Purpose

To continue to support further investment (if
necessary, from the Council) for the delivery of the Somer Valley
Enterprise Zone scheme.

Decision

(1) 
To reaffirm the commitment to promoting the Somer Valley Enterprise
Zone (SVEZ) scheme, notwithstanding the Council’s recognition
of potential viability concerns with the project.
 
(2) 
If the SVEZ scheme proceeds, to acknowledge that up to £53m
may need to be secured from various means to ensure the delivery of
the project, including potential further investment from the
Council, other public funding sources, public loans and developer
partnership.

Reasons for the decision

The affirmation of the Council’s
commitment to deliver the scheme is necessary due to current
evolving advice on the viability deficit, which is revisiting the
viability scenarios and assumptions underpinning the
scheme.  The delivery of the SVEZ is
identified as a corporate priority in the B&NES Economic
Strategy (2014-2030).  The SVEZ will
provide economic, environmental and social benefits to the
area.

Alternative options considered

1) 
Do nothing –
without continued support for further investment and based on the
viability position as currently assessed, there is a considerable
risk to securing the Compulsory Purchase Order (CPO). If the CPO is
not secured, the scheme will not come forward. Support for further
investment is therefore critical to the delivery of the scheme, in
parallel with exploring other options for resolving potential
viability concerns.
 
2) 
Delay – the
Council could delay promoting the CPO until there is more certainty
as to the viability position and other options being available for
resolving viability concerns (for example, appointing a developer
partner). However, the scheme has been in contemplation for many
years and is needed to address existing issues in the area. Further
delay adversely affects landowners affected by the scheme due to
prolonged uncertainty. It could also risk funding sources which are
already committed or expected to be committed. The Council
considers that the scheme should come forward now and has already
committed to progressing the scheme as soon as practically
possible, subject to future approvals prior to implementation, and
with other options pursued in parallel.