Agenda item

Report No: COU/SE/15/033 TO FOLLOW

Council considered Report No: COU/SE/15/033, which provided an update on the Eastern Relief Road and Suffolk Business Park project, and sought approval for recommendations to enable the project to progress.

The report provided background to the development of the Suffolk Business Park and how the construction of the Eastern Relief Road (ERR) would link Moreton Hall/Suffolk Business Park to the A14, thus opening up 68 hectares of employment land; land for 500 homes; a secondary school site; leisure and community opportunities; and motorist facilities associated with the A14.  Over a 20 to 25 year period, the employment land had the potential to generate 14,000 jobs and approximately £275 million worth of inward investment into West Suffolk.

Council had previously approved:

(a)     a commitment of up to £3 million investment of Growth Area Initiatives Funding that had originally been allocated from Central Government, towards the construction of the road;

(b)     an allocation of £4.6 million to provide a loan agreement for electricity infrastructure; and

(c)     delegated authority to officers to enter into a development agreement(s) with the adjacent landowners to bring forward Suffolk Business Park in order to realise a return on the investment, which was in accordance with the principles of the Medium Term Financial Strategy.

Running in parallel to the above, approval had also previously been given to committing to Compulsorily Purchasing a parcel of land, if needed, to guarantee delivery of the required land for the ERR.  The Compulsory Purchase Order was considered to be complementary action that was assisting, and would continue to assist, in bringing the ERR and Suffolk Business Park forward, and provided reassurance for funders that the development would go ahead. 

Members noted that as a result of due diligence, it was now clear that there were significant for issues for St Edmundsbury Borough Council (SEBC) in relation to the long term financial investment of £3 million into the construction of the road.  Council was therefore now asked to consider making a grant contribution to the ERR and the report provided the justification for this.

Section 3 of the report then provided reasons for seeking authority for officers to enter into an agreement(s) which would be to reflect the legal and commercial realities of the project, and to share in the uplift of any profits generated by the business park long into the future.

Members also noted that the previously approved loan allocation of up to £4.6 million to Taylor Wimpey for electricity infrastructure had been secured against land which Taylor Wimpey was unable to comply with.  Subsequently, Taylor Wimpey had entered into a contract to provide the required electricity infrastructure using its own funds, which meant that SEBC was not now exposed to risks regarding the repayment of the loan.

A discussion was held on the external legal and technical advice received, with particular reference to the legal reasons for granting the £3million Growth Area Initiatives funding towards the ERR. 

Emphasis was placed on the Council’s continued commitment to bringing this project to fruition and the extensive benefits for St Edmundsbury, West Suffolk and beyond.

On the motion of Councillor John Griffiths, seconded by Councillor Alaric Pugh, and duly carried it was

RESOLVED: That

(1)     £3 million towards the construction cost of the Eastern Relief Road, as detailed in Section 2 of Report No: COU/SE/15/033, be granted; and

(2)     subject to the satisfaction of the Section 151 and Monitoring Officers, delegated authority be given to the Head of Planning and Growth, in consultation with the Leader of the Council, to enter into an agreement (or agreements) with; the landowners and Highway Authorities to enable the construction of the Eastern Relief Road; and relevant landowners to enable the development of Suffolk Business Park.  Such delegations to include agreements in relation to such Council owned land and any land acquisition as necessary so that it secures the optimum benefit and return.