Agenda item

Members considered the confidential report of the Executive Director that gave details of a potential commercial property opportunity.  The Property Investment Panel (PIP) had met on 28 July 2020 to consider the outcome of a competitive process to keep a private sector business in Rother.  It was confirmed that the Council had secured retaining the business in the District of Rother dependent on Rother District Council (RDC) acting as the funder to a relocation scheme and eventual landlord.  Appendix A to the confidential report set out the papers considered by the PIP. 

The report gave details of the total expected spend on developing an alternative business location and the expected gross rental income.  On completion, the scheme would see an increase in overall income for RDC and improve the long-term sustainability of RDC. RDC were only required to provide funding for the project, as part of a development funding agreement and would not need to procure, or commission any contracts or services beyond advisory services required to protect RDC’s interests throughout the development.

The business was seeking to complete the relocation by June 2023 and therefore required RDC’s commitment to the project as a matter of urgency.  

RECOMMENDED: That

1)         a budget of £46m for the development of a new location for the business, be funded through borrowing; and

2)         the project be added to the Council’s Capital Programme and be published once commercial contracts between the parties had been agreed.

AND

*RESOLVED: That delegated authority be granted to the Executive Director to:

1)         acquire the necessary land at the new location, as indicated in Confidential Appendix A;

2)         agree a development funding agreement with the appropriate companies for the construction of the new business premises, at this site;

3)         agree the terms of a lease with the business;

4)         appoint consultant advisors for specific services, such as legal, project management, and commercial advice; and

5)         agree and enter into other contracts as necessary to ensure the completion of the project.

*The RESOLVED parts of this minute are subject to the call-in procedure under Rule 16 of the Overview and Scrutiny Procedure Rules.

(This matter was considered exempt from publication by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972, as amended).

(Councillor Bayliss declared personal and prejudicial interest in this matter as a family member was employed by the business and in accordance with the Members’ Code of Conduct left the remote meeting room during the consideration thereof).

(Councillor Dixon declared a personal interest in this matter as the Council’s appointed representative to an interested party and in accordance with the Members’ Code of Conduct remained in the remote meeting room during the consideration thereof).