Purpose

To seek cabinet approval to provide grant funding support to Advance Northumberland (Commercial) Ltd to bring the Cambois Quay into full operational use through the appointment of a dock operator.

Decision

RESOLVED that Cabinet:-

(a)     approve the award of a revenue grant of up to £3.744 million to Advance Northumberland (Commercial) Limited for the period from 1st  May 2026 to 31st  March 2036, to support eligible contributions towards the Cambois Quay Dock Base Facility Charge;

(b)     approve an initial allocation of up to £1.301 million from the Strategic Management Reserve and agree that, once this allocation has been fully applied, the remaining contribution of up to £2.443 million is to be met from future business rate retention income generated through the Blyth Energy Central Investment Zone Site;

(c)      delegate authority to the Executive Director of Transformation and Resources (Section 151 Officer), in consultation with the Executive Director of Place and Regeneration, to approve the Full Business Case and final grant award, subject to satisfactory independent appraisal, confirmation of affordability and funding availability, completion of all required due diligence, and a compliant subsidy control position;

(d)     delegate authority to the Executive Director of Place and Regeneration, in consultation with the Executive Director of Transformation and Resources (Section 151 Officer), to agree the final terms and enter into the grant funding agreement and any ancillary documentation;

(e)     require the grant funding agreement to include appropriate provisions covering eligible expenditure, evidence of defrayal, annual review, performance and financial monitoring, recovery of overpayments, clawback, subsidy control compliance, audit, suspension and termination, and to provide that the Council's annual and total contribution does not exceed the approved caps;

(f)      delegate authority to the Executive Director of Place and Regeneration, in consultation with the Executive Director of Transformation and Resources (Section 151 Officer), to approve non-material amendments during delivery, provided that these do not increase the Council's maximum financial commitment or materially alter the purpose of the grant; and

(g)       require a formal mid-programme review to be undertaken by the Executive Director of Place and Regeneration, in consultation with the Executive Director of Transformation and Resources (Section 151 Officer), to assess continuing need, value for money, progress towards a commercially sustainable multi-user operating model and the appropriateness of continued grant support.