Issue - meetings

To consider a proposal by the Economic Development Manager for the use of the retained element of a capital grant received from the Department for Communities and Local Government (DCLG) in 2014 as a loan facility and consider the proposed use of the income stream thus generated.

To approve the use of the £1,984,868 BFG underspend as a loan facility which complies with State Aid regulations.

To recommend Option 2 in paragraph 4.2 for the use of the revenue generated is followed as a budget proposal in the next budget round.

See note on Members interests, Minute No.10 ante refers, Councillors R Fuller, D Brown and Mrs A Dickinson left the room.

Consideration was given to a report by the Economic Development Manager, appended to which was the Urban & Civic Draft loan terms sheet (copies of which are appended in the Minute Book). The report detailed options for the use of the retained element of a Building Foundation for Growth (BFG) capital grant received from the Department for Communities and Local Government (DCLG) in 2014 as a loan facility and consider the proposed use of the income stream thus generated. It was agreed that the proposal provided an excellent use of the money given the restrictions imposed under the terms of the grant and that the capital investment into the Economic Zone was significant. Thereby it was

RESOLVED

a)  that the use of the £1,984,868  BFG underspend as a loan facility which complied with State Aid regulations be approved; and

b)  that Option 2 in Paragraph 4.2 of the report now submitted for the use of the revenue generated be approved as a budget proposal in the next budget round

Councillors R Fuller, D Brown and Mrs A Dickinson returned to the meeting.

A report on the proposed use of building foundations for growth (capital) grant underspend is to be presented to the Panel.

With the aid of a report by the Economic Development Manager (a copy of which is appended in the Minute Book) the Proposed Use of Building Foundations for Growth (Capital) Grant Underspend was presented to the Panel.

Members were informed that whilst there are four options listed within the report practically there are only two options. Option 1 which the Council will make loans available at the predetermined European Union (EU) commercial rates for capital projects on the Enterprise Zone and Option 4 of providing Grants to small and medium sized enterprise (SMEs) that meet certain State Aid complaint conditions. The Panel were informed that the preferred option is option 1. The Head of Development stated that there is also Option 5 which is to do nothing however this is not recommended by Officers.

In response to a question are the Council still seeking legal advice, Members were informed that once an option has been selected the Council will seek legal advice to ensure due diligence has been done.

Following a question in regards to what will happen with the money when the loans are paid back Members were informed that Option 4 would become attractive to encourage small businesses. The Panel suggested making the decision to use Option 4 for the proceeds now however it was explained that as the loans won’t be paid back for 10 years the need for a decision won’t be until then.

(At 7.42pm, during the discussion of this item, Councillor D Brown left the meeting and did not return.)