North Yorkshire Council
Executive
17 June 2025
Housing Delivery
Report of the Corporate Director Community Development
This report contains two confidential appendices at Appendix B and F. These appendices contain information of the type defined in paragraph 3 of Part 1 of Schedule 12A Local Government Act 1972 (as amended) as it contains information relating to the financial and business affairs of the Council and it is considered that the public interest in maintaining the exemption outweighs the public interest in disclosing the information
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1.0 PURPOSE OF REPORT
1.1 The purpose of the report is for the Council to seek in principle approval to enter into a Limited Liability Partnership with Lovell Partnerships Limited (Lovell) to form a Housing Delivery Vehicle subject to satisfactory outcome of the preferred bidder stage to contribute to housing delivery growth and which will form the subject of a further Executive report. |
2.0 BACKGROUND
2.1 North Yorkshire Council has an ambition to ensure the delivery of 802 new affordable homes per annum as set out in its Housing Strategy 2024-2029. To support the delivery, the Council is seeking to explore several delivery mechanisms which includes the forming of a Joint Venture Vehicle.
2.2 Historically Scarborough Borough Council also sought to increase the delivery of affordable housing and following the adoption of an options appraisal and business case it undertook a competitive dialogue process to procure a strategic development partner with whom to establish a Joint Venture housing development partnership. The final tenders were received on 19th August 2022, and these tenders were evaluated in accordance with the pre-determined award criteria and evaluation methodology detailed in the procurement documents.
2.3 The tender evaluated as being the most economically advantageous by Scarborough Borough Council was submitted by Lovell, who were consequently identified as the Preferred Bidder. All bidders were notified of the selection of the Preferred Bidder.
2.4 In November 2022 Scarborough Borough Council subsequently approved the establishment of a Joint Venture Limited Liability Partnership with Lovell, for the purposes of delivering good quality and environmentally sustainable homes, with a focus on accelerating the provision of affordable housing and generating social value. However, in view of the proximity to vesting date this decision was subject to obtaining consent from North Yorkshire County Council (now North Yorkshire Council).
2.5 The principle of the Joint Venture partnership is that a Limited Liability Partnership is incorporated with two members – North Yorkshire Council and Lovell. It works on a shared risk and shared reward basis. The Council would contribute land to the Joint Venture and Lovell would match the value of the land with development funding. This is on the basis of a 50/50 share in the vehicle meaning that both members are entitled to 50% of profits generated.
3.0 WHAT IS A JOINT VENTURE?
3.1 A Joint Venture in the form of a Local Asset Backed Vehicle allows a public body to use its land assets to leverage private sector finance and skills. The partnership will enable the Council to secure financial investment and development resource and expertise to deliver quality homes at pace, whilst retaining decision making power. It also enables the sharing of development risk with an equally incentivised experienced market leader and generating a financial return in the form of profit from its land value. This can be reinvested into the delivery of higher numbers of houses including an increased number of, and better quality of affordable homes than either the Council, or the market, could provide in isolation.
3.2 A Joint Venture delivers a range of benefits that other housing delivery routes do not. For example, an unconditional land disposal will allow for an immediate capital receipt but loses the control over the quality of the development or the timescale as to when housing is delivered. Furthermore, direct delivery by the Council and/or its wholly owned companies is limited in regard to scale and the Council is not geared up to deliver larger sites.
A Joint Venture approach therefore delivers a range of benefits including: -
· The Council has influence over what is delivered on site such as
o Increased delivery of affordable housing (above planning policy compliant levels)
o Increased standards – ensuring that National Described Space Standards are met, increased energy efficient measures and carbon reduction, ensuring that design is “tenure blind”
· Increased Development Capacity: Joint Ventures allow the partners to scale up development operations, delivering more housing than they could achieve independently.
· Delivery of sites that are suffering from market failure by including them in a wider programme of sites, where the profits from other sites can help to meet any viability gaps
· The Council can tap into the expertise and resources of private sector partners to accelerate project timelines.
