Financial advice, be noted.

2. That parking be retained.

3. That approval be given to continue work on designing a ZedPod solution to build over the existing car parks so as to develop a full business case, on both the Glastonbury and Frome proposals.

4. That authority be delegated to the Deputy Chief Executive, the Section 151 Officer, and the Group Manager for Corporate Services to take all other steps (including the commissioning of consultancy support) required to protect the Council’s commercial, legal and financial position in relation to the bids and any disposal for the development.

10 Acquisition / Leasing of Somerset County Sara Skirton Council Land / Ian Munday

The Group Manager for Corporate Services presented a report which stated that local authorities had certain obligations in regard to securing gypsy and traveller accommodation within their districts.

It was reported that a key partner and stakeholder in the project was Somerset County Council who shared Mendip Council’s strategic objectives of securing more gypsy and traveller accommodation in the district. The report provided an update on due diligence that had been undertaken thus far on potential sites and presented the draft Heads of Terms in relation to three pieces of land that may have potential to become gypsy and traveller sites.

Whilst the Council’s initial preferred approach was to acquire the freehold, it was now recognised that to pursue a long lease arrangement for one or more of the sites may enable solutions to be brought forward sooner.

It was noted that Councillors Ros Wyke and Peter Goater were members of the Glastonbury Living Spaces project, but had reserved their position on the matter for debate at Phoenix Board.

5 44

During the discussion that followed, the Board were made aware that Somerset County Council had seen a 35% increase in vans parked around the Glastonbury area.

The Group Manager for Corporate Services confirmed to Members that Blatchbridge in Frome would be a transit site; ‘Plot 2’ Land at Glastonbury bypass would be a temporary site of up to 28 days in any one year; and the agricultural land at Glastonbury would have 10 permanent pitches, all subject to planning permission which, as Members noted would likely be contentious.

RESOLVED:

1. In the light of preliminary site investigations and the constraints highlighted, not to progress with the acquisition of the site identified as ‘Plot 1’.

2. Delegate authority to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to finalise negotiations to enter into long leases or licence / management agreements with Somerset County Council in respect of land owned by them at the three sites listed in the report, for the purpose of creating permanent, transit and temporary gypsy and traveller accommodation.

3. That Nash Partnership be appointed as the sole source appointment to progress the individual sites for submission of the required planning applications.

11 Potential Acquisition of a property in Wells Adam Savery

The Phoenix Sponsorship Board had originally considered the property at its meeting on 14th August 2019.

In the discussion that followed the Senior Property Officer commented that the layout of the building was not conducive to offering suitable office space, and with no other potential commercial uses he recommended not to proceed with the acquisition.

RESOLVED:

6 45

1. That the findings of the initial due diligence and the advice be noted and that the property be not acquired.

2. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader, and the Portfolio Holders for Enterprise & Finance, and Economic Development, to work alongside Forward Space to explore other sites and opportunities that could deliver serviced office accommodation for the Wells area that would provide both economic benefits to the local area and a financial return to the Council.

12 AOB

Homes England Grant Update

The Senior Property Officer reported that there had been no follow up report regarding the Homes England grant as yet.

13 Urgent Business

Potential Investment Opportunity - Bristol

A new investment opportunity was presented to the Board. It was considered an interesting investment opportunity with strong aspects in that it was a freehold property in a fantastic location made up of offices and leisure, with 80% office space.

It was reported that quick decision would be required due to the desirability of the site. During the discussion that followed, the Property Team Leader expressed an interest for more detail about the investment proposition subject to due diligence.

Further information was sought. Members noted that the matter would likely be called to bid within a swift timeframe, which would necessitate a Phoenix Board meeting.

Saxonvale Update

7 46

The Deputy Chief Executive updated the Board that the planning application was considered by the South West Design Review Panel in early August. The application was well received and in planning terms the recommendation would carry significant weight.

It was agreed that the members of the Saxonvale Members’ would be briefed at their next meeting.

The meeting closed at approximately 1:45 pm.

8 47

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Monday 23 September in the Council Chamber, Shepton Mallet at 5:30 pm.

PRESENT: Councillors Shane Collins, Peter Goater, Janine Nash, Barry O’Leary and Ros Wyke

OFFICERS PRESENT: Samphire Bartholomew Committee Officer Paul Deal Section 151 Officer Donna Nolan Deputy Chief Executive Adam Savery Senior Property Officer Sara Skirton Group Manager, Corporate Services Jane Sharp Shape Mendip Project and Improvement Officer

ALSO PRESENT: Councillor Philip Ham

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. She went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

None

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

RESOLVED:

That the press and public be excluded from the meeting during items 6 to 9 on the grounds that exempt information (as defined in Schedule 12A 1 48

Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting Samphire Bartholomew RESOLVED:

The minutes of the Phoenix Sponsorship Board meeting on 11 September 2019 be confirmed as an accurate record of proceedings.

