Cabinet Member: Councillor Evans (Council Leader)

The City Council will be asked to agree that, subject to a favourable outcome to both the European Regional Development Fund and the Growing Places Fund applications, the council acts as guarantor for Ocean Studios Community Interest Company (CIC) for repayment of the balance of the Trust’s loan from the LEP outstanding to a maximum of £794,000 on the terms set out in the Cabinet report, with authority to agree the Heads of Terms to be delegated to the Director for Place.  Approval will also be sought for a capital contribution of £794,000 from the Investment Fund. 

The minute of Cabinet held on 6 August 2013 will be submitted together with the report considered at Cabinet.

Councillor Evans (Council Leader) presented the Cabinet recommendation on the new Enterprise Units at Oceans Studios (Cabinet minute 25 referred) and updated the council on the figures, amending the figure of £794,000 to £802,655 due to the withdrawal of some anticipated funding.

Councillor Jarvis seconded the proposal.

Following a debate, Councillor Evans indicated that officers would take action to mitigate the risks and offered a briefing to Councillor Darcy if he so wished.

Following a vote, subject to a favourable outcome to both the European Regional Development Fund and Growing Places Fund applications, Agreed that the council -

The Director for Place will submit a written report on the Ocean Studios development which is a £4.06 million building project which could unlock £3.27 million public funding to create 1,900 square metres of affordable artists’ studios. The report will explain how the delivery of the project is facilitated by a capital contribution of £794,000 from the City Council’s Investment Fund. In addition, it is proposed that the council acts as guarantor to a loan of similar value and the report will explain how the potential financial impact of this enabling role will be mitigated.

Anthony Payne (Director for Place) submitted a written report on the Ocean Studios development at the Royal William Yard, which was a £4.06 million building project which could unlock £3.27 million public funding to create 1,900 square metres of affordable artists’ studios.

The report indicated how the delivery of the project would be facilitated by a capital contribution of £794,000 from the City Council’s Investment Fund and how the potential financial impact of the council acting as guarantor to a loan of similar value would be mitigated.

Councillor Evans (Council Leader) introduced the proposals and advised Cabinet Members that the council would be liable for any outstanding payments at the end of the 10 year loan period.

Patrick Bowes (Urban Enterprise Project Manager) also reported on the proposals.

Alternative options considered and reasons for the decision –

As set out in the report.

Agreed that subject to a favourable outcome to both the European Regional Development Fund and the Growing Places Fund applications and the approval of the City Council, the council agrees -