Agenda and decisions

Salford City Council - Record of Decision

Title: CRSTS (City Region Sustainable Transport Settlement)Peel Green Active Travel Scheme

I, Councillor Kelly, Deputy City Mayor, in exercise of the powers contained within the City Council’s constitution do hereby;

1.     Note the progress to date on the CRSTS Peel Green Active Travel Scheme.

2.     Approve the City Council entering into a development costs letter with Transport for Greater Manchester (TfGM) for a grant of £645,516 to fund the development costs of the next stage of the project.

3.     Give delegated authority to the Executive Director Place in consultation with the City Solicitor and Section 151 officer to enter into the necessary development costs letter with TfGM/Greater Manchester Combined Authority (GMCA)

4.     Note the proposed approach to further development of the project including consultation with members and the public as the scheme is developed.

The Reasons: Progress has been made to date on the City Region Sustainable Transport Settlement (CRSTS) funded, Peel Green Active Scheme, and these approval to enter into a development costs letter with Transport for Greater Manchester (TfGM) will enable the next phase of the project’s development to commence and which will also act as a mechanism for fee and costs expended by Salford City Council to be recovered via the grant claim process.

Assessment of Risk is Medium 

The source of funding: City Region Sustainable Transport Settlement (CRSTS) Fund.

Legal Advice obtained:  Kathryn Saldana, Shared Legal Service.

Financial Advice obtained:  Hollie Faulkner, Finance Manager.

Procurement Implications: N/A at this stage

HR Implications/Advice: N/A

Climate Change Advice Obtained:

Opu Anwar, Group Leader Capital Programme

The scheme proposed for development seeks to enhance and encourage the use of sustainable transport modes with enhanced facilities for cyclists and pedestrians.  Overall, the project will have a positive impact on climate change.

The following documents have been used to assist the decision process:

Report submitted to the Property/Regen Briefing on 27 November 2023

Contact Officer: Opu Anwar, Group Leader Capital Programme        

E-mail: opu.anwar@salford.gov.uk

*           This decision was published on Monday 27 November 2023.

*           This decision will come in force at 4.00 pm on Monday 4 December 2023   unless it is called-in in accordance with the Decision Making Process Rules.

The following items are for the primary purpose of providing members of the public with all relevant information on the respective matters, other than those elements, which in accordance with the relevant sections of the Local Government Act 1972, remain confidential and require that any arising decision is taken in Part 2 of the agenda.

THAT, under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that, they involve the likely disclosure of exempt information as specified in the relevant paragraphs of Part 1 of Schedule 12(A) to the Act.

Salford City Council - Record of Decision

Title: Transfer Of Affordable Homes Developed By The Council At The Former

St. Luke’s Site, Kerrera Drive, Salford To DériveRp And Dérive Group

I, Councillor Kelly, Deputy City Mayor, in exercise of the powers contained within the City Council’s constitution do hereby;

1. Approve the disposal of 56 properties at the St. Luke’s site to Dérive RP by way of the grant of a long lease for a term of 1000 years, for social and affordable rent.
2. Approve the disposal of 12 properties at the St. Luke’s site to Dérive Group by way of the grant of a long lease for a term of 1000 years, for shared ownership sale.
3. Approve the lending of £6,479,691 to Dérive RP to fund the acquisition and associated costs of 56 units.
4. Approve the lending of £2,004,259 to Dérive Group to fund the acquisition and associated costs of 12 units, subject to Dérive Group securing Investment Partner status and Homes England grant funding.
5. Note the current position on the Memorandum of Understanding between the Council and Inspiring Housing Community Land Trust (IHCLT) and the potential on-transfer of up to 24 properties at the St. Luke’s site from Dérive RP to IHCLT, subject to further approval of terms and funding arrangements between the parties.  
6. Delegate authority to the Executive Director Place in consultation with the S151 officer to: negotiate, agree, and finalise the detailed terms of the transaction.
7. Authorise the Shared Legal Service to prepare all necessary documentation and to take all steps which are required to give effect to the above recommendations.

The Reasons:                              

New affordable housing delivery.

Assessment of Risk is Medium 

The source of funding: Housing Capital Programme, with loan to be repaid by Derive RP over 40 year term.

Legal Advice obtained:  Kate Bouchier and Kathryn Saldana, Shared Legal Service.

The Council has the power to provide funding to Dérive RP and Group under a range of powers including s.1 Localism Act 2011 and s.24 Local Government Act and s.25 Local Government Act 1988 (1988 Act), the latter providing the power to provide financial assistance for privately let housing. S.25 1988 Act requires that s.24 1988 Act (or any similar power) is not exercised without the consent of Secretary of State. Consent C of the 2010 General Consents provides a broad consent for financial assistance which would cover the proposed Council loan and grant funding agreement with Dérive RP and Group.

The tax treatment of the proposed Council disposals to Derive RP and Derive Group respectively needs to be considered and specialist tax advice is required. The transactions will potentially create tax liabilities within the Derive company group and any available reliefs need to be explored. If none are available, the implications for the financing of the disposals will need to be reviewed.

In addition, specialist legal advice is being sought with respect to the structuring of the transaction to assist with the shared ownership sales.

The disposals should also be structured in a  ...  view the full decision text for item 6a