7 Potential Investment Purchase of two units in Adam Savery Bristol

The Portfolio Holder for Economic Development and the Portfolio Holder for Enterprise and Finance presented a report that detailed the potential to acquire property investments to create new and secure income streams through the acquisition of tenanted buildings.

The return on investment from this project would support the Council deliver its strategic priorities and the delivery of front line services.

During the discussion that followed, the Deputy Chief Executive remarked that the investment opportunity had been urgently brought to the last Phoenix Sponsorship Board meeting.

The Senior Property Officer had visited the site with the Property Team Leader and found the premises to be very attractive; he confirmed that the fit out of the building was of a high quality and felt encouraged to proceed.

Members sought clarification on the rent rates and service charge guarantee, which were clarified at the meeting.

RESOLVED

1. That on the basis of the advice received to make an offer for the leasehold within the range proposed in the advice.

2 49

2. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader and Section 151 Officer, to submit a further reasonable bid outside the initial range proposed in the expert advice, if necessary.

3. That the Phoenix Board be kept appraised of the bidding process.

4. That authority be delegated authority to the Deputy Chief Executive to agree Heads of Terms, and undertake the required level of due diligence and legal analysis.

5. That it be noted that the outcomes of due diligence and legal analysis will be reported to the Phoenix Sponsorship Board in due course, with a final recommendation as to whether to proceed with the acquisition.

8 Saxonvale – Homes England Grant Funding Jane Sharp

The Portfolio Holder for Economic Development and the Portfolio Holder for Enterprise and Finance presented a report which stated that in late 2018, MDC approached Homes England about potential funding opportunities in the Mendip district and it was suggested the Council apply for a Local Authority Accelerated Construction grant for Saxonvale. An application was submitted in January 2019.

For clarity, this was a grant for local authorities and covered the cost of enabling works to make the site ‘clean’ to support the delivery of homes and help to maximise the land value back to local authorities.

An informal grant offer was presented to the Phoenix Sponsorship Board in April 2019 and it was agreed ‘in principle’ to accept the grant offer, subject to a viable way forward being found for the potential financial risk associated with Modern Methods of Construction.

During the discussion that followed, the Deputy Chief Executive updated the Board that Homes England wanted to support Saxonvale but there were key risks emerging.

RESOLVED:

3 50

1a) That on the basis of the report, including advice previously provided to Phoenix Board in April 2019 to accept the offer from Homes England of £3.935M Local Authority Accelerated Construction grant based on delivering the obligations of Affordable Housing, committed to deliver at PACE and using Modern Methods of Construction.

1b) That authority be delegated to the Deputy Chief Executive, in consultation with the Leader, to negotiate the Local Authority Accelerated Construction Grant Funding agreement with Homes England on the draft terms.

1c) That the procurement risk be noted and authority be delegated to the Deputy Chief Executive, in consultation with the Leader, to negotiate and enter into a Supplemental Agreement (or alternative form of legal agreement) to the Sales and Overage Agreement so as to adequately indemnify the Council in respect of the delivery of the conditions of the Homes England Funding Agreement, including delivering the obligations of Affordable Housing, committing to deliver at PACE, using Modern Methods of Construction and taking into account further legal advice.

2) That the updated advice on the risks be noted as specified in the report.

3) That authority be delegated to the Deputy Chief Executive, in consultation with the Portfolio Holders’ for Enterprise and Finance, and Economic Development, to:

a) Agree the approach to prioritising a programme of grant funded enabling works included in the report. b) Continue the engagement with the technical experts specified in the report, to develop specifications for procuring contractors who will deliver the grant funded enabling works. c) Deliver a Planning Strategy to ensure relevant permissions and consents were in place for delivering the enabling works.

4 51

d) Develop and deliver a Procurement Strategy based on a framework agreement to secure the specialist resources required for delivering the enabling works. e) In relation to the delivery of this new aspect of the programme and to oversee the enabling works, put in place programme management arrangements. f) In relation to key messages and stakeholder engagement use the communication plan as a key management tool. g) Take all other necessary actions, including obtaining permissions, consents and entering into legal and other agreements to give effect to the decisions of the Phoenix Sponsorship Board in relation to this matter.

4) That authority be delegated to the Section 151 Officer and the Shape Mendip Project and Improvement Officer to deal with all matters relating to the administration of the Homes England grant funding.

5) That decision making, oversight and monitoring of this new element of the Saxonvale programme be delegated to the Project Board.

6) That it be noted that, as outlined in the report to Phoenix Board in April 2019, Homes England grant funding had represented a significant change of direction for the Saxonvale programme which would require a reallocation of internal resources and for which SLT would keep under review.

9 Urgent Business Sara Skirton

The Lead Member for Glastonbury Living Spaces presented a report that detailed that Mendip District Council had an objective to secure gypsy and traveller accommodation in the district.

During the discussion that followed, the Deputy Chief Executive reported that new information had just come to light requiring consideration.

