That Cabinet
1. Notes that Appendix 1 is not for publication on the basis that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information) as set out in paragraph 3 of Schedule 12A of the Local Government Act 1972 (as amended).
2. Approves an additional £5,114,000 to the council’s capital budget giving a total capital budget of £72,622,000 for the construction of 132 residential units, Adult Learning Centre, Nursery and associated professional fees and development management costs.
3. Approves a further capital budget of £1,750,000 to be funded by section 106 contributions for the Council’s additional contribution to the Youth Facility giving a total contribution of £5,250,000 subject to receipt by the Council of the section 106 contributions.
4. Agrees that the Council enters into a funding agreement and agreement for lease with OnSide Youth Zones and any subsidiary company, which are required to facilitate the development of the Youth Zone and Education City subject to receipt of satisfactory state aid advice.
5. Delegates authority to the Strategic Director for the Economy, in consultation with the Cabinet Member for the Economy and the Arts and the Head of Law, to finalise and complete negotiations with OnSide Youth Zone and any subsidiary company in order to give effect to the decision in 3 above.
6. Notes the proposed changes to the master development agreement required in order to facilitate the development moving forward.
7. Notes the proposed the change of residential tenure of 61 private rented units to 61 Shared Ownership units, subject to any necessary planning approval.
That Cabinet recommends to Full Council
1. That the Council approves a loan of up to £35 million to Ark for the construction of the office block at Education City, based on the heads of terms attached at confidential appendix 1, subject to receipt of satisfactory legal and financial advice, and state aid advice
2. To approve a capital budget of £35m be added to the capital programme to fund the loan to Ark.