Agenda item

Minutes:

The Director of Economic and Commercial Growth introduced the report which sought approval of the draft Food Enterprise Zone (FEZ) delivery strategy to inform a business plan to secure a minimum of £1.5m grant funding from the GLLEP, including the approval of a commercial loan from WLDC to the master developer to deliver required enabling infra-structure.

 

Consent had been given by the Prosperous Communities Committee for the Local Development Order (LDO), and the Planning Committee had also been informed. The LDO defined the uses to which the land could be put. Work was ongoing with the four landowners, and interest was already being shown by a number of organisations and companies.

 

The Hemswell Cliff FEZ together with the FEZs at Holbeach and Europarc, formed the delivery mechanism to the GLLEP Agri-food Sector Plan and were key economic drivers in the GLLEP Strategic Economic Plan (SEP). The three FEZs would establish a triangular hub serving the key agri-food clusters in the Greater Lincolnshire area (arable crop sector and food processing in Central Lincolnshire, fish processing in the South Humber Bank and fresh produce at Holbeach).

 

The ‘A15 growth corridor’ physically linked all three FEZ areas and was thus important strategically in facilitating growth of the food chain across Greater Lincolnshire. On this basis the three FEZs were invited to submit a bid via the GLLEP for Single Local Growth Funding.

 

Officers had submitted an outline bid to the GLLEP last autumn seeking grant funds to deliver enabling infrastructure works for the site as identified in the Hemswell Cliff Local Development Order and Statement of Reasons. A total investment of £6.5m for all three FEZs had been secured from government as part of the GLLEP’s Growth Deal 3 submission. In order to allocate the grant to each FEZ the GLLEP had set up a Challenge Fund and had requested that the Local Authorities submit a business case to substantiate the funding gap requirements and provide assurance on delivery.

 

Note: Councillor Regis declared a non-pecuniary interest in the item as being an adjacent landowner, and noted that he would not take further part in the consideration of the item.

 

Note: Councillor Boles joined the meeting at 7pm.

 

Members asked a number of questions on the development of the wider area and how the project sat within the whole community. It was anticipated that the FEZ would create around 11,000 job in total which would benefit the surrounding area. Concerns were expressed regarding the road network and its safety. Consideration of the highways infrastructure was included within the scheme, but to make this a requirement would make the project unviable. The status of the FEZ would give weight to lobbying for improvements.

 

It was questioned whether housing in the vicinity would be appropriate in what would be an industrial area. Housing in the area was defined within the Central Lincolnshire Local Plan, with 180 homes across the road. It was necessary to consider an holistic approach and the wider picture of the whole area.

The report was welcomed and continued success hoped for. The recommendations were moved and seconded and on being voted upon it was:

 

RESOLVED that:

 

a)    the draft site delivery strategy outlined in the report to inform the production of the Business Plan/bid for submission to the Greater Lincolnshire Local Economic Partnership (GLLEP) to secure a minimum of £1.5 million of grant funding (from the Single Local Growth Fund Round 3), be approved;

 

b)    the Council’s role as accountable body for the grant funding of £1.5m expenditure through the Capital Programme be approved;

 

c)    expenditure of up to £1.5m from the Capital Programme budget for the Food Enterprise Zone for the purpose of issuing a commercial loan, subject to the Heads of Terms be approved; and

 

d) the Heads of Terms of the commercial loan of up to £1.5 million to the master developer (Hemswell Food Enterprise) to match fund the grant funding to deliver enabling infra-structure, be approved.