5 52

RESOLVED:

1) That authority be delegated to the Deputy Chief Executive, in consultation with the Leader and Section 151 Officer to seek to negotiate the removal of the restrictive covenant; or find an alternative solution in relation to the future use of the land.

2) That subject to 1 above and subject to completion of satisfactory due diligence (including legal and financial), to delegate authority to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to seek to negotiate, to a maximum in line with the valuation specified, the acquisition of the land specified in the report.

3) That Subject to 2) above not proving possible, authority be delegated to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to undertake due diligence, including review of the contract and legal pack, and determine whether the Council should proceed.

4) That subject to satisfactory resolution of delegation 3), authority be delegated to the Deputy Chief Executive, in consultation with the Section 151 Officer and Leader, to make the necessary arrangements to enable the Council to bid, to a maximum in line with the valuation specified, noting that that this may include appointing an agent to bid on behalf of the Council.

5) That the process for acquiring land by auction be noted.

6) That it be noted that in the circumstances the usual pre-exchange report to the Phoenix Sponsorship Board would not be feasible, and therefore all necessary decision making be delegated to the Deputy Chief Executive, in consultation with the Leader and the Section 151 Officer.

7) That the risks associated with an acquisition of this nature as specified in the report be noted and that the alternative approaches explored.

6 53

8) That subject to the successful acquisition, the site be included within the scope of work included in the Glastonbury Living Spaces project.

The meeting closed at 6:45 pm.

7 54

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Thursday 10 October 2019 in the Council Chamber, Shepton Mallet at 6.00 pm.

PRESENT: Councillors Peter Goater, Janine Nash (from 6.25 pm), Barry O’Leary and Ros Wyke

OFFICERS PRESENT: Paul Deal Section 151 Officer Donna Nolan Deputy Chief Executive Adam Savery Senior Property Officer Sara Skirton Group Manager, Corporate Services Ben Sugg Democratic Services Officer

ALSO PRESENT: Councillor Liz Leyshon

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. She went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

None

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

RESOLVED:

That the press and public be excluded from the meeting during items 6 to 8 on the grounds that exempt information (as defined in Schedule 12A

1 55

Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting Claire Dicken

RESOLVED:

That the minutes of the Phoenix Sponsorship Board meeting on 23 September 2019 be confirmed as an accurate record.

7 Potential Acquisition, Glastonbury Adam Savery

The Senior Property Officer had prepared a report which considered the potential purchase of a strategic site.

This potential acquisition did not meet the criteria set out in the Council’s Asset Investment Strategy as it would be purchased with vacant possession and therefore without an income-generating lease in place.

Due to the short timescales involved in the preparation of the report there had not been the opportunity to obtain sign off prior to publication.

In response to questions from Members, the Deputy Chief Executive explained that should the Council purchase the site, an intermediate use conducive to economic development would be sought, however it would be unlikely to present a significant income stream.

The Senior Property Officer explained that the item had been raised to avoid the Board missing an opportunity, should it determine that one was presented by the site.

Councillor Nash arrived at 6.25 pm.

Members noted that it would take some time before the Council would benefit from the investment.

RESOLVED:

2 56

1. That on the basis of the advice provided, to make an offer for the freehold at a level that would seriously be considered, taking into account the valuation, and potential third party interest.

2. That the bid level be set in accordance with the specialist advice received.

3. That authority be delegated to the Deputy Chief Executive, in consultation with the s.151 Officer and Leader, to submit and then, if appropriate, negotiate a bid in respect of the property in excess of the bid level, if deemed appropriate and necessary to secure the acquisition of the site.

4. That the Phoenix Sponsorship Board be kept appraised of the negotiation process.

5. That authority be delegated to the Deputy Chief Executive to agree Heads of Terms, and undertake the required level of due diligence and legal analysis.

6. That the outcomes of the due diligence and legal analysis be reported to the Phoenix Sponsorship Board in due course, with a final recommendation as to whether to proceed with the acquisition.

8 Urgent Business

None

The meeting closed at 6.45 pm.

3 57

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Wednesday 6 November 2019 in the Committee Room, Shepton Mallet at 2.30 pm.

PRESENT: Councillors Peter Goater, Janine Nash (by phone), Barry O’Leary (by phone until 2.40 pm) and Ros Wyke

OFFICERS PRESENT: Paul Deal Section 151 Officer Donna Nolan Deputy Chief Executive James North Democratic Services Officer Adam Savery Senior Property Officer Sara Skirton Group Manager, Corporate Services Ben Sugg Democratic Services Officer

ALSO PRESENT: Nick Allen Cushman & Wakefield (Item 07) Simon Bailey Ashfords (Item 07, by phone) Steve Puddicombe Cushman & Wakefield (Item 07, by phone)

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. She went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

None

3 Declarations of Interest

None

4 Public Participation

None

5 Exclusion of the Press and Public

RESOLVED:

That the press and public be excluded from the meeting during items 6 to 8 on the grounds that 1 58

exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting Ben Sugg

RESOLVED:

That the minutes of the meeting held on 10 October 2019 be confirmed as an accurate record.

