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Agenda item

Brick by Brick Annual Business Plan

Officer: Shifa Mustafa

Key decision: no

Decision:

The Leader of the Council delegated authority to the Cabinet to make the following decisions.

 

RESOLVED:

 

That Cabinet, on behalf of the Council as sole shareholder of Brick by Brick Croydon Limited ("BXB"), approve the 2019/2020 Business Plan of BXB as set out in Appendix 1 of the report.

 

Minutes:

The Cabinet Member for Homes & Gateway Services stated it was an exciting year for Brick by Brick as residents would begin to move into the homes which had been built and Fairfield Halls was due to open in September 2019 following a full renovation. Members were informed that the Croydon First mantra was being delivered as the homes that were built were available primarily to Croydon residents.

 

Colm Lacey from Brick by Brick delivered a presentation and outlined that the company was set up with the clear ambition of delivering for Croydon. Homes were being built on sites which were typically small and across the borough, and around 13,000 homes were in the process of planning or delivery. The strategic target for Brick by Brick was to deliver around 500 homes per year, with around 50% being affordable. At the time of the meeting, Members were informed that 48% of consented schemes were to be affordable.

 

Brick by Brick stated that they were continuing to actively work on the pipeline programme which was anticipated to deliver 50% affordable homes, with work currently taking place on pre-application for the Fairfield Homes. Work continued to develop a new staffing structure, with staff numbers having grown from 19 to over 35, and a marketing suite was due to open the following week in George Street which would enable the company to market available properties to Croydon residents.

 

Mr Lacey confirmed that profits from the schemes were reinvested into ensuring the delivery of affordable homes in other projects. Members were informed that quality of design and build were paramount as it was important that the homes which were built were homes which people were proud to live in.

 

In terms of Fairfield Halls, Members were informed that the internal works were due to be completed in 2019, and that the refurbishment works had been sensitive to all that was loved about the Halls.

 

Cabinet Members noted that the renovation of Fairfield Halls was the biggest statement for culture in south London in ten years, and the Halls would be an exciting asset to the borough and would deliver exciting partnerships with organisations which sought to enhance the culture of the borough.

 

In response to Member questions, Mr Lacey stated the lease for the marketing suite was for 10 years with a rent of around £40,000 per annum which was a favourable level and gave the company a high street presence. The marketing suite also had office accommodation above which was to be used by Brick by Brick staff.

 

Whilst it had been planned that Brick by Brick would be self-financing before 2022, it was now planned that more units would be delivered. The Cabinet Member for Finance & Resources confirmed the council supported the increased delivery of housing units which was crucial for families in the borough, and that the additional borrowing would be repaid. It was noted that the dividends received would be favourable to the council as the amount received would be higher than the amount the council had been charged in interest for the loans; however a prudent view had been taken on the level of dividends given the property market at the time of the meeting.

 

The Leader of the Council delegated authority to the Cabinet to make the following decisions.

 

RESOLVED:

 

That Cabinet, on behalf of the Council as sole shareholder of Brick by Brick Croydon Limited ("BXB"), approve the 2019/2020 Business Plan of BXB as set out in Appendix 1 of the report.

 

Supporting documents: