The Cabinet resolved to:
(i) Approve the Be First Business Plan 2018/19 – 2022/23, at Appendix 1 to the report, subject to the appropriate legal construct for the DevCo trading vehicle Be First Developments Ltd being delegated in accordance with recommendation (ii) below;
(ii) Agree in principle to the formation of a trading vehicle ‘Be First Developments Ltd’ and to delegate authority to the Director of Law and Governance, in consultation with the Chief Operating Officer and the Cabinet Members for Finance, Growth and Investment and Economic and Social Development, to agree with Be First the appropriate legal construct and the terms of all the requisite legal documents and agreements (including a shareholder’s agreement);
(iii) Agree that the Council provides a state aid compliant facility of up to £100m of development funding, subject to it being within the agreed parameters of investment activity as outlined in paragraphs 3.18 and 3.19 of the report and subject to ensuring that adequate security is provided for the funding;
(iv) Delegate authority to the Chief Operating Officer, advised by the Investment Panel, to:
a) agree the appropriate source(s) of funding for each individual approved development proposal;
b) approve the draw-down of development funding from the £100m facility subject to:
(i) a positive recommendation to proceed with each individual development proposal by the Investment Panel; and
(ii) that the funding for the facility, any drawn downs and borrowing costs are provided for in the Council’s Medium Term Financial Strategy and the Chief Operating Officer is satisfied that the funding is in line with statutory guidance on local authority investments and is state aid compliant.
c) agree, in consultation with the Director of Law and Governance:
(i) the terms and form of such legal agreements (as are necessary) to give effect to the £100m development facility and to enter into such agreements on behalf of the Council;
(ii) the terms and form of legal agreements to give effect to the draw-downs as referred to above, including instruments providing security to the Council, and to enter into such agreements or security documents on behalf of the Council.
(v) Approve the allocation of an additional £700,000 funding to Be First, to be made available in the form of an extension of the Working Capital Facility agreement, subject to the Chief Operating Officer being satisfied that it is financially prudent to do so;
(vi) Delegate authority to the Chief Operating Officer, in consultation with the Director of Law and Governance, to approve the entering into (by Be First or the Council) of any agreement or commitments required to enable the delivery of the Council’s capital programme as commissioned subject to:
a) compliance with relevant procurement and state aid law;
b) being satisfied as to the appropriate terms and financial implications;
c) being satisfied that the terms of such agreements or commitments would not cause the Council to be in breach of its Constitution.
(vii) Delegate authority to the Chief Operating Officer, in consultation with the Director of Law and Governance, to approve the entering into (by Be First or the Council) of any agreement or commitments required to enable the delivery of any approved schemes within the Council’s Investment and Acquisition programme subject to:
a) the endorsement of the Council’s Investment Panel;
b) compliance with relevant procurement and state aid law;
c) being satisfied as to the appropriate terms and financial implications;
d) being satisfied that the terms of such agreements or commitments would not cause the Council to be in breach of its Constitution.