7 Investment Opportunity - Bristol Adam Savery

The Property Team had prepared a report concerning the property investment purchase of a long leasehold interest in a site in Bristol. It contained an update on due diligence, and approval to exchange contracts and complete the acquisition. It also noted that at its meeting on 23 September 2019 the Phoenix Sponsorship Board had approved a bid being made for this property, and – in accordance with a delegation given to the Leader, the Deputy Chief Executive, and the s.151 Officer at that meeting – a purchase price had been agreed.

The report stated that this project would support the Council in delivering a sustainable Medium Term Resources Strategy by providing a new revenue stream to the Council to support front line service delivery to our customers and communities.

The report also stated that the project formed a key part of our enterprise agenda and linked to the effective management of our asset base, the exploitation of commercial opportunities where feasible, and a sustainable Medium Term Resources Strategy.

The legal position had been fully analysed, as could be seen in the body of the report.

Councillor Barry O’Leary left the meeting at 2.40 pm.

During the discussion the Chair requested that the insurance situation be checked, as a priority action. 2 59

Technical details were then discussed, including lease arrangements and use.

The Chair proposed that the Phoenix Sponsorship Board agree to go to exchange but not to complete until the leases were finished. Councillors Goater and Nash agreed this proposal.

RESOLVED:

1. That the detailed information contained in the body of the report and its appendices, be noted.

2. That it be noted that full copies of all due diligence reports had been made available for review on a private members’ area of SharePoint.

3. That no further due diligence investigations, or supplemental advice, were required to inform this matter, subject to the resolution of the currently identified issues.

4. That authority be delegated to the Deputy Chief Executive, in consultation with the Leader of the Council and The S151 officer to agree and enter into final transactional terms in accordance with the Heads of Terms to approve the exchange of contracts, and subsequent completion of the acquisition, at a price specified in the report.

5. That the managing agents specified in the report be appointed to support the Council with the management of the property.

6. That in the interests of transparency and good governance the reports attached as appendices to this report be retained with the minutes.

8 Saxonvale Verbal Update Donna Nolan

The Deputy Chief Executive gave a verbal update covering progress since the last meeting.

9 Urgent Business

None 3 60

The meeting closed at 4.25 pm.

4 61

MENDIP DISTRICT COUNCIL

Minutes of the meeting of the Phoenix Sponsorship Board held on Monday 9 December 2019 in the Redlake/Whitelake Room, Mendip District Council, Shepton Mallet at 11.30 am.

PRESENT:

Councillors Shane Collins, Peter Goater, Janine Nash (by telephone), Barry O’Leary (by telephone and left during consideration of item 12), and Ros Wyke (Chair)

OFFICERS PRESENT:

Stuart Brown Chief Executive (for items 1-8) Paul Deal Section 151 Officer Donna Nolan Deputy Chief Executive Claire Dicken Democratic Services Officer Chris Loughlin Project and Improvement Officer (for item 7) Jo Mickens Property Team (for items 12 and 13) Keith Pennyfather Property Team Leader Adam Savery Senior Property Officer (for item 14) Jane Sharp Shape Mendip Project and Improvement Officer (for item 14)

Agenda To be Item Subject actioned by Number 1 Chair’s Announcements

The Chair asked that mobile phones be switched to silent. She went on to explain the evacuation procedures in the event of an emergency.

2 Apologies For Absence

None

3 Declarations of Interest

Councillor Barry O’Leary declared a personal, but non-prejudicial interest in item 10 because the site was in his Ward.

Councillor Peter Goater declared a personal but non-prejudicial interest in item 13 because Cemetery Lane, Street was in his Ward.

1 62

4 Public Participation

None

5 Exclusion of the Press and Public

RESOLVED:

That the press and public from the meeting during items 6 to 15 on the grounds that exempt information (as defined in Schedule 12A Local Government Act 1972) of the following description is likely to be disclosed:

Category 3 - Information relating to the financial or business affairs of any particular person (including those of the Council).

6 Minutes of the Previous Meeting Claire Dicken

RESOLVED:

That the minutes of the meeting held on 6 November 2019 be confirmed as an accurate record, agreed subject to the following changes:

That on page 7, paragraph 1, “finished” be replaced with “finalised”.

That on page 10, paragraph 3, “template and maintenance” be replaced with “completion statement and update on maintenance.”

7 Civic Site Chris Loughlin The Project Lead had prepared a report in conjunction with the Property Team, Neighbourhood Services Team and other Project Team members which stated that Officers were undertaking a review of the Civic Site to refresh and consider additional options for the site, which linked to current and future corporate plans and projects. The key driver for this review was to help close the budget gap and to consider what additional Capital and Revenue income streams could be achieved by using the site more effectively.

2 63

The purpose of this report was to outline the options for a first stage review of how we could utilise the Civic Site better and determine the best way forward.