· Risk Sharing: Development projects carry inherent risks. Joint ventures allow these risks to be shared between partners, reducing the financial burden on any single entity.
· Access to Expertise: Partnerships with private developers provide access to specialised skills in areas like planning, construction, and sales.
· Lovell offer added social value through schemes such as care leavers’ programme, working with Ex-Veterans and young people as well as neurodiverse groups
· In addition, the Joint Venture will facilitate upskilling and training, including apprenticeships, thereby assisting towards plugging well documented construction industry skill gaps.
· The Council shares the overall profits 50/50 with Lovell
· Can assist in delivering and accelerate the overall housing delivery target of 4,126 homes per annum being met
· Joint Ventures between Councils and private developers with significant development experience give funding bodies such as Homes England and YNYMCA confidence in terms of delivery and therefore can secure access to grant funding which could amount to several £millions.
4.0 OPTIONS APPRAISAL AND BUSINESS CASE FOR A JOINT VENTURE
4.1 The procurement of Lovell by Scarborough Borough Council was preceded by an options appraisal which included site disposal, development agreement model and the joint venture model as options. This was followed by the development of a full business case which was approved by Scarborough Borough Council on 29 June 2021. The business case demonstrated that the joint venture model scored the highest overall against the headline objectives set by Scarborough Borough Council. This was based on the Council’s ability to influence the design, quality, pace and delivery programme of development, the ability to secure social value, ability to delivery good quality homes in relation to space standards, accessibility, adaptability, and environmental sustainability. Furthermore, the business case established the ability to increase the levels of affordable housing, ensuring that the Council can be flexible and react to changing market conditions. where it recognises that sites would not be delivered, and could then be. released as quickly to the market as the sale of a site. The business case concluded that the overall financial return is most favourable through a Joint Venture Vehicle.
4.2 North Yorkshire Council has a much larger land holding than Scarborough Borough Council. It is therefore reasonable for the Council to ensure that several delivery mechanisms are available, and it is therefore anticipated to utilise other delivery mechanisms such as land disposal and direct delivery alongside the Joint Venture Vehicle. This also ensures a balanced risk exposure.
4.3 The strategic objectives that were agreed by Scarborough Borough Council are considered to be still relevant to North Yorkshire Council. The objectives have been reviewed and updated but remain largely unchanged and now read as follows:
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to form a long-term partnership to fund, enable and, where appropriate, develop a programme of key sites and for the partners to have an equal decision-making authority within the partnership |
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to deliver high quality new housing and regeneration in line with local needs now and in the future, with the overarching aim of delivering significant levels of affordable housing in excess of local planning policy requirements |
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To deliver high-quality sustainable housing and community living that contributes to meeting climate change aspirations and protecting and enhancing the County’s environment. |
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To address housing needs across the County, with a mix of homes, types and tenures that meet the needs of all ages and specific groups. |
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to maximise social value contribution from the activities of the Joint Venture |
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to drive the pace of development |
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to acquire (from any source) and/or sell land for the purpose of achieving the Objectives, in particular delivering significant levels of affordable housing |
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to maximise grant funding into the Joint Venture |
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the Council to invest its land to receive meaningful returns and it also has some appetite for risk, subject to investments being balanced by commensurate reward |
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to enable
the Council to
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The original and revised objectives are attached as Appendix A. These objectives align with the Council’s Housing Strategy 2024-2029.
4.4 The Council also has a housing delivery target of 4,126 homes per annum. Whilst the emerging Local Plan is being developed to address this target, the Joint Venture Vehicle would add overall capacity for delivery across the County.
