QUESTIONS have been raised about the profits, ethos and local benefits of a proposed long-term joint venture lasting up to 15 years between a council and a private property firm.

Fears have been raised that local Pendle contractors and suppliers could miss-out on work, unless local procurement requirements are made clear in a new joint venture contract.

Borough councillors at the latest meeting of Pendle Council’s Policy & Resources Committee discussed the issues surrounding a recommended contract with Brookhouse Group Ltd, which could last between 10 and 15 years.

The partnership would focus on future regeneration and development projects across the borough. These could include the £25million Nelson Town Deal and Levelling-Up projects using government funding.  

Councillors were asked to approve a recommendation to offer the contract to Greater Manchester's Brookhouse, following a procurement exercise started last year to create a new joint venture partnership.

A new joint venture is needed because an existing partnership, called PEARL2, is reaching its limits. Previous success with PEARL joint ventures have included the regeneration of the landmark Brierfield Mill into the Northlight scheme, with homes and commercial spaces, along with new housing estates and employment projects elsewhere, councillors said.

Conservative Coun Nadeem Ahmed, leader of the borough council, said: “We have some exciting plans. The existing joint venture has been successful and brought huge benefits to residents. Now this is an exciting new chapter."

He added: “I do have a few questions and concerns. One is about the number of developers who have come forward. Initially there was talk of two developers showing interest but this is now one. Regarding the length of the contract, it is suggested for a 10-year period with an option for another five years.  Is this acceptable? Is this the norm? Finally, regarding the company which has been selected, I just want some more information about their history, that they have worked in towns like this? ”

The council’s executive director, Philip Mousdale, said the tendering process was very widely advertised but only two companies came forward. That was a fact which had to be accepted. The agreement with PEARL had been for 10 years. Extending beyond 10 years was a decision for the council, he added.

He did not have any information about Brookhouse Group’s previous experience but the firm had scored very highly in an appraisal verified by independent consultants.

Coun Ahmed recommended councillors on the committee to approve a set of three recommendations from officers. But he asked for an extra fourth recommendation to be added, requiring that once terms for the new contract had been finalised, the details would come to the policy committee for final approval.

New chief executive Rose Rouce asked if the extra recommendation could be included in an existing third recommendation, which include involvement of the chief executive.

Mr Mousdale said there was a risk that including the policy committee in another approval stage could delay the property firm’s appointment until March or May.

Greater Manchester-based Brookhouse Group works with landowners, local councils and private developers across the UK. In this region, it has worked with councils in Oldham and Knowsley, and its assets are valued around £500 million, its publicity states. It also has a sister company, Lancet Homes, which is looking for development sites.