This report followed the report that the Phoenix Sponsorship Board considered at their meeting on 14 August 2019.

The Deputy Chief Executive summarised the detail of the report.

The Chair requested that the Board have a further report so they could review the cost to Mendip of the desk space.

RESOLVED:

1. Car Park - Development Opportunity a. That subject to the conclusion of successful negotiations and legal agreement in respect of Commercial Road Car Park, Shepton Mallet the proposal to redevelop part of the Civic Site car park is held in abeyance. b. That delegated authority be granted to the Corporate Financial Advisor to liaise with the interested developers to clarify that whilst negotiations regarding their interest will not progress at this time, the matter remains under review. c. That should a commercial position with in respect of Commercial Road Car Park, Shepton Mallet not be satisfactorily reached that the opportunity to redevelop part of the Civic Site car park be reconsidered.

2. Stockhill (ground floor) a. In accordance with the terms of the lease, authority is granted to the Police to enable them to display a “to let” board pending a new tenant for the ground floor of Stockhill being secured. That delegated authority be given to the Group Manager for Corporate Services to agree the location and wording of the sign in accordance with the discussion above.

3 64

b. That delegated authority be granted to the Group Manager for Corporate Services to proactively engage with public sector and third sector partners to ascertain whether there are mutually beneficial opportunities relating to the relocation of the Police.

3. Removal of the Elliott Hut / Relocation of Capita staff - a. That delegated authority be granted to the Group Manager for Neighbourhood Services to make the necessary arrangements to decommission the Elliott Building located on the Civic Site car park, and take all necessary actions to relocate Capita staff utilising this building to the ground floor of the Sharpham building. b. That the financial implications associated with this matter be noted, including the reduction of income but this will in turn alleviate car parking pressures on the Civic Site car park. c. That a further report be brought to the Phoenix Sponsorship Board in order to review the occupancy charges.

4. Somerset Library Services - a. That the update regarding the SCC library location decision be noted and that if SCC determine that the most appropriate location for the Shepton Mallet library is at the Civic Site a full business case be presented to the Board in due course.

8 Shepton Mallet Georgina Dickens The Property Team had prepared a report the purpose of which was to provide an update on the possible future option for the use and possible regeneration of a site in Shepton Mallet.

The proposed structure for the potential deal and commercial rationale had been agreed, in principle, by Phoenix Board (in December 2018 and August 2019).

4 65

During the discussion that followed the Board said the site as an important gateway to the town and that the build quality was important.

The report stated that other commercial options had been reviewed however, the impact of these options on the wider town centre and impact on the local economy meant these options were not recommended.

The Board were minded to delegate authority to Officers to engage in negotiations and report back to them. The Chair requested an updated risk register be produced when the project was returned to the Board.

RESOLVED:

1a. That authority be delegated authority to the Corporate Financial Advisor in consultation with the Portfolio Holder for Enterprise and Finance and the Leader of the Council to negotiate the final legal, financial and commercial structure of the transaction.

1b. That authority be delegated to the Corporate Financial Advisor in consultation with the Portfolio Holder for Enterprise and Finance and the Leader of the Council to agree Heads of Terms and undertake the required level of due diligence and legal analysis to support a commercial agreement of this nature.

1c. That it be noted that the outcomes of due diligence and legal analysis will be reported to the Phoenix Sponsorship Board in due course, with a final recommendation whether to proceed with the transaction.

1. That the revised position of the other party listed in report be noted..

2. That the outcome of soft market testing and other options explored in relation to commercial opportunities associated with the site, be noted.

3. That the interrelationship between this matter and the potential commercial opportunity relating to the other site Civic Shepton Mallet be noted and agree that

5 66

the opportunity relating to this site should, at this time, take precedence.

4. That authority be delegated authority to the Corporate Financial Advisor and the Group Manager for Corporate Services to take all steps (including the continued commissioning of consultancy support) required to protect the Council’s commercial, legal and financial position in progressing the project.

5. That authority be delegated authority to the Corporate Financial Advisor and the Group Manager for Corporate Services to finalise the internal resourcing implications of this project, including the allocation of an appropriate budget.

6. That the draft Engagement and Communications Strategy, Project Governance and the Outline Project Tasks at Appendices A, B and D to this report, be approved.

7. That authority be delegated to the Corporate Financial Advisor in consultation with the Portfolio Holder for Enterprise and Finance and the Leader of the Council, to finalise the project governance framework and the engagement and communications strategy at Appendices A and B respectively, including decisions regarding the membership of the proposed Project Board and Stakeholder Groups.

8. That the Risk Register at Appendix C to this report, be noted.

9 Acquisition and Redevelopment Opportunity in Lucille Street Ainsworth

The Property Team had prepared a report which stated that it was proposed that the Council continue to consider taking a proactive role to facilitate the comprehensive redevelopment of sites

6 67

to benefit the centre of Street. In order to achieve this, it was proposed the Council pursue negotiations to acquire the freehold and the long leasehold of two sites.

