Issue - meetings

Appendices 1 and 2 to the report are exempt from publication as they contain commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

Further to Minute 33(viii) (20 October 2020), the Cabinet Member for Regeneration and Economic Development presented a report on a proposal to increase the development loan being provided to Robyna UK Ltd to facilitate the development of the former White Horse site and adjacent bus stand at London Road / North Street, Barking.

The Cabinet Member explained that since the development loan of up to £44m was agreed in October 2020, which represented approximately 80% of the total development cost, building cost inflation had increased the total projected development cost from £56m to £67.4m for the 196-unit scheme.  The total development loan sought was now a maximum of £52m, with the additional £8m being on the same general terms as previously approved but at a higher fixed interest rate and enhanced non-utilisation fee to reflect the Council’s additional costs of borrowing in the current economic climate.

Cabinet resolved to:

(i)  Approve the extension of the development loan to Robyna Limited in respect of the London Road / North Street development from £44m to £52m on the terms set out in Appendix 1 to the report in light of the recent significant increase in building cost inflation;

(ii)  Delegate authority to the Strategic Director, Inclusive Growth, in consultation with the Cabinet Member for Regeneration and Economic Development, the Strategic Director, Finance and Investment and the Chief Legal Officer, to agree the documents to fully implement and effect the proposals set out in the report; and

(iii)  Authorise the Chief Legal Officer, or an authorised delegate on her behalf, to execute all the legal agreements, contracts and other documents on behalf of the Council.