Purpose

Proposed
Decision:
To approve up to £6m of Kent and Medway
Business Funds (KMBF) being made available to No Use Empty (NUE)
Commercial scheme to still achieve the outcomes of the KMBF schemes
in terms of boosting employment and economic growth within Kent, as
well as generating income for KCC, both through interest
payments/management fee and increasing business rate growth.
 

Reason for
Decision

 
A decision is required
to:
 
Agree up to £6m from the
Kent & Medway Business Loan Fund (KMBF) being made available
for No Use Empty (NUE) to administer short term secured loans to
support specific NUE Commercial projects which would provide wider
economic and employment opportunities and benefits as well as
generating income, through interest payments. The value of an
individual loan under this proposal is likely to be more than the
£600k cap on loans which are administered by the KMBF team;
and
 
agreement of the Section 151
officer or the Cabinet Member for Finance as appropriate for
approval to spend: and
 
agree that delegated authority
be given to the Corporate Director for Growth Environment and
Transport to take appropriate actions, including but not limited
to, entering into legal agreements (loan agreements and legal
charges), consider and approve requests which may require consent
and discharge of legal charges, as necessary to implement this
decision.
 
·     
Background
 
Business Units
NUE funded a pilot project -
The Tridax Business at Honeywood
Parkway, Whitfield, Dover, creating 24 new business units
(completed December 2023) using KCC Treasury Investment funds. The
project has been an immense success. NUE are seeking to borrow KMBF
funds to support further NUE commercial projects to support the
creation of additional high quality commercial/workspace in Kent to
meet the needs of local firms.
 
 
Options
 
(a) 
Do optimal – to proceed as planned with KMBF
funds which will reduce the call on KCC funds (Treasury Investment
funds and/or Capital Programme) for the creation of new business
units.
 
(b) 
Do maximum – to proceed as planned with
Treasury Investment funding which will reduce the funding available
for new build residential homes if up to £6m of the
£28m was ring fenced for the creation of new business
units.
 
Framing Kent’s
Future 2022-26:

https://www.kent.gov.uk/about-the-council/strategies-and-policies/framing-kents-future
 
Priority 1Levelling Up
Kent - Our commitment is to support the Kent
economy to be resilient and successfully adapt to the challenges
and opportunities it faces over the coming years.
 
 Securing Kent’s Future:

https://democracy.kent.gov.uk/documents/s121235/Securing%20Kents%20Future%20-%20Budget%20Recovery%20Strategy.pdf
 
The decision does not place any
additional financial burden on KCC as KMBF-NUE will be delivered
with external funds and generate an income stream.
 
Kent & Medway
Economic Framework:
Action Area 4: Supporting the conditions for
growth by responding to local need for workspace.
 
 

Decision

As Cabinet Member for Economic Development and
Coastal Regeneration I agree to:
 
(a)       AGREE to up to
£6m from the Kent & Medway Business Loan Fund (KMBF)
being made available for No Use Empty (NUE) to administer short
term secured loans to support specific NUE Commercial projects
which would provide wider economic and employment opportunities and
benefits as well as generating income, through interest payments.
The value of an individual loan under this proposal is likely to be
more than the £600k cap on loans which are administered by
the KMBF team; and
 
(b)       DELEGATE to the
Corporate Director of Growth, Environment and Transport in
consultation with the Section 151 officer or the Cabinet Member
responsible for Finance for approval to spend: and
 
(c)        DELEGATE to
the Corporate Director for Growth Environment and Transport to take
appropriate actions, including but not limited to, entering into
legal agreements (loan agreements and legal charges), consider and
approve requests which may require consent and discharge of legal
charges, as necessary to implement this decision as shown at
Appendix A.