This report provided a high level business case setting out issues and risks for consideration to inform decisions about the proposed acquisitions, but also in respect of the project proposal as a whole. The report also summarised the current status of negotiations with third party landowners.

The next steps included the agreement of proposed governance, engagement and communications frameworks to come into effect where the Council is successful in acquiring the retail premises and the project moves forward.

The Property Team Leader said the purpose of this report was to request of the Board that delegated authority be given to Officer to take consideration of the site forward.

The Chair suggested that given the update this report be deferred to the next meeting of the Board in order for the third party commercial position to become clear. Meanwhile, delegated authority should be given to Officers as recommended.

RESOLVED:

1. That the content of the report and appendices be noted, in particular the updated position from the specialist advisers.

2. That authority be delegated to the Corporate Financial Advisor in consultation with the Portfolio Holder for Enterprise and Finance and the Leader of the Council to negotiate the draft Heads of Terms with regard to the legal, financial and commercial structure of the transactions, subject to:

a) Heads of Terms in respect of the acquisitions included for completions to be conditional on their being concurrent.

7 68

b) An acquisition figure of no more than that the specialist advisers will support in a written appraisal.

3. That it be noted that the draft Heads of Terms and outcomes of due diligence and legal analysis will be reported to the Phoenix Sponsorship Board in due course, together with a recommendation as to whether or not proceed with the acquisition.

4. That authority be delegated to the Corporate Financial Advisor and the Group Manager for Corporate Services to take all steps to ensure that the required level of due diligence and legal analysis is undertaken to support the acquisition of the freehold of site one and the leasehold of site 2, (including the continued commissioning of consultancy support) and protect the Council’s commercial, legal and financial position in progressing the project.

5. That authority be delegated to the Corporate Financial Advisor to carry out soft market testing to identify potential delivery partners, with an emphasis on the potential delivery model outlined in this report.

6. That approval be given to the draft Engagement and Communications and Project Governance Strategies included at Appendix 5 and 6 respectively of this report.

7. That authority be delegated to the Corporate Financial Advisor in consultation with the Portfolio Holder for Enterprise and Finance and the Leader of the Council to finalise the Engagement and Communications and Project Governance Strategies at Appendix 5 and 6 respectively of this report, including decisions regarding membership of the proposed Project Board, Member and Stakeholder Groups.

8. That authority be delegated to the Corporate Financial Advisor and the Group Manager for Corporate Services to finalise the internal resourcing implications of this project, including the allocation of an appropriate budget.

9. That authority be delegated to the Corporate Finance Advisor and the Group Manager for

8 69

Corporate Services to take all necessary steps to give effect to the above delegations, including the allocation of budget to ensure the project and its impact is resourced as outlined in this report.

10. That the risk register at Appendix 4 be noted.

10 Shepton Mallet Keith Pennyfather The Property Team had prepared a report which set out the initial review of potential development options for the site in Shepton Mallet.

It appeared from the initial review that the site could be developed for housing and / or employment purposes. However, to assess whether such a project was either commercially deliverable, or was one appropriate for the Council to take a proactive role in delivering, a detailed Business Case would be essential. This report was presented to Members so that they could consider if they would like to investigate this matter further.

It was noted that there was an interdependency between this report and the report titled Housing Delivery Sites also on this agenda, where Members were requested to consider whether they were minded explore the acquisition of further housing development sites within the District; and also to consider soft market testing to explore delivery and management options.

RESOLVED:

Having considered the contents of this report, and its appendix, the Phoenix Sponsorship Board resolved that Officers should investigate this matter further, and it be noted that a housing-lead scheme was preferred.

11 Procurement to Appoint an Energy Investment Donna Nolan Consultant

The Enterprise Team had prepared a report which sought approval to appoint an Energy Investment Consultant to assist the Council in reviewing investment opportunities in line with the Council’s

9 70

Draft Energy Investment Strategy to help address the Council’s budget shortfall.

Members were asked to disregard Appendix A of the report, the Draft Energy Investment Strategy and Associated Phoenix Board paper because this had been left with the Scrutiny Board to comment and Cabinet to determine.

Members noted that the Draft Energy Investment Strategy which had been developed by Corporate Services was awaiting review by the Procured Energy Investment Consultant, as such it would be presented to Cabinet once it has been reviewed in full by the Council’s Energy Investment Consultant.

RESOLVED:

(a) That authority be delegated to the Section 151 Officer in consultation with the Leader of the Council and Portfolio Holder(s) for Finance and Enterprise, to enter into and run a procurement process to engage the services of an energy investment consultant to support and advise on options available to the Council regarding investing in the Renewable Energy Sector (asset based only) in order to generate income for the Council in line with the Council’s Energy Investment Strategy.

(b) That the outcomes of the procurement process and the recommendations of the Procurement Panel be reported to Phoenix Board in due course.

12 Glastonbury and Frome Jo Mickens

The Property Team had prepared a report which stated that this project was part of the Council’s Housing Development Sites programme, which had identified a number of Mendip owned sites as potentially suitable for housing development.

