Issue - meetings

Report No:   CAB/SE/17/018

Portfolio Holder: Alaric Pugh           Lead Officer: Andrea Mayley

RESOLVED:

That:

(1)     a £4m revolving investment loan facility be agreed, as set out in Report No: CAB/SE/17/018, for infrastructure and associated works for Suffolk Park; and

(2)     subject to the satisfaction of the Section 151 and Monitoring Officers that appropriate security is in place to protect the Council’s investment and due diligence highlighting no significant risks to the Council has been completed, delegated authority be given to the Chief Executive in consultation with the Portfolio Holder for Planning and Growth to enter into a loan agreement(s) with the developer.

The Cabinet considered Report No: CAB/SE/17/018, which sought approval for a £4 million revolving investment loan facility for infrastructure and associated works at Suffolk Park (Suffolk Business Park extension).

Together with 8 hectares of land being allocated at Haverhill Research Park, Enterprise Zone (EZ) status had previously been awarded to 14 hectares of land at Suffolk Business Park.

Councillor Alaric Pugh, Portfolio Holder for Planning and Growth, drew relevant issues to the attention of Cabinet, including that significant progress had been made by the developer/promoter with regard to bringing forward the EZ at Suffolk Park, including making provision for the construction of a spine road and associated services.  The completion of this work would enable the developer/promoter to market the EZ as ‘fully serviced’, which would be a significant incentive for businesses to locate quickly to the site.

A large upfront cost would however, be required to enable the EZ to be serviced and whilst a proportion of the funding had been met through already secured land sales, a request for a loan had been received from the developer/promoter to bridge the temporary gap until further land sales came forward. 

It was noted that the request for a loan was only to enable the phase 1 spine road and services to be constructed/completed; however it was likely that further requests for funding towards upfront infrastructure costs would be received in the future to support the EZ and on the wider business park extension. 

The Cabinet therefore considered approval of a £4m revolving investment facility, subject to due diligence.  Members recognised the benefits of the proposal, which would enable funding decisions of up to that amount to be made (subject to appropriate checks and balances) on a quicker timeframe, thereby ultimately resulting in the faster occupation of the Enterprise Zone at Suffolk Park.

RESOLVED:

That:

(1)     a £4m revolving investment loan facility be agreed, as set out in Report No: CAB/SE/17/018, for infrastructure and associated works for Suffolk Park; and

(2)     subject to the satisfaction of the Section 151 and Monitoring Officers that appropriate security is in place to protect the Council’s investment and due diligence highlighting no significant risks to the Council has been completed, delegated authority be given to the Chief Executive in consultation with the Portfolio Holder for Planning and Growth to enter into a loan agreement(s) with the developer.