4.5 The Business Case for entering a Joint Venture therefore remains valid, however, Local Government Reorganisation has occurred since the business case was developed, and the implications are set out below: -
4.5.1 Land Holdings
To align with the above objectives, the Business Case for entering a Joint Venture remains valid. However, the increase in land holdings, resulting from the merger of assets from eight councils, has expanded the scope and scale of potential housing delivery. In acknowledging that the Joint Venture model is not the exclusive option for housing delivery, North Yorkshire Council has resolved to employ a variety of delivery mechanisms to address housing needs across the County, including site disposal, asset enhancement (obtaining planning consents on NYC owned land), direct delivery and the use of its wholly owned company Brierley Homes.
4.5.2 Housing Revenue Account
Scarborough Borough Council was not a housing stock holding authority. However, North Yorkshire Council operates a Housing Revenue Account and has the ability as a Registered Provider to work with the Joint Venture to purchase any affordable homes. This would not impact on the validity of the business case.
4.5.3 Initial Sites
Scarborough Council identified 8 initial sites on which the procurement team tested the bidders approaches in meeting the objectives. The sites have been reviewed and whilst some of the original sites remain, the list of sites has been updated to reflect the wider geography of the new Council whilst also recognising the work that has already been carried out in terms of initial designs and feasibility work. Overall, the number of initial sites has been reduced to four sites. The indicative list of sites is set out in section 6.
5.0 PROCUREMENT IMPLICATIONS
5.1 The former Scarborough Council followed a competitive dialogue process to secure a development partner. The key aim was to increase the delivery of affordable homes. As Local Government Reorganisation was anticipated throughout the procurement process, the procurement was structured in such a way that it allowed for the vehicle to deliver across North Yorkshire and the contract value was published at an estimated value £130 million to £3.9bn with a view for the vehicle to remain in place for 30 years.
5.2 Throughout the process, the Council was guided by external consultants and legal advisors and following a robust tender evaluation process, Lovell’s tender was evaluated as the most economically advantageous tender and were identified as the preferred bidder. All bidders were notified on 7th Oct 2022 of the identity of the preferred bidder in accordance with Regulation 86 of the Public Contract regulations 2015 and the statutory standstill period has ended.
5.3 As significant time has passed since the preferred bidder has been identified, the Council has sought further assurance from their legal advisors regarding compliance to Procurement regulations. The advice concludes that the Council is at low risk of challenge from other bidders regarding the time that has passed since the stand still letters were issued (7 October 2022).
5.4 The Council is now a landlord in its own right and is looking to purchase affordable homes from the Joint Venture Partnership subject to approval of the Joint Venture being incorporated. The purchase of affordable homes from the Joint Venture is anticipated to be governed under separate purchase agreements. As the Council disposes of sites to the Joint Venture partnership and enters into land transfer agreements, it would include a “right of first refusal” for any affordable homes that are delivered on Joint Venture sites. This is similar to other sites that the Council disposes to developers where the Council may retain a “right of first refusal” for the affordable homes. The original procurement allowed for the Joint Venture to work with any Registered Provider to take on the affordable units. As part of Lovell’s bid, Lovell identified North Yorkshire Council as a potential Registered Provider. Procurement advice regarding this matter has been sought and concluded that the risk of challenge is low.
5.5 The procurement exercise was flexible in its approach to sites by allowing new/additional sites to be considered by the Joint Venture and original tender sites to be removed. There were eight initial sites that were tested. The Council not proposing to progress with all of the sites and has also added a new site to the programme of initial indicative sites. The change of sites does not pose a procurement risk.
6.0 THE INITIAL SITES
6.1 In order to reflect the changed geography and increased land holdings of the Council, officers reviewed the list of sites and proposed the following as indicative initial sites for the Joint Venture (subject to further business case development and approval of the Executive).
· Musham Bank, Eastfield, Scarborough
· Sandsend Lane, Whitby
· Rievaulx Road, Whitby
· Sharphaw Avenue, Skipton
The above reflects a range of considerations including the work already carried out by Lovell as part of the tender process as well as, reducing the number of sites in the first tranche and introducing a site outside of the former Scarborough Borough Council administrative area. For clarity, this report is not asking for the disposal of these sites. Only once satisfactory site business plans are prepared, a further report will be taken to the Executive, outlining the business plans and seeking approval for disposal to the Joint Venture taking into account any valuation considerations.
