Decision details

REPORT OF THE DEPUTY LEADER AND CABINET MEMBER FOR SUPPORTING BUSINESS AND OPPORTUNITIES

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The purpose of this report is to provide Cabinet with the update and outline of the most recent variation to the Ashwood Enterprise Zone (EZ) business case application from Advance Northumberland to the NELEP.

Decision:

RESOLVED that:-

 

(a )     Cabinet approve the additional loan funding of £2,537,977 to the NECA to fund the proposed improvement works to Ashwood Enterprise Zone bringing the total loan funding provided by the Council for the scheme to £6,018,254, subject to a separate funding agreement with NECA and Advance Northumberland (Commercial) Ltd or variation to the existing tripartite agreement dated 07 February 2020, which sets out a repayment schedule for the additional £2,537,977 million loan plus interest;

 

(b )     Cabinet approve delegated authority to the Executive Director for Place and Regeneration, in consultation with the s151 Officer to enter into either:

         a variation to the tripartite Funding Agreement (07.02.2020), or

         a new tripartite Funding Agreement, between the Council, Advance Northumberland (Commercial) Limited and NECA in respect of the Ashwood Business Park, Enterprise Zone Infrastructure works, such agreement to include the obligation for Advance Northumberland (Commercial) Limited to meet any potential shortfall in Business Rates;

 

(c )     Cabinet note the contents of the report, in particular the risks associated with the proposal and the measures proposed to mitigate the risk; and

 

(d )     Cabinet note that the proposed additional loan of £2,537,977 million is not included within the Council’s capital budget and agree that the Council’s approved 2024/25 capital budget is increased accordingly.

Publication date: 07/05/2024

Date of decision: 07/05/2024

Decided at meeting: 07/05/2024 - Cabinet

Effective from: 13/05/2024

Accompanying Documents: