Issue - decisions

RESOLVED that:-

(a)         the request for up to a further £950,000 by way of a subordinated secured loan (“Additional Council Finance”) for the Durley Road Scheme be approved;

(b)         the grant of the Lease of Durley Road to the relevant development subsidiary of BDC for a Site Lease Value of a minimum of £250,000 in return for a loan note issued in a sum equal to the Site Lease Value be approved;

(c)         the change to the “Option Execute Date” to be within 3 years after the date of planning consent be agreed;

(d)         an update to the MTFP in 2021/22 to include £48,000 per annum (plus interest) for the Minimum Revenue Provision (MRP) associated with recommendations a and b be approved;

(e)         BDC be approved to enter into the required contracts for the development;

(f)          the Corporate Property Officer be authorised in consultation with the Council’s Section 151 and Monitoring Officer to agree the detailed provisions of the legal documentation, including and not limited to the lease and the loan agreements;

(g)         the Section 151 Officer be authorised in consultation with the Portfolio Holder for Finance to determine and agree with BDC the terms of the Additional Council Finance;

(h)         an update to the MTFP be approved in 2021/22 for the net loss £42,800 of car park income arising out of the redevelopment of Durley Road; and

(i)           an amendment to the Capital Programme be approved to include the provision of Additional Council Finance in a sum of up to £950,000.

Voting: Unanimous

Portfolio Holder: Regeneration and Culture

Reason

To enable this residential-led 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 take note of the HM Treasury consultation document; Public Works Loan Board: future lending terms dated March 2020.