6.2 The proposals for these sites are currently at “Scheme Brief” stage. This means no pre-application planning advice has been sought nor have any site surveys been undertaken. Viability and profitability have therefore been assumed based on an initial scheme design and typical costs for a site of that nature. Through a residual development appraisal, a land value is established.
6.3 The next step is to deliver an “Early Site Business Plan” which will include obtaining pre-application planning advice, site surveys and searches. Once this work has been done, it will determine a Base Land Value for the initial sites, however, due to the complexities of Musham Bank, Eastfield, only an indicative value will be able to be established for the overarching business plan. If the “Early Site Business Plan” and Base Land Values are satisfactory, a further report will be prepared for the sites to be approved for allocation and subsequent disposal to the Joint Venture Vehicle by the Executive.
6.4 Under the provisions of s.123(2A) of the Local Government Act 1972, the Council is required, prior to disposing of land consisting of open space, to advertise its intention to dispose of such land and to consider any objections to the proposed disposal. The identified initial sites comprise open space. As a result, a recommendation of this report is that the Council undertakes the open space notification process concurrently with the finalisation of the preferred bidder stage. Consideration of the objections will form part of a further Executive report.
6.5 When entering into the Limited Liability Partnership, the initial sites that are listed become committed to the Joint Venture. However, several safeguards are put in place. These include ensuring a base land value for three of the sites and that sites are phased in a manner that they are only released once performance on previous sites or phases has been proven. Additionally, long stop dates would be incorporated into any land transfer agreements ensuring that if certain milestones are not achieved within a set timeframe, the agreement to dispose of the land to the Joint Venture falls away resulting in the Council being free to progress the land as they wish.
7.0 COMMERCIAL AND FINANCIAL TERMS
7.1 Lovell were identified as the preferred bidder. The next stage (called the preferred bidder stage) will refine the commercial and financial terms but on a high level. These are set out in the confidential Appendix B.
7.2 The Joint Venture is a based on a 50/50 principle meaning that both parties put 50% of equity into the vehicle. The Council will do so in the form of land assets which Lovell will match with development finance. The land figure is 100% Open Market Value which is independently verified by an RICS Valuer utilising the Residual Land Valuation method as outlined in the Red Book. All profits generated will be shared 50/50 after all debt repayment. The principles of the agreement are that Lovell would act as development manager for the Joint Venture. This involves but is not limited to appointing and managing consultants, commissioning surveys, producing business plans as well as appointing and managing the contractor. A Development Management agreement will be drawn up between the Joint Venture and the Lovells Partnerships Ltd. Appendix C provides a diagram showing the structure of the Joint Venture.
7.3 As part of Lovell Partnerships Ltd tender return, it was proposed that Lovell would have construction exclusivity. This means that Lovell will also act as main contractor and benefit from construction exclusivity with the Joint Venture for five years. There are monitoring requirements and a procurement policy associated with the construction activity which enable the Council to ensure best value is achieved as well as KPIs and termination rights should Lovell not achieve best value or perform poorly.
7.4 The Council would only commit to contributing its land assets to the Joint Venture with all other funding to be provided by Lovell and/or other third parties. However, the Council can provide further funding to reduce the liabilities of the Joint Venture and can also act as Senior Lender where development cashflow requirements exceed initial matched equity.
8.0 CONTRIBUTION TO COUNCIL PRIORITIES
8.1 The scheme contributes principally to the following Council priority:
“Place and Environment: Good quality, affordable and sustainable housing that meets the needs of our communities”.
9.0 ALTERNATIVE OPTIONS CONSIDERED
9.1 As outlined above, a full Options Appraisal was previously carried out by Scarborough Borough Council, which considered a range of options for taking land forward. Not to progress with the Joint Venture has also been considered. however, this would significantly impact. Other options for delivery are also being considered and will be assessed on a case-by-case basis.
