Purpose

Members to be updated on Breckland
Bridge

Decision

RESOLVED to
RECOMMEND to FULL COUNCIL to:
 
1)    
Approve new vision and
purpose of Breckland Bridge Ltd and approve the business plan 2026
– 2031.
 
2)    
Approve writing off
the working capital loan to Breckland Bridge Ltd and any unpaid
Colkirk scheme loans to Breckland Bridge Ltd (or its
subsidiaries).
 
3)    
Approve the provision
of funding to contribute towards the overhead costs of running
Breckland Bridge Ltd and its subsidiaries.

Reasons for the decision

It is prudent for the Council to review its
position and involvement in the Breckland Bridge joint venture
given the current proposals for Local Government Reorganisation in
Norfolk combined with current prevailing market conditions. The
challenges with the Colkirk scheme demonstrate the risks that can
be experienced in undertaking construction and development,
alongside the potential benefits of such activities. Nonetheless,
the completion of this scheme, including its associated affordable
housing, demonstrate our commitment to our communities and the need
for housing now within the District. These risks are constantly
monitored by the Breckland Bridge board of directors. To mitigate
any continued risk with undertake development directly it is
prudent to review the approach and vision of the joint venture.
 
The new business plan is supported by both
shareholders and provides a clear direction on the business of the
company for the next period. The business plan aims to maximise
value on existing sites where possible in disposal, delivering the
best possible returns whilst minimising risks to the council as the
shareholder whilst at the same time shielding any future unitary
authority against financial hardship as much as possible.

Alternative options considered

Option 1: Cabinet recommends to Council
to:

1)    
Approve the new vision and purpose of Breckland Bridge Ltd and
approve the business plan 2026-2031.

2)    
Approve writing off the working capital loan to Breckland Bridge
Ltd and any unpaid Colkirk scheme loans to Breckland Bridge Ltd (or
its subsidiaries).

3)    
Approve the provision of funding to contribute towards the overhead
costs of running Breckland Bridge Ltd and its subsidiaries.
 
Option 2: Cabinet does not recommend to
Council to:

1)    
Approve the new vision and purpose of Breckland Bridge Ltd or
approve the business plan 2026-2031.

2)    
Approve writing off the working capital loan to Breckland Bridge
Ltd and any unpaid Colkirk scheme loans to Breckland Bridge Ltd (or
its subsidiaries).

3)    
Approve the provision of funding to contribute towards the overhead
costs of running Breckland Bridge Ltd and its subsidiaries.