Issue - meetings

The Committee considered an update report on Ground Rent Estates 5 (GRE5) and the current position and future programme of works at Nova House since approval of the annual business plan and a further loan at Committee on 16^th March 2023.

It was reported that structural works were expected to be completed by November 2023 and the ‘waking watch’ would then be removed.  The replacement cladding works were expected to be completed in the third quarter of 2024.  The total forecast spend was currently £28.4m which was consistent with the figures reported in March 2023.  The costs had risen substantially in previous years and the reasons for this had been reported to Committee in March 2023.  The GRE5 Board monitored costs on a monthly basis.

The financial implications were reviewed in depth and the Committee noted the progress in recovery costs through insurance, government funding and leaseholders.  The final financial exposure to the Council was not yet known but it was reported that the worst case scenario was that it would be £7.6m.  However, a more realistic scenario was that the liability would reduce to £1.7m, which was before the potential recovery of costs from leaseholders.  Members of the Committee expressed dissatisfaction about how the Council had got into the position of significant financial exposure, however, it commended the work that had been undertaken to reduce the risks and put in place stronger financial and governance controls to manage the process.  It was important that any relevant lessons be learned for the future.

The report was noted.

Resolved –  That the current position on GRE5, including the latest estimate of the final financial exposure of SBC, be noted.