10.0 IMPACT ON OTHER SERVICES/ORGANISATIONS
10.1 A Joint Venture Board would be set up and consist of three officer representatives from the Council and 3 from Lovell. Certain decisions will not be able to be made by the representatives and will need to be referred back to the Members (Council and Lovell). We envisage that we will have an operational board which will have representation from the Council and Lovell. This would be a non-decision-making board that meets prior to any Joint Venture Board. Council Officers together with the Joint Venture supervisor and Lovell Representatives would review board papers, business plans and development appraisals. This would give Council officers the ability to brief the three representatives prior to the Joint Venture Board meeting and would also allow for feedback to the Development Manager on the Joint Venture board papers before they are presented at the Joint Venture Board. Further, the Leisure and Housing Overview and Scrutiny Committee and the Shareholder committee would receive regular updates regarding the performance of the Joint Venture. No additional staffing is envisaged as part of implementation of the Joint Venture, but existing resource from Housing, Finance, Commercial, Legal and Property will be required to provide challenge and scrutiny to the Joint Venture as well as reporting to various internal boards. Resource is required from senior officers to act as representatives on the Joint Venture Board. Further, Finance resource will be required with regard to the Treasury and Statutory Accounting implications and reporting requirements. The business case estimated that approximately 25 days per month across different staff levels and services is needed resulting in an estimated cost of £100,000 per annum.
11.0 FINANCIAL IMPLICATIONS
11.1 As set out in section 6, the Council’s 50% equity investment into to the Joint Venture will be in the form of land assets, converted into loans upon disposal of sites to the Joint Venture, based on the Open Market Value for the final approved business case on a site-by-site basis. The Council will not be obliged to provide any other form of funding, although there is an option to do so within the funding mechanisms, as there is for Lovell’s, along with the use of 3rd party debt. An indicative financial table has been produced in the confidential Appendix B based on the initial sites to provide an illustration of likely exposure within the Joint Venture.
11.2 No specific targets have been set internally regarding return on investment as the primary objectives of the Joint Venture are to support Housing delivery and investment of Council returns to increase the level of affordable housing, deliver social value outcomes or improve the quality of development. As a result, in line with the Treasury Management Strategy and Minimum Revenue Provision (MRP) Policy, equity loans will result in an increase to the Council’s Capital Financing Requirement (CFR) and will not attract an MRP charge. The CFR will be repaid in full as equity loans are repaid. That said, appropriate financial performance measures will be embedded as part of the Joint Venture reporting process and oversight.
11.3 Housing Revenue Account (HRA) acquisitions of affordable units developed by the Joint Venture will be funded from the existing Housing Delivery Programme capital budget. Acquisitions will be based on an agreed transfer price formula, giving a level of certainty to both the HRA and the Joint Venture.
11.4 The costs associated with progressing the preferred bidder stage (primarily legal and consultancy) will be met from existing budgets within the Housing Service.
12.0 LEGAL IMPLICATIONS
12.1 A local authority is able to set up an Limited Liability Partnership by virtue of the general power of competence and taking into consideration the case of Peters v Haringey (2018) which established the dominant purpose test which is an examination of the principal motivation of the local authority (irrespective of the modification of the other participants) in entering into an Limited Liability Partnership. Where the motivation is principally commercial, activities will need to be undertaken through a company structure. However, where the dominant purpose is not commercial, local authorities are empowered to participate in a Limited Liability Partnership. As the dominant purpose of the Joint Venture is housing delivery a Limited Liability Partnership is the appropriate vehicle.
12.2 Before setting up a LimitedLiability Partnership a local authority must prepare and approve a business case setting out the objectives of the business, investment and other resources required, risks the business may face including the significance of those risks and the expected financial and other outcomes of the business. Scarborough Borough Council prepared that business case in June 2021 which has been verified by the project team comprising officers from housing, property, finance and legal and still considered relevant to North Yorkshire Council.
