Decision details

The board considered a report of the interim Executive Director of Housing, Property and Regeneration that provided an update on the progress of the Stone Yard Development Project and sought endorsed of the recommended option from the five options open to the WMCA following the transfer of ownership of the Stone Yard site.

The Interim Executive Director of Housing, Property and Regeneration, John Godfrey outlined the background to the project, and the current position with regards to the grant agreement and the change of ownership.

It was noted that following the change of ownership of the site, external legal advice had been sought on the options available to the WMCA under the terms of the Grant Agreement which have been considered alongside advice from the WMCA’s internal legal team.

The Interim Executive Director of Housing, Property and Regeneration explained the reasons why option five was deemed to be the preferred option under the circumstances.

The board expressed concern that the contract had been extended without the terms of the grant being negotiated, including the grant payments made and scheduled and also that the new developer would not meet the Authority’s target of 20% affordable housing; the minimum 10% would be met.

The Chair noted that the intervention rate for the project remained low and the housing outputs were quite substantial.

In relation to how the decision had been made to extend the contract without negotiating the terms of the grant agreement, the Executive Director of Finance and Business Hub, Linda Horne, reported that the decision had been taken by the former Executive Director of Housing, Property and Regeneration, Gareth Bradford under delegated authority. The Executive Director of Finance and Business Hub undertook to request an investigation into the matter and report back to a future meeting.

The board sought assurance that no other contracts would put the WMCA in a similar position.

The Interim Executive Director of Housing, Property and Regeneration, John Godfrey reported that lessons would be learnt on how contracts were drafted going forward to ensure the WMCA was better prepared if there was a change in ownership. He added that the contract in question, was a bespoke contract that was made during lockdown.

The board agreed that if the new developer requires a further extension to the project, this be reported back for consideration. 

Resolved that:

1.    The options open to WMCA to take the transfer of ownership of the Stone Yard Development Site, and the limitations and risks associated with each option be noted and the Officer’s recommendations to adopt option 5 as set out in paragraph 3.7 of the report be endorsed and

2.    The recommendation that the Interim Executive Director of Housing and Property and Regeneration affirms the grant agreement between (1) WMCA and (2) Court (the Charter) Birmingham Limited, (subject to the grantee releasing all rights to the £1m final tranche) and the rationale for affirming the grant agreement be endorsed;

3.    That Officers intend to keep the prescribed terms of WMCA grant agreements under review be noted;

4.    That if the ‘Developer’ requires a further extension to the ‘start on site’ date of the project, a Change Request be submitted to Investment Board be agreed and

5.    That the Executive Director of Finance and Business Hub request an investigation into the decision-making process with regards to the extension agreed by the former Executive Director of Housing, Property and Regeneration with the ‘Developer’ and this be reported back to the Investment Board.