Report of the Deputy Chief Executive (Community Direction).
Minutes:
Further to the previous item, which resulted in agreement that this report would be discussed in public, members were updated on the current position regarding the Development Agreement with Tin Hat Regeneration Partnership and Sainsbury’s Plc. Recent communications and activity since the November 2012 Council meeting were highlighted and it was confirmed that discussions had taken place between the relevant parties.
During debate, some Members raised concerns that the matter should have been considered by the Scrutiny Commission to ensure full scrutiny of all aspects and informed decision making. Questions were raised regarding the level of borrowing to which the council had to commit, the commitment of Sainsbury’s, the viability of the scheme and potential to let the units. Members were informed that whilst there was risk to the authority with progressing with the development, the risk was within manageable limits and that the break even point to make the purchase of Block C financially viable was around 56% of units let as at this level the cost of borrowing would be off set by the rental income and business rates up lift. It was also acknowledged that the steps being recommended were not uncommon initiatives from councils in the current climate in order to move forward with town centre re-developments.
It was moved by Councillor Bray and seconded by Councillor Lynch that the officers’ recommendations be approved. Councillor Bray, along with seven other councillors, stood to request that voting be recorded. The vote was taken as follows:
Councillors Bannister, Bill, Bray, Cartwright, Cope, Crooks, Gould, Mrs Hall, Mr Hall, Hodgkins, Hulbert, Inman, Lynch, Mayne, Moore, Mullaney, Nichols, Taylor and Witherford voted FOR the motion (19);
Councillors Allen, Batty, Bessant, Camamile, Ladkin, Morrell, O’Shea, Richards, Smith, Sprason, Sutton and Ward voted AGAINST the motion (12);
Councillor Lay abstained from voting.
The motion was therefore declared CARRIED and it was
RESOLVED –
(i) the variations to the Development Agreement as set out in the report be agreed and the Chief Executive, in liaison with the Leader of the Council and the Executive Member for Finance, be granted delegated authority to conclude negotiations on a formal Deed of Variation;
(ii) the revised commercial terms, financial implications and risks as set out in the report be agreed;
(iii) the supplementary capital budget of £4,500,000 to reflect the Council’s capital investment in the Bus Station Scheme be approved;
(iv) delegated authority be granted to the Deputy Chief Executive (Corporate Direction), in consultation with the Executive Member for Finance, to amend the profile of this capital budget should it extend over financial years without the need for additional supplementary or carry forward requests;
(v) the short term rolling loan facility of up to £7,000,000 to the Tin Hat Partnership, be approved;
(vi) an amendment to the Treasury Management Policy to allow up to £7,000,000 of loan monies to be held with the Council’s own bank for a maximum of two weeks to manage any delays that may occur with the arrangements be approved;
(vii) an amendment to the Treasury Management Policy to increase the Council’s Authorised Limit by £13,250,000 to reflect the potential need for borrowing associated with the Bus Station and Leisure Centre schemes be approved;
(viii) the setting up of all interest payable/receivable budgets (including MRP) arising as a result of these transactions be approved;
(ix) the delivery programme be welcomed.