12.3 A competitive dialogue process was undertaken by Scarborough Borough Council pursuant to the Public Procurement Regulations 2015. The Council has obtained external legal advice which has confirmed that it can continue with Scarborough Borough Council’s procurement and conclude negotiations with the preferred bidder with low risk of challenge.
12.4 To formally set up the Joint Venture, several legal documents need to be agreed and finalised with Lovell. These include:
· Member’s agreement
· Conditional Land Transfer agreement
· Development Management Agreement
· Loan instruments
12.5 Whilst these have been largely drafted as part of the procurement process, further negotiation throughout the preferred bidder stage is required to ensure that these are finalised to protect the Council’s position and satisfy all legal requirements. This will include taking account of best consideration requirements by virtue of section 123 of the Local Government Act 1972. The progress of negotiations including full details of any remaining risks associated with the legal agreements will form the subject of a future Executive report seeking approval to formally establish the Joint Venture. Further detail on these risks and legal requirements is set out in the Risk Management section below as well as the confidential Risk Register in Appendix F.
12.6 As set out above, the identified initial sites comprise open space land. This report therefore seeks authority to advertise the potential disposal of this open space. Section 2A of the Local Government Act 1972 requires a local authority to advertise its intention of disposing of open space and consider any objections prior to any proposed disposal. Consideration of the objections will form part of a further report at the end of the preferred bidder stage.
13.0 EQUALITIES IMPLICATIONS
13.1 An Equalities Impact Assessment screening form has been attached as Appendix D to this report. The screening assessment has indicated that there are no adverse impacts, so no full assessment is required.
14.0 CLIMATE CHANGE IMPLICATIONS
14.1 An initial Climate Change Impact Assessment (see Appendix E) has been undertaken and has assessed that there are no adverse impacts, and a full Climate Change Impact Assessment is not required.
15.0 RISK MANAGEMENT IMPLICATIONS
15.1 The key risk of not progressing with the Joint Venture is that the Council’s aim of delivery 802 affordable homes per annum as set out in the Housing Strategy 2024-29 is not actively supported by the Council. A full risk register including legal risks is set out in the confidential Appendix F.
15.2 Through being a partner in the Joint Venture, the Council is taking on development risk which is relying on sales receipts exceeding development and land costs. The development appraisals are assuming development profits on open market sales and on affordable homes. These profit margins would have to be eroded before there is an impact on the capital receipt to the Council for the land and the repayment of development costs that Lovell provide. In reality, the Joint Venture would slow down the build out rate if house prices are not performing as expected. A higher level of affordable homes on the sites however provide certainty around sales (sales to the Housing Revenue Account) and can reduce financial risk.
15.3 Overall house price growth in the North is predicted to outstrip build costs resulting in a healthy upside in margin. As development land values are inherently linked to construction and house prices, this will naturally increase to offset the margin improvement for the Joint Venture.
15.4 Another key risk for the Council is to secure capital receipts for its land asset at market value. The Council manages this risk by securing a base land value for 3 of the indicative sites. Within the land transfer agreements, it is anticipated that the base land value is the minimum purchase price, therefore the Council would not need to proceed with the land transfer, should the base land value not be reached. The risk on Middle Deepdale/Musham Bank is that the indicative land value in the overarching business plan that is to be developed, could drop due to rising construction costs, planning requirements, ground conditions, a weak housing market etc. If the land value drops too much the Council may want to delay the development of the land until the market is in a better position.
