Purpose

This report updates Cabinet and seeks approval
of the Outline Business Case and other key decisions regarding the
development and delivery of the Energy Central Campus Phase 2:
Energy Central Institute project.

Content

RESOLVED
that:-
Where NCC is a member
of Energy Central Campus Limited (ECC Ltd) and is acting as
guarantor to the Grant Funding Agreements enabling the delivery of
the Energy Central Campus Phase 2 project, Cabinet agrees and
approves the following:

 

3.1     NCC to act as
guarantor for the purposes of the Town Deal Grant Funding and NECA
funding Agreements, as required to meet due diligence requirements
of both NCC as the Accountable Body and NECA and for NCC to
cashflow the project and recharge ECC Ltd as Grant Funding
Recipient.
3.2     To vary the existing Members and
Framework Agreement to include reimbursement of NCC by ECC Ltd for
the costs incurred; for NCC to be responsible for delivering the
capital build of the Energy Central Institute on behalf of ECC Ltd
including award of contracts as the contracting
authority.
3.3     To delegate authority to the
Executive Director for Place & Regeneration, in consultation
with the Executive Director of Transformation and Resources and the
Portfolio Holder to enter into a Grant Funding Agreement between
Northumberland County Council as the project guarantor and
Northumberland County Council as NCCAB.
3.4     Subject to 3.2 above, to
delegate authority to the Executive Director for Place &
Regeneration in consultation with the Executive Director of
Transformation and Resources and the Portfolio Holder, to enter
into any contracts relating to the project subject to confirmation
of associated funding being in place and the appropriate/compliant
procurement processes being followed.
In relation to NCC as
the Accountable Body for the Town Deal funding Cabinet agrees and
approves the following:
3.5     To endorse the principles of the
Outline Business Case for Energy Central Campus Phase 2 –
Energy Central Institute, as set out in this report, and delegate
approval of the Outline Business Case to the Executive Director of
Place and Regeneration following consideration of the detail at
Programme Board. 
3.6     To approve the updating of the
capital programme as set out in table 5.
3.7     To delegate authority in
accordance with the Energising Blyth Local Assurance Framework, to
the Executive Director of Transformation and Resources following
consideration and recommendation by the Programme Board to approve
the Full Business Case and report any subsequent capital
implications to Cabinet via the Capital Strategy Group, for
inclusion in the Capital Programme.
3.8     Subject to written confirmation
that ECC Ltd have accepted the award of £5,499,951 North East
Combined Authority capital and revenue funding to be used as set
out in the report;
3.8.1 
To delegate authority to the Executive Director of Transformation
and Resources to enter into a Grant Funding Agreement between
Northumberland County Council as the fund Accountable Body and
Energy Central Campus Ltd as the applicant/funding recipient and
NCC as the project guarantor, following appraisal including subsidy
control consideration.
3.8.2 
To authorise the expenditure of up to £1,000,000 by ECC Ltd
prior to entering into the Grant Funding Agreement (to be
retrospectively covered by the Grant Funding Agreement), to allow
enabling works to commence prior to final determinations in
relation to the Full Business Case and main contract through
entering into a pre-construction services agreement (PCSA) once the
preferred contractor is confirmed.
In relation to
NCC’s role as landowner of the development site for the
Energy Central Campus Phase 2, project Cabinet agrees and approves
the following:
3.9     That NCC offer ECC Ltd a long lease
arrangement on the site at nil consideration subject to compliance
with the Local Government Act 1972 and Subsidy Control
advice.