Purpose

The Council was awarded Capital grant funding
of £2,212,325 by Homes and Communities Agency (now Homes
England) in February 2015 for the acquisition, and subsequent
development, refurbishment and disposal of the land known as the
George and Railway hotel including part of a larger area referred
to as the island site. This supported the Council’s strategy
at that time to seek the appointment of a development partner and
deliver a comprehensive development and refurbishment of the
area.
The Cabinet report of 5 April 2022 included confirmation of the
need for a repayment of a grant supporting the purchase of the
George and Railway hotel from Homes England. The grant allows Homes
England to recover repayment from land sale proceeds arising less
pre-disposal project expenditure. The development, refurbishment
and sale did not progress, and the Temple Square site was
subsequently sold to Homes England and is an important site within
BTQ Phase 1.
Terms have been agreed with Homes England for full repayment less
agreed deductions of £282,482.90 relating to all project net
expenditure incurred by the Council. This means a total unspent
capital grant allocation of £1,929, 842.10 will now be
returned to Homes England. This decision has no budget impact on
either Capital or General Fund Revenue.

Content

To return the unspent Capital grant allocation
of £1,929,842.10 to Homes England in accordance with the
requirements of the grant agreement.

Alternative options considered

Option 1 - As stated above, the term of the
grant allows Homes England to recall the grant if unspent. Homes
England has requested that the unspent grant is returned so there
are no other options other than to do this.