Agenda item

                 Report by Executive Director Terence Herbert 

Cllr Simon Jacobs, Cabinet Member for Finance and Procurement presented a report which detailed the proposed business plans for the Stone Circle Companies beginning in the financial year 2020/21.

Cllr Jacobs explained that the shareholder agreement between the Council and the companies requires the companies to present proposed business plans three months before the forthcoming financial year. The boards of the three companies met on 17 December 2019 to consider the business plans for 2020/21.

In addition, the report detailed proposals for the establishment of a new trading company within the Stone Circle Holding Company Ltd called Stone Circle Energy Company Ltd. The company would facilitate the sale of energy generated from the installation of photovoltaic cells at a Council park and ride scheme subject to due diligence and production of an acceptable business plan.

Resolved:   

1.    To agree the business plan for Stone Circle Holding Company Limited beginning in 2020/21 based on the business plans for the subsidiary companies.

2.    To agree the year one business plan for Stone Circle Housing Company Limited as set out at Appendix A in the exempt part of the agenda.

3.    Subject to Cabinet agreeing the Stone Circle housing company business plan at 1 and 2 above, to agree the loan agreement required.

4.    To support Stone Circle Housing Company Limited’s proposal to establish a shared ownership product and to agree to receive a detailed proposal as to how such a scheme would operate.

5.    To agree the business plan of Stone Circle Development Company Limited as set out at Appendix B in the exempt part of the agenda.

6.    Subject to Cabinet agreeing the Stone Circle development company business plan at 5 above, to agree the loan facility required.

7.    Subject to agreeing Stone Circle Development Company Limited’s business plan at 5 above, to agree to enter into sale contracts conditional upon obtaining planning consent for the following Council owned sites; Marlborough former resource centre, Ashton Street resource centre, Royal Wootton Basset former depot and Calne Priestly Grove as set out in appendix B1 in the exempt part of the agenda.

8.    To agree to delegate the decision to dispose of the New Zealand Avenue site to Stone Circle Development Company subject to Stone Circle Development Company Limited providing an acceptable project plan, to the Director of Finance and Procurement and the Director of Commercial, Housing and Commercial Development, in consultation with the Cabinet Member for Finance and Procurement and Cabinet Member for Spatial Planning Development Management and Investment.

9.    To agree that the Council’s legal services provide conveyancing and associated development legal services to Stone Circle Development Company Limited and the resourcing contract between the Council and the company is amended accordingly.

10.To agree to delegate authority to agree the project plan for each development proposed by Stone Circle Development Company Limited, to the Director of Finance and Procurement and the Director of Commercial, Housing and Commercial Development, in consultation with the Cabinet Member for Finance and Procurement and Cabinet Member for Spatial Planning, Development Management and Investment.

11.To agree to establish Stone Circle Energy Company Limited as a subsidiary of Stone Circle Holding Company Limited and the shareholders agreement and articles of association as at appendix C of the report.

12.Subject to agreeing to establish Stone Circle Energy Company Limited, at 11 above, to agree to recruit an independent director to the company and delegate the appointment to Executive Director of Children and Education.

13.To agree remuneration for Directors of Stone Circle Energy Company Limited of £2,000 per directorship for independent directors and Councillors who do not receive additional allowances that would reflect the work of the company.

14.Subject to agreeing to establish Stone Circle Energy Company Limited, to note the Stone Circle Energy Company limited business plan as at appendix D in the exempt part of the agenda and, to delegate to the Director of Finance and Procurement, in consultation with the Cabinet member Finance and Procurement authority to agree the business plan.

15.To agree to include £200,000 capital allocation in the 2020/21 capital programme as loan finance for Stone Circle Energy Company Limited to be released subject to production of acceptable project plan as required by the shareholder agreement,

16.To agree to delegate authority to agree a conditional sale contract for development proposed by Stone Circle Energy Company Limited on Council land to the Director of Finance and Procurement, in consultation with the Cabinet Member for Finance and Procurement and Cabinet Member for Spatial Planning, Development Management and Investment.

17.To agree to delegate authority to agree the project plan for development proposed by Stone Circle Energy Company Limited to the Director of Finance and Procurement and Director of Housing and commercial development, in consultation with the Cabinet Member for Finance and Procurement.

18. To agree to delegate authority to conclude detailed contract arrangements with the Stone Circle Companies including changes to the resourcing contract to the Director of Housing and Commercial Development in consultation with the Director of Finance and Procurement and the Director of Legal, Electoral and Registration Services.

Reason for Decision:

The proposals aim at complying with the shareholder agreement the Council

has with the Stone Circle Companies to agree the business plans and

consequent actions that the Council needs to consider.

(Note:

1.    Cllr Richard Clewer, Cllr Bridget Wayman and Cllr Ian Thorn, declared an interest in relation to this item as they are Directors of the Company. All the Councillors left the meeting during the item’s consideration.

2.    Alistair Cunningham, Executive Director, declared an interest in relation to this item as he is a Director of the Company. He left the meeting during the item’s consideration.)