Decisions

Decision taken under the Chief Executive's delegated Urgency Powers (Pursuant to Part 3, Appendix 5, 4.10 of the Constitution of Ashford Borough Council)
Decision: To approve forward funding for the Chilmington Management Organisation (CMO)
I can confirm that in line with the Constitution of ABC, the following have been consulted on the matter of ABC approving forward funding for the Chilmington Management Organisation, pursuant to the legal advice received on the same and in respect of the use of Chief Executive Powers pursuant to Part 3, Appendix 5, 4.10 of the Constitution of ABC.
1. Terry Mortimer - Solicitor to the Council and Monitoring Officer;
2. Cllr Gerry Clarkson - Executive Leader - Ashford Borough Council;
3. Ben Lockwood – Deputy Chief Executive/Director of Finance and Economy and Section 151 Officer;
4. Cllr Noel Ovenden – Chairman of the Overview and Scrutiny Committee
Further to this consultation, all have expressed their agreement for the use of the Chief Executive Powers pursuant to Part 3, Appendix 5, 4.10 of the Constitution of ABC which would enable the forward funding to be in place a considerable time before the next council meeting in March 2022.
To enable the CMO to operate the Council are looking at a forward funding agreement with them. Although the Council has delegated authority to arrange the terms of such an agreement, it does not have a delegation to approve the forward funding.
The amount is £335,000 plus indexation (paid in stages, not paid unless needed). The trigger of 125 homes has been met so the money is due to the Council, to pass on to the CMO. The Council is not under obligation to pass this on until it has been received however, for the CMO to operate, they do need to prove they are not running at a deficit and that they have a balanced budget so a contract does need to be in place by mid-January 2022 if the CMO is to continue operating.
To enable this to happen the Chief Executive has used her powers of urgency to approve the forward funding. The Council can then sign off the loan to the CMO for them to set their budget.
The Head of Finance and IT will be meeting with the CMO quarterly and agreeing the payment that is required for the following quarter. The Council will not be releasing the full £335,000, only what is required on a quarterly basis. The CMO are managing their expenditure ensuring only essential spend is made.

To approve forward funding for the Chilmington Management Organisation (CMO)

To approve the Council’s purchase of 65% of the company to be registered and known as Ashford International Development Company, currently referred to as the New Town Works Company.
Exercise of Chief Executive's delegation granted at the Cabinet Meeting on 27th January 2022 - Minute No 259(iii)/1/22 refers.
Recommended:
(iii)responsibility for finalising the deal and sign-off be delegated to the Chief Executive, in consultation with the Executive Leader, subject to satisfactory oversight of a Due Diligence Working Group which will include the Chair of Overview and Scrutiny and the Portfolio Holders for Finance and IT and Regeneration and Corporate Property.

DECISION OF CHIEF EXECUTIVE OFFICER
Further to the satisfactory oversight of the New Town Works Due Diligence Working Group, I Tracey Kerly, Chief Executive Officer of Ashford Borough Council, having taken account of the Project Risk Assessment and having consulted with the Executive Leader, approve the Council’s purchase of 65% of the company to be registered and known as Ashford International Development Company, currently referred to as the New Town Works Company. As part of this decision, I authorise the putting in place of proper governance arrangements by way of amendments to the TEB terms of reference in order to bring the Ashford International Development Company within the oversight of TEB.
Now in accordance with the authority delegated to me, I hereby authorise the Solicitor to the Council and the Principal Solicitor (Property) to execute and complete the following documents and instruct the transfer of an amount equal to the Completion Payment (£1,426,695) to the Seller's solicitors’ client account on completion.
•Share Purchase Agreement
•tax deed
•Development Management Agreement
•the Disclosure Letter
•the Shareholders’ Agreement and the New Articles