Phoenix Sponsorship Board previously considered an outline business case looking at the potential for Zedpods to help address the under-supply of social housing in the district,. The Board noted that Zedpods represented sustainable solutions using modern construction methods with potential to speed up delivery and inspire communities and

10 71

Registered Providers to consider innovative approaches to management and support.

The Board agreed that a full business case be developed for further consideration.

The purpose of this report was to appraise the Phoenix Sponsorship Board of the work undertaken to complete the full business case.

The Chair said she was really disappointed that the Zedpods project had proved too expensive. In response to questions she noted that there were currently no other providers of accommodation which could be built in the same way as intended. She was concerned about the level of homelessness.

Councillor Barry O’Leary left the meeting.

Members did not want to give up on this project and asked Officers to look at further alternatives.

RESOLVED:

1. That the contents of this report and its appendices including the Legal and Financial advice, be noted.

2. That due to the high cost of ZedPods, this particular solution is not progressed at this time and that the ZedPods project is closed.

3. Subject to agreement of recommendation 2 above, to incorporate both sites within the wider housing strategy papers for future reporting purposes.

4. That authority be delegated to the Corporate Financial Advisor, and the Group Manager for Corporate Services to take all other steps (including the commissioning of consultancy support) required to protect the Council’s commercial, legal and financial position.

11 72

13 Housing Sites and Delivery Approach Keith Pennyfather The Property Team had prepared a report which set out a commercially-driven (but with a focus on social outcomes) list of opportunities for housing delivery on council-owned sites, and the potential acquisition of further land for this purpose.

During the discussion that followed Members requested that Community Land Trusts be approached to engage with the projects. However, it was noted that sometimes Community Land Trust imposed restrictions which may not match Mendip’s approach.

The key sites were in:

• Easthill, Frome • Cemetery Lane, Street • Norbins Road, Glastonbury • North Parade, Frome • Broadway, Frome

Members were keen for the Council to concentrate on such key sites as a Phase 1 of a Housing Delivery project. After that, they hoped the Council might acquire secondary sites for development also.

The Property Manager pointed out the section of the report that discussed the types of social housing. Officers said it would be useful to have a steer from Members as to what type of social housing they wished to provide.

The Section 151 Officer said it would also be useful to know whether Members were looking to subsidise the social housing, though this information was likely to come out further into the process.

During the discussion that followed Members agreed the Council’s aim should be to support the provision of social-rented housing in order to meet the housing needs.

The Chair said that the project to provide social housing was a priority for this administration and that the project should be fed into the Council’s official list of key priorities.

12 73

Members noted that some Registered Providers may be suited to our sites.

Councillor Janine Nash queried whether such new builds could include measures that generated energy. If this were possible, the Council could be in a position to make money back from energy produced by the properties. Members agreed this idea should be given to the newly appointed Energy Consultant.

RESOLVED:

1. That authority be delegated to the Corporate Finance Advisor, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to progress soft market testing of preferred delivery models and disposals options for housing development on the following sites, including the instruction of consultants as required:- a. Easthill, Frome b. Cemetery Lane, Street c. Norbins Road, Glastonbury d. North Parade with the caveat that the car parking be retained

2. That the soft market testing process will be used to focus on Registered Providers delivering social rented housing, along with Community Land Trusts where appropriate.

3. That it be noted that the outcome of the soft market testing process will be reported back to Phoenix Board in Spring 2020, with recommendations as to the delivery model.

4. That authority be delegated to the Corporate Finance Advisor, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to invite expressions of interest and Business Cases from interested community groups for the Frome Broadway site; and to seek offers to purchase from minor garden encroachers who hold, or have been offered, a licence to occupy.

5. That authority be delegated authority to the Corporate Finance Advisor, in consultation with the Leader and the Portfolio Holder for

13 74

Enterprise and Finance, to submit planning applications for access improvements at:-

a. Easthill, Frome b. Cemetery Lane, Street c. North Parade, Frome

6. That authority be delegated authority to the Corporate Finance Advisor, in consultation with the Leader and the Portfolio Holder for Enterprise and Finance, to acquire additional land in the district for the targeted provision of further social housing.

14 Saxonvale Project - Update Paul Deal

The Property Team prepared a report which gave an update on progress on the principal aspects of the project and sought approval from Phoenix Sponsorship Board on a number of key matters.

The report concluded that whilst the project was progressing at pace, as a commercial urban regeneration project by its very nature the risks leading to successful delivery were complex.

Members requested that the Section 151 Officer give them sight of graphics to show the profit forecasts as soon as it was possible to do so.

RESOLVED:

1. That all previous delegations granted by the Board to the Deputy Chief Executive in respect of the Saxonvale project transfer immediately to the Corporate Financial Advisor.

2. That the option be retained, subject to further detailed analysis of the opportunity and due diligence, to fund the development of the scheme.

