Culture Coventry Trust - Financial Performance and Support arrangements
Report of the Deputy Chief Executive (Place)
(Listing Officer: P Helm, Telephone 024 7683 1301)
Minutes:
Further to Minute 141 above, the Cabinet considered a private report of the Deputy Chief Executive (Place) that set out confidential aspects of proposals for the City Council to provide financial support to the Culture Coventry Trust to enable it to establish a robust Medium Term Business Plan.
RESOLVED that the Cabinet:
1. Approves the deferral of the existing monies, to the sum indicated within the report, owed by the Culture Coventry Trust to the City Council in respect of the Transport Museum extension project, until April 2018.
2. Endorses the cost reduction measures proposed by the Culture Coventry Trust, subject to on-going monitoring by City Council Officers.
3. Approves the funding by the Council of the one off redundancy costs of the Culture Coventry Trust’s management restructure up to the value indicated in the report through the provision of additional one-off grant funding.
4. Approves in principle (subject to scrutiny by Council Officers) the provision of a loan(s) up to the sum indicated in the report from the Council to the Culture Coventry Trust to be repaid at a commercial rate for the following:
• To enable the Culture Coventry Trust to pay their next three years West Midlands Pension Fund contribution in advance, up to the sum indicated in the report.
• Up to the sum indicated in the report to be made available for drawdown during 2017/2018 financial year to enable the Culture Coventry Trust undertake cost reduction and income generation initiatives to achieve a sustainable financial position.
5. Subject to approval of recommendation (4) above, approves as required, the issue of a letter of comfort to the Culture Coventry Trust confirming that the Council will provide financial assistance during 2017/2018 to enable it to carry out its cost reduction and income generation initiatives to achieve a sustainable financial position
6. Delegates authority to the Deputy Chief Executive (Place) and the Council’s Section 151 Officer to undertake the financial due diligence, negotiate and finalise the detailed terms of the loan arrangement and if satisfied as to their terms (and such other matters as deemed relevant) effect the completion of the appropriate loan agreement.