Issue - meetings

The Cabinet Member for Regeneration and Economic Development introduced a report on the proposed terms of loan funding to support the fit-out of two Council-owned properties at Axe Street, Barking, and Roycraft House, Linton Road, Barking.

By Minutes 12 and 15 (4 August 2014) and 38 (21 September 2021), the Cabinet had agreed arrangements to lease the properties at Axe Street and Roycraft House to Care City Innovation Community Interest Company (CIC) and Make It Group respectively.  The premises would provide valuable social, business and community benefits to residents of the Borough at no direct cost to the Council.  The Cabinet Member advised that in view of the significant increase in the cost of materials, labour etc., the cost of fully fitting-out both premises now exceeded the original modelling and the Council had been approached to provide loans, on commercial terms, to support the works.

Cabinet resolved to:

(i)  Approve a loan of up to £440,000 (plus rolled up interest) to Care City Innovation CIC to help fund the fit-out of Council-owned premises at Axe Street, Barking, to be leased by Care City, on the terms set out in paragraph 2.1 of the report;

(ii)  Approve a loan of up to £250,000 (plus rolled up interest) to Make it Bow Limited (part of the Make it Group) to help fund the fit-out of Council-owned premises at Roycraft House, Linton Road, Barking, leased to Make it Bow, on the terms set out in paragraph 2.2 of the report; and

(iii)  Delegate authority to the Strategic Director, Inclusive Growth, in consultation with the Cabinet Member for Regeneration and Economic Development, the Director of Finance and Investments and the Chief Legal Officer, to agree and enter into any agreements and other documents to fully implement and effect the proposals set out in the report.