Issue - meetings

Report of the Executive Director of Place

The Cabinet considered a report of the Executive Director of Place that sought retrospective approval for a new loan facility to support the second phase of the Cathedral Lanes development.

A corresponding private report detailing confidential aspects of the proposals was also submitted to the meeting for consideration.

In 2014, the Council awarded a Coventry Investment Fund (CIF) loan to Shearer Property Group (SPG) who own Cathedral Lanes shopping centre. The loan award made SPG’s plans to redevelop the centre as a leisure scheme and open several new restaurants, commercially viable. The first phase of the scheme had been very successful, and had formed a key part of the Council’s overall plans for regeneration of the City Centre.

It was necessary to enter into the loan agreement in advance of Cabinet and Council approval to allow SPG to meet the deadline for renegotiation of their Senior Loan. This was undertaken in consultation with the Cabinet Member for Strategic Finances and Resources and the Cabinet Member for Jobs and Regeneration, who agreed on the basis that a retrospective report was submitted.

SPG now wished to proceed with the second phase of the redevelopment which would include more new restaurants and bring with it further regeneration benefits and increases in business rates. The loan would be made on appropriate commercial terms and would be subject to usual Council controls on such lending.

RESOLVED that the Cabinet:

1)  Recommends that Council retrospectively approves the variation to the previous loan agreement granted to Shearer Property Group in September 2014 in relation to the refurbishment of Cathedral Lanes.

2)  Recommends that Council delegates authority to the Executive Director of Place and the Executive Director of Resources, following consultation with the Cabinet Member for Jobs and Regeneration and Cabinet Member for Strategic Finance and Resources, to manage the new revolving loan facility. The authority under this recommendation shall include the power to negotiate and agree variations to the terms of the new revolving loan facility.