Report of the Deputy Chief Executive (Place)
(Listing Officer: D Cockroft, Tel: 024 7683 3964)
Minutes:
Further to Minute 103 above, the Cabinet considered a private report of the Deputy Chief Executive (Place), that would also be considered by the Council at its meeting on 16th January 2018, that set out the confidential aspects of proposals for the City Council to enter into a joint venture partnership with Friargate LLP.
RESOLVED that the Cabinet:
1) Approves (following the approval and the acceptance of the grant funding from the West Midland Combined Authority) the creation of a joint venture limited liability company (LLP) between the City Council and Friargate LLP to accelerate a programme of building at Friargate,
2) Delegates authority to the Deputy Chief Executive (Place) and the Director of Finance and Corporate Services, following consultation with the Cabinet Member for Jobs and Regeneration and the Cabinet Member for Strategic Finance and Resources, to agree the final terms of the necessary agreements, provided that all the necessary due diligence in order to finalise and complete the process of entering into the joint venture contract with Friargate LLP have been carried out successfully.
3) Notes that the LLP arrangement requires the establishment of an LLP Members Shareholders Panel with equal City Council and Friargate LLP representation, supported by a Board of Directors for officers.
4) Recommends that the Council:
i) Approves that the City Council accept a grant funding of £51.2 million from the West Midlands Combined Authority and delegates to the Deputy Chief Executive (Place) and Director of Finance and Corporate Services, in consultation with the Cabinet Member for Jobs and Regeneration and the Cabinet Member for Strategic Finance and Resources, the authority to enter into the necessary grant funding agreement to secure the grant.
ii) Approves (following completion of recommendation 1 above) the sum now indicated, funded from corporate capital resources, to purchase a 50% equity stake in all of the land within the Friargate Masterplan and to delegate authority to the Deputy Chief Executive (Place) and the Director of Finance and Corporate Services, following consultation with the Cabinet Member for Jobs and Regeneration and the Cabinet Member for Strategic Finance and Resources, to enter into the Shareholder agreement, on the basis that the Council will see a commercial return on this investment over the medium term.
iii) Subject to recommendation 2, approve the sum now indicated is added to the Council’s capital programme, funded from corporate capital resources.
iv) Approves a loan in the sum now indicated, to Friargate LLP on commercial market terms to enable them to complete the necessary actions required with the National Asset Management Agency (NAMA) to effect the release its charge over the land within the Friargate Masterplan.
v) Approves the creation of a budget for £0.5m per annum for the first three years (total commitment of £1.5 million), funded from capital receipts, to match Friargate's contribution to fund the LLP, promote the scheme to investors and secure development.
vi) Approves that £51.2million is added to the Council’s capital programme, all funded from the West Midlands Combined Authority grant.
vii) Approves the Council representation on these Boards be agreed by the Deputy Chief Executive (Place) and the Director of Finance and Corporate Services, following consultation with the Cabinet Member for Jobs and Regeneration and the Cabinet Member for Strategic Finance and Resources, once the format of these Boards is established as part of the final terms of the agreement; and that the Council representation on the LLP Members Shareholders Panel will be from members of the Cabinet.