Decision Maker: Cabinet, Council
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: Yes
To update on the funding position of the
scheme and to consider the acquisition of investment opportunities
within the scheme
RESOLVED that Cabinet:-
(a) approves the request for up to a further £7.6MAdditional Council Finance less the Site Lease Value. The Site Lease Value will be calculated once the construction procurement process is complete and the terms of the Third Party Finance have been settled. It is anticipated this will be around Q1 2021;
(b) approves the MTFP to be updated in 2021/22 to include £304k per annum (plus interest) for the Minimum Revenue Provision (MRP) associated with this Additional Council Finance;
(c) the purchase of the Private Rented Sector (PRS) and Car Park elements of the Winter Gardens Scheme, from the Bournemouth Development Company LLP, on the terms detailed in the confidential part of the report;
(d) authorises the Corporate Property Officer in consultation with the Monitoring Officer to agree the detailed [contract provisions];
(e) approves the grant of a 50-year lease of the PRS elements to Seascape Homes and Property Limited on terms to be agreed by the Corporate Property Officer in consultation with the Monitoring Officer; and
(f) approves the MTFP to be updated in 2021/22 for the net loss of income relating to the redevelopment of the Winter Gardens car park totalling £743,200.
RECOMMENDED that Council:-
(a) amend the Capital Programme to include Additional Council Finance up to £7.6M less the Site Lease Value anticipated to be drawdown in 2021/22. [It would be prudent to assume the Additional Council Finance will be £7.6M];
(b) amend the Capital Programme to include provision for these acquisitions to be funded by prudential borrowing, which is subject to RPI as detailed in the confidential part of this report; and
(c) authorise the Section 151 Officer in consultation with the Portfolio Holder for Finance to determine the detailed funding arrangements for both the forward purchase of the PRS and Public Car Park and the Additional Council Finance.
Portfolio Holder: Regeneration and Culture
To enable this exciting and reputationally important mixed-use regeneration scheme to go ahead, helping to deliver high quality homes, and increased footfall in Bournemouth Town Centre.
To contribute to the Council’s Corporate vision, specifically helping to create dynamic places, investing in the homes our communities need and revitalising and re-inventing our high streets and local centres.
The proposals in addition to delivering regenerative benefits are in accordance with the Capital Investment Strategy (Non-Treasury) 2020-2025 (CIS) objectives and criteria adopted by Cabinet on 18 March 2020 and take note of the HM Treasury consultation document; Public Works Loan Board: future lending terms dated March 2020.
Report author: Sarah Longthorpe, Martin Tiffin
Publication date: 29/05/2020
Date of decision: 27/05/2020
Decided at meeting: 27/05/2020 - Cabinet
Effective from: 06/06/2020