Decision details

To consider proposals to form a new Joint Venture company to facilitate housing and economic development in the borough.

Fareham Borough Council is proposing to form a new company in partnership with Eastleigh Borough Council, First Wessex and Radian Housing Association for the purposes of facilitating housing and economic development in a sustainable manner. 

The parties wish to enter into the Joint Venture to enable the parties to:-

•        meet housing need in its core areas of operation in partnership with other organisations

•        bring forward housing developments that may otherwise stall due to economic conditions.

•        increase housing supply in order to meet local housing needs.

•        increase the supply of market rented housing to overcome local shortages.

•        provide housing accessible to those in receipt of welfare benefits.

•        boost the local economy through development, creating work in construction and a range of other industries.

•        develop projects aimed at reducing carbon emissions and/ or increasing renewable energy usage.

The purpose of the Joint Venture (JV) is to primarily provide management, control and administration of the structure including high level risk management.

The company will be undertaking a continuing business which will have project based Special Purchase Vehicles (SPV’s) underneath the main structure.

The intention will be that each SPV will attract separate funding and that there will be a number of development projects arising. Each SPV will have different economic participants but all SPVs will be managed by the Joint Venture.

Investment in the specific housing projects will be ring-fenced in the relevant SPVs.

Investment and participation in individual SPV’s by Fareham Borough Council will be subject to a separate report relating to the individual SPV and approval of this Council’s Executive.

Approval is being sought for the Council to form the new company (with the partners listed above) and to nominate two persons to serve as directors on the Board of the company.

RESOLVED that the Executive:

(a)       agrees to Fareham Borough Council forming a new Joint Venture company (limited by guarantee) in partnership with Eastleigh Borough Council, First Wessex and Radian Housing Association for the purposes of facilitating housing and economic development in the borough;

(b)       authorises the Solicitor to the Council and the Director of Finance and Resources to prepare and sign on behalf of Fareham Borough Council the necessary documents leading to the formation of the new company;

(c)       authorises the Director of Finance and Resources to incur any necessary expenditure leading to the formation of the company; and

(d)       agrees the appointment of the Executive Member for Health and Housing and the Director of Finance and Resources to serve on the Board of the company.