Last week I blogged that Gravitas Housing Ltd has been planning to build houses in Bourne and that there are no definitive public evidence that South Kesteven’s Local Authority Controlled Company (LACC) is planning anything else.
On 10th January, the Deputy Leader, Cllr Kelham Cooke, decided formally to sell the Wherry’s Lane site to Gravitas Housing Ltd. If I have understood correctly, the council also agreed to lend £250,000 to Gravitas in order that they could afford to buy the land.
So, after securing the land and almost a year of Shareholder Meetings held behind closed doors, the Gravitas Directors (who are all employed by SKDC) decided to request planning permission for the erection of 25 dwellings on Wherry’s Lane in Bourne. A valid application was received by SKDC planning department on 27th March 2018 (which had been prepared by a consultancy in Louth!). Continue reading
Gravitas Housing Ltd is a company established and wholly owned by South Kesteven District Council.
What is a LACC?
In order to become more agile, flexible and able to generate revenue, many Council’s have chosen to establish Local Authority Controlled Companies (LACCs or sometimes pronounced ‘Lac-Co’).
Some LACCs have been very successful, for example Norfolk Property Services (NPS) which now has a group structure and trades as Norse Commercial Services delivering services to the public in many local authority areas (geographic areas and service areas).
Other Local Authority commercial ventures have been a nightmare, e.g. Solutions SK which was described as a ‘Four-Star shambles‘ when it lost £4.7million pounds in a year. When I say ‘lost’ I mean they couldn’t find it. The highly paid Directors employed for their commercial acumen couldn’t explain where it had gone. There was no question of fraud, only incompetence on a grand scale. I happy to report that the ‘SK’ in ‘Solutions SK’ refers to Stockport not South Kesteven. Presumably they couldn’t even spell Stockport Council when they set up the LACC.
Gravitas slowly takes off
Back in 2015, South Kesteven Councillors decided that the LACC vehicle was a band-wagon worth jumping on to and so a Shareholders Committee was formed. This is an advisory group to keep the company directors on track. Due to the need for political balance, the membership consists of four Tories and one Independent (which is me).
The first meeting was scheduled 4th July 2016 but this was cancelled. Another date was set for 6th September 2016 but this was also cancelled. The Shareholder Committee finally met for the first time on 3rd October 2016 Continue reading