Issue - meetings

Report of the Executive Director, Place

The Cabinet considered a report of the Executive Director, Place, which sought approval for the provision of unsecured cash-flow support of up to £2m to Culture Coventry for the duration of works, in advance of receipt of grants, for the International Transport Museum scheme.

The International Transport Museum scheme comprised a significant development of one of Coventry’s key cultural assets, the Coventry Transport Museum.  The scheme would include bringing back into economic use the Old Grammar School, one of Coventry’s most important historic buildings, which was currently unused and on the English Heritage ‘At Risk’ Register.

It was expected that the project would re-fresh and further energise the cultural offer and visitor experience at Coventry Transport Museum, enabling the museum to reflect the depth of Coventry’s role in pushing the frontiers of transportation manufacturing, whilst at the same time stimulating interest in emerging new technologies.  The development would deliver a much-enhanced, ground breaking museum which would build on Coventry’s role as a centre of innovation in world transportation, to attract new visitors to the City.

Subject to award, on 16^th April 2013 Cabinet gave approval for the Council to act as guarantor for the European Regional Development Fund (ERDF) grant contribution for the scheme.  ERDF funding of £3.1m and Heritage Lottery Fund grant of £4.63m had been secured for the scheme, but the grant could only be claimed retrospectively in phases, on evidence of expenditure.  Further to analysis of the grant funding profile and its wider business plan, Culture Coventry had therefore requested that the Council provide cash-flow support for the scheme to enable its successful delivery. 

Within the current profile for the scheme, Council cash-flow support to Culture Coventry would be required from April 2014 at an initial level of £0.25m, rising to a peak of £2m in January 2015.  Full reimbursement of the cash-flow support provided would be anticipated by June 2015 by the retention of grant payments by the Council to repay the cash flow support.

RESOLVED that the Cabinet recommend that Council:

1.  Approve the provision of unsecured cash-flow support of up to £2m to Culture Coventry for the duration of the works, in advance of receipt of grants for the International Transport Museum scheme.

2.  Delegate authority to the Executive Director, Place and Executive Director, Resources in consultation with the Cabinet Member (Housing and Heritage) to approve the profile and timing of cash-flow support to Culture Coventry to successfully deliver the development scheme.