Issue - meetings

Report No: CAB/JT/19/007

Portfolio Holder: SEBC Cllr Susan Glossop

Lead Officer: Andrea Mayley

RESOLVED:

That:-

1.           The business case to support a £7m loan, as set out in Report No: CAB/JT/19/007, for the development of business centres and associated works by way of loan(s) for Haverhill Research Parkand Suffolk Park (Enterprise Zone) Bury St Edmunds be agreed.

RECOMMENDED TO SEBC COUNCIL: (19 March 2019)

That:-

2.           A £7m investment facility for the development of business centres and associated works by way of loan(s) for Haverhill Research Park and Suffolk Park (Enterprise Zone) Bury St Edmunds be approved.

3.           Subject to the satisfaction of the Section 151 Officer and the Monitoring Officer 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 SEBC Portfolio Holder for Planning and Growth to enter into a loan agreement(s) with the developer. 

4.           The Council’s Section 151 Officer to make the necessary changes to the Council’s prudential indicators as a result of recommendation 2. above.

(Report No: CAB/JT/19/007)

The Joint Executive (Cabinet) Committee received this report which sought support for a loan of up to £7m towards costs that would support growth on the Enterprise Zones at Haverhill Research Park and Suffolk Business Park, Bury St Edmunds.

The commercial loan to the developer had potential benefit to the local economy.  This loan would provide the match funding to go with the grant applications that had been made by the developer to the Local Enterprise Partnership and Greater Cambridgeshire and Greater Peterborough Combined Authority for the capital cost of building both centres.  The result of this was to make the delivery of both or either centre more likely and, therefore, to enable West Suffolk to benefit from much needed start-up space for new and growing enterprises.

Any loan from this facility would be arranged at a commercial interest rate and would generate an annual income for SEBC Council.  Any lending would be subject to the strict criteria in the Loans Policy and this included ensuring that due diligence had been undertaken and the repayment of the loan was sufficiently secured to the right value.  The risks associated with this proposal were, therefore, low.

RESOLVED:

That:-

1.           The business case to support a £7m loan, as set out in Report No: CAB/JT/19/007, for the development of business centres and associated works by way of loan(s) for Haverhill Research Parkand Suffolk Park (Enterprise Zone) Bury St Edmunds be agreed.

and

RECOMMENDED TO SEBC COUNCIL: (19 March 2019)

That:-

2.           A £7m investment facility for the development of business centres and associated works by way of loan(s) for Haverhill Research Park and Suffolk Park (Enterprise Zone) Bury St Edmunds be approved.

3.           Subject to the satisfaction of the Section 151 Officer and the Monitoring Officer 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 SEBC Portfolio Holder for Planning and Growth to enter into a loan agreement(s) with the developer. 

4.           The Council’s Section 151 Officer to make the necessary changes to the Council’s prudential indicators as a result of recommendation 2. above.