Issue - meetings

To consider a joint report by the Heads of Legal and Democratic Services and of Financial Services on a proposal relating to Huntingdon Gym.

Approved the granting of a loan to Huntingdon Gym on the terms set out in the report and a supplementary capital estimate for the loan with the revenue impact being met from the loan repayments, requested officers to instigate discussions with Huntingdon Town Council regarding the possibility of securing contingency arrangements to guarantee the loan and authorised the Head of Legal and Democratic Services to complete the necessary legal documentation.

With reference to a joint report by the Head of Legal and Democratic and Financial Services (a copy of which is appended in the Annex to the Minute Book) the Cabinet considered a request by Huntingdon Olympic Gymnastics Club for a loan to enable them to erect a second gymnasium.

The Executive Leader outlined the background to the request and gave a brief summary of the Club’s current financial position.  He explained that the Club had secured a grant towards part of the construction costs from British Gymnastics but would require further funding to meet the outstanding shortfall.

In discussing the risk associated with the request, Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Social Well-Being) on the matter.  In that respect and given the difficulty of securing a charge on the building because the freehold is owned by the Town Council, Executive Councillors concurred with the Panel that the Town Council should be approached to act as a guarantor for the loan. Having discussed the possibility of other funding streams including the Community Infrastructure Levy and in recognising the community benefit the proposal would have for the district, the Cabinet

RESOLVED

(a)  that a loan to Huntingdon Gym be approved on the terms set out in paragraph 3.3 of the report now submitted;

(b)  that a supplementary capital estimate for the loan be approved with the revenue impact being met from the loan repayments;

(c)  that Officers be requested to instigate discussions with Huntingdon Town Council with a view to them agreeing some form of guarantee on the loan; and

(d)  that the Head of Legal and Democratic Services be authorised to complete the necessary legal documentation.

To consider a proposal relating to Huntingdon Gym.

Members of the Overview and Scrutiny Panel (Economic Well-Being) have been invited to attend for discussion on this item.

20 Minutes.

(Councillor J D Ablewhite, Executive Leader of the Council, Councillors P G Mitchell, M F Shellens and A H Williams, Members of the Overview and Scrutiny Panel (Economic Well-Being), and Mr C Meadowcroft, Head of Legal and Democratic Services, were in attendance for consideration of this item).

By way of a joint report by the Heads of Legal and Democratic Services and of Financial Services (a copy of which is appended in the Annex to the Minute Book) the Panel gave consideration to a financial proposal relating to Huntingdon Olympic Gymnastics Club. In introducing the report, the Executive Leader outlined the background to the proposal and provided a brief summary of the Club’s current financial position together with its reasons for wishing to extend the existing gymnasium. An outline of the building’s leasehold arrangements with the Town Council was also provided.

The Panel discussed a number of matters including the funding options available to the Club, the risks associated with the proposal and the British Gymnastics Association’s future strategic plans. Members expressed some reservations over the proposals and made a number of suggestions to the Cabinet, which were intended to alleviate some of the concerns raised.

RESOLVED

(a)  that the proposal be supported in principle, and

(b)  that the Panel’s views be conveyed to the Cabinet.