Decision details

It was agreed that Standing Orders be suspended to allow the Chief Executive to speak on the report and clarify any queries.

The Executive Leader, Councillor Alistair Bradley presented the confidential report of the Director (Business, Development and Growth).

The Council has sought external advice on the acquisition of the site and the risks have been fully explored. 

The Leader of the Opposition, Councillor Martin Boardman, raised a number of queries, including relating to the lease, the timing of the acquisition, the parent company guarantee and the valuation of the asset.  The lease will be guaranteed by the parent company and they have a very low risk rating.  The suggestion of a cross party working group be set up to consider the wholly owned company as part of the previous agenda item was noted as this asset will be held by the company.

The Executive Leader, Councillor Alistair Bradley proposed and the Deputy Leader, Councillor Peter Wilson seconded the Decision –

1.    To approve the purchase of the property for the sum set out in the report.

2.    To approve additional PWLB borrowing to fund the total purchase costs including stamp duty/land tax and fees.

3.    To agree to the lease back of the premises to the company named in the report for a term of 15 years with an initial rent as set out in the report.

4.    To note the establishment of a wholly owned commercial property management company, earlier on the agenda, which will operate hold the asset.

5.    To approve temporary increases to the council’s approved investment counterparty limits so that any potential surplus cash can be invested temporarily if required.

6.    To approve changes to the approved treasury management indicators that have resulted from the proposed large investment.