Cabinet Member for Regeneration

Cabinet considered the report of the Regeneration Director and above Cabinet Member.

The Corporate Services Director reported that recommendation (3) needed to be amended to read: “To proceed with the recommendation to Council that borrowing for some or all of this investment should be authorised.”  This was agreed by Members.

Members discussed the report and raised points which included the: proposal was full of risks; only owning 30% would not allow the Council ‘leverage’; concern that the proposal was being considered in closed session and only by Cabinet Members; and should not consider the proposals until GVA had provided further information, particularly in relation to tenant type.

In response to concerns the Head of Finance stated that he was happy to support the proposal.

The Leader stated that he would be happy to receive and respond to Councillor Bonney’s specific issues and concerns given her acknowledged expertise in the field.

RESOLVED:

(1) That subject to satisfactory negotiations and structural survey, the Council proceeds with purchasing a 30% share in the Forum Shopping Centre, Sittingbourne together with the adjoining 97 space car park for a maximum investment of £3.5m be agreed.

(2) That the Director of Regeneration, in consultation with the Leader, the Cabinet Member for Regeneration, the Head of Finance and the Head of Legal Partnership, be delegated authority to agree the final purchase price and to set-up a Joint Venture Company with Development Securities Plc to carry out the investment.

(3) That the recommendation to Council that borrowing for some or all of this investment should be authorised to proceed.

(4) That the Head of Finance, in consultation with the Leader and the Cabinet Member for Finance, be given delegated authority to enter into the appropriate borrowing arrangements through the Public Works Loan Board to fund the investment in accordance with the Council decision of 18 February 2015.