Decision details

To consider tenancy options.

The Cabinet:

1.1          Agreed and recommended to Full Council to agree the inclusion of the new ‘Buy Out’ clause outlined in the background section. The clause would involve the ‘Buy Out’ of Evolve Estates interest in the Joint Venture Limited Liability Partnership, two years after completion of the development. The clause is subject to confirmation from the Council’s legal team and independent valuer that the valuation approach is in line with Best Practice and the ‘price’ can be substantiated from a legal Best Value perspective.

1.1          Delegated authority to the Leader and Chief Executive in consultation with the Monitoring Officer and the Section 151 Officer to complete all contracts related to the Joint Venture Limited Liability Partnership subject to financial implications of all contracts being within Approved Budgets.

1.1          Agreed and recommended to Full Council to update the Medium-Term Financial Strategy:

i. To increase the budget in the Capital Programme by £3,999,000 to reflect the central scenario cost of the ‘buy out’ with funding initially based on the central scenario included in the financial implications section. The plan is for any borrowing need to be funded through internal borrowing.

ii. To continue the approach that the MTFS is based on a neutral (no surplus or deficit or capital receipts are included) budget position until more informed financial projections are provided through the Business Plan. Any future changes following receipt of the Business Plan will be reported in line with the Council’s budget monitoring and any budget approvals will be in line with the budget framework.

1.1          Overview and Scrutiny Committee continue to be involved in the scrutiny of key elements of policy development including the Business Plan and the most appropriate ownership model. This will enable Members to fully understand the strategic, operational, and financial implications of the Council becoming the sole owner of the cinema development and the impact on the MTFS.