Purpose

Amendment of the Working Capital Loan facility provided by the Council to Aequus Construction Ltd varying the terms of the loan. This is to progress business plan activity on sites outside the Council’s ownership within B&NES.

Decision

The Cabinet Member for Finance and Resources is asked to:

Note the use of the existing approved Bath Quays North capital budget

to fund costs of £156,333 directly attributable to the proposed site

development incurred to date by Aequus via the LLP. The 2027/28

Budget will need to be uplifted by an equivalent amount, funded by a

receipt from Aequus when these costs are transferred back to them

once the land transfer and the development business case are

approved.

Note the approved use of the Council’s Commercial Income Risk

Reserve of £181,677 under delegated authority by the S151 officer

who has consulted with the Cabinet Member for Resources and the

Chief Executive.

Delegate to the S.151 officer in consultation with the monitoring officer

the provision of a Deed of indemnity from the Council to the Board of

Directors of Aequus Construction Ltd.

Delegate to the S151 Officer in consultation with the monitoring officer

the provision of a letter of financial support from the Council to Aequus

to support the going concern assessment of Aequus as requested by

the company’s external auditors.

Reasons for the decision

The decision provides short-term financial assurance to sustain

Aequus Group while it implements its Sustain Plan in response to

market pressures, delayed development and reduced cashflow. The

time-limited indemnity and related measures support priority housing

delivery, including affordable and social rented homes at Bath Quays

North, protect directors from personal liability, support the going

concern assessment, and allow the Council to review Aequus’ future

role, governance and financial sustainability.

Alternative options considered

None