3. That the option be retained, subject to future detailed analysis of the opportunity, to invest in purchasing any of the rented commercial elements of the scheme.

14 75

4. Approves the legal advice relating to the Sales and Overage Agreement and agrees the approach to best mitigate the risk highlighted.

5. Approves the contingency plan at Appendix 4.

6. Approves the Deed of Variation to the Sales and Overage Agreement with the organisations listed in the report.

7. That authority be delegated to Officers to make alternative arrangements in the event that the current provider no longer wishes to provide support.

8. That the revised Masterplan be revised, noting the changes are in line with the delegation at the Phoenix Sponsorship Board on 1 March 2019:

Item 7, 1 (e): Subject to no further significant or adverse responses to the pre- planning application public consultation, delegates authority to the Deputy Chief Executive in consultation with the Leader and Deputy Leader to confirm formal approval of the above pre-condition {with the organisations listed}.

9. That the Viability Assessment at Appendix 6 be approved, noting that the final detailed Viability Appraisal will be presented to Phoenix Board prior to draw down of Phase 1 of the development.

10. That approval be given to the launch of a series of arts related projects to make best use of the hoarding at the Saxonvale site.

11. That approves be given to the first project namely, the installation of an exhibition of photographs to be installed by 13 December 2019, with a press launch on 14 December 2019.

12. That authority be delegated to the Saxonvale Project Board to oversee and approve subsequent Hoarding Arts Projects.

13. That approval be given to an additional budget as specified in the report in respect of enabling and associated costs for 2019/2020 onwards. 15 76

14. That an additional budget as specified in the report in respect of promotion cost associated with the planning application be approved, noting this extra cost will be recovered through the development cost.

15. That the previous delegation by the Phoenix Board to the Deputy Corporate Financial Advisor be affirmed, in consultation with the Deputy Leader and Portfolio Holder for Transformation, to acquire Environmental Insurance of a cost specified in the report, and that consultation will now take place with the Leader and Portfolio Holder for Enterprise and Finance.

16. That the risks highlighted be noted.

17. That the decision of the Saxonvale Project Board on 20 November 2019 to recommended Procurement Option 2 be noted.

18. That the positive commercial dialogue be noted with the company listed and reconfirms their previous delegations.

19. Note that the Mayday Saxonvale campaign is live, and that the Project Team will ensure that the Project Board is kept up to date of any developments and will bring to the Phoenix Board any issues that require escalation.

20. That the position in relation to contamination testing be noted.

21. That the update regarding the status of the planning application be noted, including the reasons for delay and the revised target date for determination by the Local Planning Authority.

22. That authority be delegated to Officers to pursue a Scape Framework to deliver a timely procurement process for Homes England grant funded works on the Saxonvale site.

16 77

15 Phoenix Sponsorship Board and Asset Sara Skirton Management Group – Cross Cutting

The Property Team had prepared a report the purpose of which was to review the terms of reference of Phoenix Board and to establish an Asset Management Group.

The report stated the new Asset Management Group’s remit would be principally to deliver maximum commercial returns from all the Council's property assets, balanced with promoting though it should also promote efficient use of assets and the community benefits that were deliverable from them.

The Asset Management Group would have authority to agree rents up to a value of £25,000 pa, or sale/ purchase prices up to a value of £100,000. Any potentially contentious matters below those limits may be referred to Cabinet for approval at Asset Management Group's request. All matters above those limits would be referred to Cabinet or Phoenix Board for approval, though the Asset Management Group may provide prior recommendations if appropriate.

During the discussion that followed Members agreed the following makeup for each of the groups:

1. The proposed membership of the Phoenix Board is:

• The Leader of the Council • The Deputy Leader • The Portfolio Holder for Enterprise and Finance • The Portfolio Holder for Economic Development • The Portfolio Holder for Housing • The Leader(s) of the Opposition shall also be invited to attend

2. The proposed membership of the Asset Management Group is:

• The Leader of the Council • The Deputy Leader • The Portfolio Holder Corporate Services and Performance Management 17 78

• The Portfolio Holder Enterprise and Finance • The Portfolio Holder for Housing • The Leader(s) of the Opposition shall also be invited to attend

3. The usual executive decision making position will apply to both.

4. In terms of frequency of meetings, it is proposed that Phoenix Board meetings continue to take place on an as required basis, whilst the Assets Management Group will be scheduled to take place monthly, with the option to cancel a meeting, with the agreement of the Chair, should there be no substantive business to consider.

RESOLVED

The Phoenix Sponsorship Board:

1. That the revised terms of reference for Phoenix Board as outlined in the report, be approved.

2. That an Asset Management Group be established, as outlined in this report.

3. That these matters form part of the amendments to the Constitution to be considered by Full Council in February 2020.

4. That the Group Manager for Corporate Support and the Corporate Financial Advisor be authorised to take any further action necessary to give effect to the decision of the Board in relation to this matter.

16 Urgent Business

None

The meeting closed at 3 pm.

18 79