Meeting Details

Meeting Summary
Revolving Investment Fund Committee
18 Oct 2016 - 18:00 to 21:00
Occurred
  • Documents
  • Attendance
  • Visitors
  • Declarations of Interests

Documents

Agenda

Part A
1 Welcome and Announcements

a)     The Chairman to welcome members of the public and Councillors and to remind all speakers of the requirement for microphones to be used at all times.

(b)     At the Chairman's discretion, to announce information on:

  • action in the event of an emergency;
  • mobile phones switched to silent;
  • the audio-recording of meetings;
  • location of toilets;
  • introduction of members of the meeting.
2 Substitutions

Members may arrange for a substitute councillor to attend a meeting on their behalf, subject to prior notice being given. The attendance of substitute councillors must be recorded.

3 Urgent Items

To announce any items not on the agenda which the Chairman has agreed to consider because they are urgent, to give reasons for the urgency and to indicate where in the order of business the item will be considered.

4 Declarations of Interest

The Chairman to invite Councillors to declare individually any interests they may have in the items on the agenda. Councillors should consult Meetings General Procedure Rule 7 for full guidance on the registration and declaration of interests. However Councillors may wish to note the following:- 

  • Where a Councillor has a disclosable pecuniary interest, other pecuniary interest or a non-pecuniary interest in any business of the authority and he/she is present at a meeting of the authority at which the business is considered, the Councillor must disclose to that meeting the existence and nature of that interest, whether or not such interest is registered on his/her register of Interests or if he/she has made a pending notification.  
     
  • If a Councillor has a disclosable pecuniary interest in a matter being considered at a meeting, he/she must not participate in any discussion or vote on the matter at the meeting. The Councillor must withdraw from the room where the meeting is being held unless he/she has received a dispensation from the Monitoring Officer.
     
  • Where a Councillor has another pecuniary interest in a matter being considered at a meeting and where the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the Councillor’s judgement of the public interest, the Councillor must disclose the existence and nature of the interest and withdraw from the room where the meeting is being held unless he/she has received a dispensation from the Monitoring Officer.
     
  • Failure to comply with the arrangements regarding disclosable pecuniary interests without reasonable excuse is a criminal offence, with a penalty of up to £5,000 and disqualification from office for up to 5 years.
5 Minutes
To confirm as a correct record the minutes of the meeting held on 10 August 2016.
50
RESOLVED that the minutes of the meeting held on 10 August 2016 be confirmed as a correct record.
6 Have Your Say!
a) The Chairman to invite members of the public to indicate if they wish to speak or present a petition at this meeting – either on an item on the agenda or on a general matter relating to the terms of reference of the Committee/Panel not on this agenda. You should indicate your wish to speak at this point if your name has not been noted by Council staff.

(b) The Chairman to invite contributions from members of the public who wish to Have Your Say! on a general matter relating to the terms of reference of the Committee/Panel not on this agenda.
See report by the Assistant Chief Executive
51
The Assistant Chief Executive submitted a report a copy of which had been circulated to each Member.  

Steve Heath, Finance Manager, attended and presented the report to the Committee. The position on the revenue and forecast expenditure for the Revolving Investment Fund (RIF) were highlighted. Whilst the detailed summary of the RIF was set out in the not for publication Appendix C, in broad terms the latest  forecast of expenditure, capital receipts  and revenue contributions  showed a deficit of £3.6m in 2018/19, which was a considerable increase compared to the position reported to the Committee in March 2016. This would fall to a more manageable shortfall of £81k by the end of 2020/21.  This may give rise to a short term borrowing requirement in the intervening period, which could be met by internal borrowing.

The Committee noted the latest position and thanked officers.  The financial position of the RIF reflected the enterprising approach of the administration and the scale of its ambition for the next 3-4 years.  

RESOLVED that the latest financial position for the Revolving Investment Fund be noted.

REASONS

Cabinet agreed to create the RIF as a way to recycle capital receipts into profitable high income producing development schemes and regeneration / economic growth projects. This report sets out the updated financial position of the RIF and proposes allocations of funding to specific projects. 

ALTERNATIVE OPTIONS

It would be possible to consider different allocations to projects. However, the proposals in this report represent a considered view of the cost to deliver a number of projects and income budget targets. 
 
See report by the Assistant Chief Executive
52
The Assistant Chief Executive submitted a report a copy of which had been circulated to each Member. 

Howard Davies, Regeneration Project Manager, presented the report to the Committee.  

In respect of the options set out at paragraph 5.1 of the Assistant Chief Executive’s report, it was the view of the Committee that a more flexible approach should be taken.  It was too early to take a conclusive view of the approach that should be taken to the long term future of the development. It would be more sensible to take such a decision at a later stage taking into account the market conditions at the time and the impact of other developments in the area, such as the Curzon cinema and Primark.  It was also suggested that it would be sensible to consult the Trading Board on the long term approach.  

Officers highlighted that if the approach was to sell some or all of the units then it was important to get these on the market at an early stage.  The Committee stressed that it would rely on officer’s advice on the most appropriate time to take a decision on the long term future and anticipated it would be taken no later than twelve months after development commenced. 

RESOLVED that:- 

(a) The progress to date on the project to redevelop 5-6 St Nicholas Street (Jacks) be noted. 

