Agenda item

North Tyneside Trading Company - Strategic Business Plan 2020- 23

To consider a report seeking approval for the Trading Company’s Strategic Business Plan 2020-23.

 

 

Minutes:

Cabinet received a report seeking approval of the North Tyneside Trading Company’s Strategic Business Plan 2020-23.

 

The Trading Company had been established as a company limited by shares, in December 2012.  It was wholly owned by the Authority and the Authority was therefore the sole shareholder of the Trading Company. 

 

The Trading Company had been created to provide services to public bodies and to other customers, as considered appropriate, enabling trading in new markets and different places.

 

All projects undertaken by the Company would aim to return a surplus or profit to the Authority and/or seek to achieve a regeneration objective in line with the Authority’s Our North Tyneside Plan and Ambition for North Tyneside.  Projects delivered would be at least cost neutral to the Authority.

 

The Trading Company had two active subsidiary companies.  These subsidiaries were wholly owned by the Trading Company.  The Trading Company and its subsidiaries were each governed by their respective Boards of Directors and were guided by their Articles of Association which regulated the affairs of each of the Companies. 

 

In accordance with best practice the Trading Company had a Strategic Business Plan, which it updated each year, to provide a sense of direction for the Company and to guide business development. 

 

The Board of Directors of the Trading Company had reviewed and refreshed the Strategic Business Plan for 2020 – 2023.  The Plan set out the Trading Company’s history; its governance arrangements; its mission/purpose and its approach to appraising business opportunities, assets, products and services and risks.

 

Since its development of 13 new build affordable homes in Camperdown, the Development Company had devised in 2017 a purchasing strategy and had since then proceeded to acquire 36 homes on the open market, therefore taking its total number of homes to 49 as at April 2020. In line with the Cabinet’s priority of delivering more affordable homes the Board had reviewed and extended their purchasing strategy with the aim of purchasing a further 51 homes to take the Company’s asset base up to 100 homes. Funding of these purchases was via a grant from the Authority of Section 106 Town and Country Planning Act 1990 commuted sums available for affordable housing.

 

Following the successful completion of its first new build development of 12 bungalows at Wallington Close in 2018, Aurora Properties (Sale) Limited had now also successfully completed its second 12 home luxury development for market sale at Empress Point, Whitley Bay in 2019.

 

The Company was also well underway with its third scheme of a further 28 homes for market sale at Northumberland Square in North Shields which was due to be completed in 2020. The scheme at Northumberland Square was at the heart of the North Shields Regeneration Project, kick-starting the drive to improve the appeal of the town centre for residents and visitors.

 

Cabinet approval had also been obtained for a development of seven further homes on the site of the former Backworth Primary School. Funding for the construction of these homes was from the Council in the form of both debt and equity funding.

Opportunities for the development of sites and other potential trading options would be considered and presented to Cabinet for consideration, in line with their priorities, at the appropriate time.

 

The full Strategic Business Plan was attached at Appendix 1 to the report.

 

Cabinet considered the following decision options: either to agree the recommendations as set out in section 1.2 of the report, or, alternatively to not agree the proposals and refer the Business Plan back to the Trading Company to examine further options/opportunities.

 

Resolved that the North Tyneside Trading Company Strategic Business Plan 2020-23 be approved.

 

(Reason for decision:  It will allow the Trading Company to continue with the activities

set out in the Strategic Business Plan, including continuing with the purchasing

strategy of homes to be let at an affordable rent and the construction of new homes 

for market sale, in line with Cabinet approval.)

 

Supporting documents: