Issue - meetings

Members received a report from the Director of Corporate Services which sought decision from Members as to whether the Council should enter into a share purchase agreement or whether the Council should issue notice of intention to wind up the company, in respect of Market Street Renewal.

In presenting the report the Director highlighted to Members the background to the decision, the economic climate both when the Joint Venture was established and now, the binary nature of the decision to be made and the strategic alignment and options analysis.

Whilst each option was discussed, Members were in agreement that the Council’s long-term investment in the area, and demonstrating investor confidence was of paramount importance and as such Option 1 was duly moved and seconded.

Noting the binary decision options were being driven by content of the Deadlock Provision and Exit Clauses within the Agreement, Members sought indication as to whether such provisions and clauses would be managed / drafted differently if the Council was to enter a similar arrangement in the future.

In responding, Officers advised that the nature of the agreement was typical for its time, but some details would be different if the Council entered a  further share agreement in the future.  Ultimately there was a general agreement that it had delivered it objectives, in regenerating a gate way, and Option 1 would ensure the Council could continue that commitment.

Noting issues in the national news, Officers further confirmed that full surveys and evaluations had been undertaken.  Both the construction integrity and valuations given were considered sound.

On that basis it was RESOLVED that Option 1 be approved namely that:-

(a)    the Section 151 Officer, following consultation with then Chair of Corporate Policy and Resources Committee, be authorised to enter into a share purchase agreement for the remaining 50% share of the company at a cost of £310,000 plus professional fees to be funded from the Growth reserve; and

(b)    a business plan be bought to the Corporate Policy and

        Resources Committee no later than December 2023 setting out the financial forecasts and any revised operational and governance arrangements required, for approval, where necessary.