15.5 The Council has the option (acting reasonably) to approve or not approve business plans at various stages. As part of the settled Site Business Plan an agreed final land value is agreed. This valuation for the purposes of the land transfer from the Council to the Joint Venture will ultimately be based on an independent Red Book Valuation. In view of the fact that the valuation takes into account any limitations associated with delivering the scheme such as site conditions, increased levels of affordable housing and quality standards, this value may be less than best consideration in the context of section 123 of the Local Government Act 1972. The 2003 General Consent permit disposals at an under value where the disposal seeks to secure the promotion of economic, social or environmental well-being in the area. Where the undervalue is above £2m then the permission of the Secretary of State is required for the disposal. Recognition of the potential undervalue for each disposal and ensuring the Council meets its best consideration obligations will need to be built into the valuation and approval process of disposing of land to the Joint Venture. However, for clarity, the disposal of sites and the final valuation process will form part of a further report.
15.6 Any cost plans, development appraisals and procurement exercises will be subject to full open book principles. Within property, commercial, finance and housing there is development experience and expertise that allows for appropriate challenge. The Council is also able to instruct external consultants for any specialist advice it requires. It is also recommended that the Joint Venture appoints a Joint Venture supervisor which would be a Quantity Surveyor role that would check and challenge costs. This role would have a duty of care to both the Council and Lovell. Any disposal could also be subject to an independent red book valuation as with all of the Council’s land disposals. Further, it is anticipated that an operational board is established that would meet prior to any Joint Venture Board to review board papers and to be able to brief representatives on the Joint Venture Board ahead of any board meetings. The operational board would be attended by the Joint Venture supervisor, development manager, Council officers and Lovell representatives.
15.7 Before land is transferred to the Joint Venture, certain conditions will need to be met covering planning, title, funding and settled site business plan. However, another condition called a milestone condition can be introduced to manage performance. One way to manage performance is to link a land transfer to performance on another site – i.e. we may request that the Joint Venture has to have built out a specific % on one site and be on track to achieve a certain level of profit (the Milestone Condition). The principle of the milestone condition has been established with Lovell and the detail would be negotiated at the preferred bidder stage. The Council would also include “Long-stop” dates into any land agreements as set out above. This means that if an Early/Settled Site Business Plan has not been developed within a certain timeframe, the land agreement would fall away. This provides the council with some mitigation against entering into a land agreement before a value for the land is established as would be the case for Middle Deepdale as set out above.
16.0 REASONS FOR RECOMMENDATIONS
16.1 To enable the Council to progress the negotiations with Lovell Partnerships Limited.
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17.0
17.1
17.2
17.3
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RECOMMENDATION(S)
The Executive is asked to ratify the previous options appraisal and business case of the Joint Venture and approve the principle of creating a Joint Venture limited liability partnership between the Council and Lovell and for the purposes of constructing and accelerating the delivery of good quality and environmentally sustainable homes, with a focus on accelerating the provision of affordable housing and generating social Value.
To approve entering into preferred bidder stage with Lovell to form a Housing Delivery Vehicle noting that the formal agreement to set up the Joint Venture will be subject to a further Executive approval.
To approve to consult on/publish notice regarding the disposal of open space land pursuant to s.123(2A) of the Local Government Act 1972 and as set out in paragraph 6.1
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APPENDICES:
Appendix A – JV Strategic Objectives
Appendix B – Commercial and Financial Terms (Confidential)
Appendix C - Joint Venture Diagram
Appendix D – Equalities Impact Screening Assessment
Appendix E – Climate Change Screening Assessment
Appendix F – Risk Register (Confidential)
BACKGROUND DOCUMENTS:
Business Case approved by Scarborough Borough Council Cabinet on 29th June 2021 (Better Homes - Use Of Council Owned Land To Support The Provision Of Affordable Homes – Procurement Of Development Partner)
Meeting of Scarborough - Cabinet on Tuesday, 29 June 2021, 10.00 am | North Yorkshire Council
Nic Harne
Corporate Director – Community Development
County Hall
Northallerton
30 May 2025
Report Author – Hannah Heinemann, Head of Service – Housing Delivery and Partnerships
Presenter of Report – Hannah Heinemann, Head of Service – Housing Delivery and Partnerships
Note: Members are invited to contact the author in advance of the meeting with any detailed queries or questions.