The Role of Joint Ventures in Local Government Des Gardner Head of Regeneration (Legal) Manchester City Council

The Manchester Experience Housing - RSLs, ALMO, PFI Education- BSF, PFIs, Academies City Centre- Spinningfields, First Street Regeneration- New East Manchester Limited Regional - AGMA, CNE, Marketing Manchester

Corporate JV’s Company Limited by Shares –Private sector led and/or trading –Profit distributing –Assets Company Limited by Guarantee –Non profit making –Public/Third Sector –Charities

Corporate JV’s (2) Limited Liability Partnership –Property Investment –Profit Distributing –Public/Public Limited Partnership –Private Sector Led –Property Investment –Share in Development

Two Examples: Manchester Working  Service Partnership  Limited Company  Morrison Facilities Services Limited Piccadilly Place  Property Development  Limited Partnership  Argent Estates Limited

Manchester Working Company Limited by Shares MCC minority shareholder (20%) Morrison Facilities Services Limited private sector partner (80%) Services contract

Manchester Working Limited Housing- Responsive repairs - Decent homes - Specialist trades Public Buildings- Responsive repairs - Maintenance - Specialist trades

Manchester Working Limited City Works – Direct Services Organisation Housing Investment Options – Decent Homes – PFI, LSVT and ALMO - Northwards Housing Continuity of Service/Minimise Risks MCC/NHL Joint Procurement – Negotiated procedure Vision - a significant contractor within the Greater Manchester housing market, tendering for Decent Homes work for local housing companies and other construction work

Manchester Working Limited 14 Month Procurement Internal Organisational Review Robust Realistic View of “Business” Engagement with market pre procurement Detailed specification based on existing rates Use of Limited Company Structure

Manchester Working Limited Operational - September 2006 TUPE Transfer - ca.800 staff Decent Homes work delivered to programme Planned Preventative Maintenance programme developed Other Opportunities – Contact Centre Community Engagement

MWL - Challenges New Business MCC Demand Organisational Change Price – initially and changing market conditions

MWL - Benefits Strategically aligned – NHL 3 star rating Good transition – support for JV model among staff and members Transparency – seat on the Board. Approval of Business Plan Relationships – Senior Officers of organisation – channels of communication.

Piccadilly Place Mixed Use – Commercial, Hotel, Residential, Leisure/Retail in the City Centre. Publicly Owned Site – Subject to third party land interests Completed and opened – November 2009

Piccadilly Place Limited Partnership – Limited Partnerships Act 1907 Public Sector - 10% interest – land value Argent - 90% - investment model Development Agreement

Piccadilly Place Advertised sale of land Selected Argent – preferred developer Developer proposed model – maximise value and secure involvement in development.

Piccadilly Place – Legal Considerations Vires Limited Liability LLP- VAT + tax transparency - Vires

Piccadilly Place - Challenges Formal meetings – General Partner Monitoring – professional cost consultants Links with Lease/Development Agreement Legal Costs

Piccadilly Place - Benefits Strengthened Relationships – Long-term project Financially Beneficial – changing structure of development model Aligned Parties’ Interests – residential/ affordable housing

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