(b) The additional scheme cost of £126,600 which has resulted from further detailed design work for the planning application be agreed.

(c) Further consideration to be given to the options set out at paragraph 5.1 of the report, or a combination of these options, for the long term future of the asset once development was complete, with a decision to be taken no later than twelve months after development commences. 

REASONS

The RIF was established to recycle capital receipts into projects that could deliver against a number of Council objectives. The RIF can be used to support wider economic growth targets and deliver infrastructure supporting regeneration but its principle function is to recycle capital funds from the sale of assets for investment into income producing opportunities which can in turn support provision of frontline Council services. This proposal delivers on a number of these objectives by, restoring a historic building in a key part of the town centre to deliver economic growth, creating new town centre living opportunities and providing a return through a robust investment case. 

At the February 2016 meeting of the RIF, funding was approved for the redevelopment of Jacks and it was agreed that the delivery mechanism for the residential units would be subject to a further report to the RIF.  The report sets out the recommended delivery mechanism.

ALTERNATIVE OPTIONS

Funding for the redevelopment of 5-6 St Nicholas Street was approved by the RIF on 1 February 2016, and the Assistant Chief Executive’s report outlines a number of ways for the delivery of the residential units to be managed. The only alternative option to redevelopment is to leave the building in its existing state with the current temporary tenant on the ground floor and vacant space on the upper floors.  Given the age and general condition of the building it is not recommended that this option is pursued as costs of maintenance and repair will increase. Structural surveys of the building undertaken as part of the project has resulted in temporary props being required to ensure the stability of the building, therefore if the building is not redeveloped there will be an immediate need to provide a permanent solution to the existing structural deficiencies.

The building could be sold in the open market. It is unlikely that a private developer would carry out works to the existing building, as proposed by the Council. It is more likely the developer would request that the building be demolished and a completely new development take place. This would result in the loss of this popular building in Colchester. The building is not listed and protection would be unlikely.
 
9 Exclusion of the Public (Cabinet)
In accordance with Section 100A(4) of the Local Government Act 1972 and in accordance with The Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 to exclude the public, including the press, from the meeting so that any items containing exempt information (for example personal, financial or legal advice), in Part B of this agenda (printed on yellow paper) can be decided. (Exempt information is defined in Section 100I and Schedule 12A of the Local Government Act 1972).
Publication and Call in Arrangements

Date Published 19 October 2016

Date when decisions may be implemented (unless ‘called in’) 5pm 26 October 2016 NB All decisions except urgent decisions and those recommended to Council may be subject to the Call-in Procedure.  

Requests for the scrutiny of relevant decisions by the Scrutiny Panel must be signed by at least ONE Councillor AND FOUR other Councillors to countersign the call-in form OR to indicate support by e-mail.  All such requests must be delivered to the Proper Officer by no later than 5pm on 26 October 2016

Election of Chairman for the Meeting
49
RESOLVED that Councillor Smith be elected Chairman for the meeting.
Part B

The following minute contains exempt information (financial/business affairs of a particular person, including the authority holding the information) as defined in paragraph 3 of part 1 of Schedule 12A to the Local Government Act 1972.

To approve the not for publication extract from the minutes of the meeting held on 10 August 2016

53
The Committee resolved under Section 100A(4) of the Local Government Act 1972 and in accordance with the Local Authorities (Executive Arrangements)(Meetings and Access to Information)(England) Regulations 2012 to exclude the public from the meeting for the following items as they involved the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.

RESOLVED that the not for publication extract from the minutes of the meeting held on 10 August 2016 be confirmed as a correct record.
10-08-16 not for publication extract
  • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).
See Appendices A and C to the Assistant Chief Executive's report.
  1. RIF finance summary - appendices A and C
    • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).
54
The Committee resolved under Section 100A(4) of the Local Government Act 1972 and in accordance with the Local Authorities (Executive Arrangements)(Meetings and Access to Information)(England) Regulations 2012 to exclude the public from the meeting for the following items as they involved the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.

This minute is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (information relating to the financial or business affairs of any particular person (including the authority holding that information)).

The following report contains exempt information (financial/business affairs of a particular person, including the authority holding the information) as defined in paragraph 3 of part 1 of Schedule 12A to the Local Government Act 1972.

See report by the Assistant Chief Executive

  1. Redevelopment of 5-6 St Nicholas Street - not for publication
    • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).
55
The Committee resolved under Section 100A(4) of the Local Government Act 1972 and in accordance with the Local Authorities (Executive Arrangements)(Meetings and Access to Information)(England) Regulations 2012 to exclude the public from the meeting for the following items as they involved the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.

This minute is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (information relating to the financial or business affairs of any particular person (including the authority holding that information)).
 

Additional Meeting Documents

  1. 18-10-16 not for publication extract
    • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).

Attendance

Attended - Committee Members
Attended - Other Members
Name
No other member attendance information has been recorded for the meeting.
Apologies
NameReason for Sending ApologySubstituted By
Councillor Mark Cory  
Councillor Tim Young Councillor Michael Lilley
Absent
NameReason for AbsenceSubstituted By
No absentee information has been recorded for the meeting.

Declarations of Interests

Member NameItem Ref.DetailsNature of DeclarationAction
No declarations of interest have been entered for this meeting.

Visitors

Visitor Information is not yet available for this meeting