Purpose

The purpose of this report is to provide
Cabinet with the update and outline of the most recent variation to
the Ashwood Enterprise Zone (EZ) business case application from
Advance Northumberland to the NELEP.

Content

RESOLVED
that:-
 
(a )     Cabinet approve the additional
loan funding of £2,537,977 to the NECA to fund the proposed
improvement works to Ashwood Enterprise Zone bringing the total
loan funding provided by the Council for the scheme to
£6,018,254, subject to a separate funding agreement with NECA
and Advance Northumberland (Commercial) Ltd or variation to the
existing tripartite agreement dated 07 February 2020, which sets
out a repayment schedule for the additional £2,537,977
million loan plus interest;
 
(b )     Cabinet approve delegated
authority to the Executive Director for Place and Regeneration, in
consultation with the s151 Officer to enter into either:
•         a
variation to the tripartite Funding Agreement (07.02.2020),
or
•         a new
tripartite Funding Agreement, between the Council, Advance
Northumberland (Commercial) Limited and NECA in respect of the
Ashwood Business Park, Enterprise Zone Infrastructure works, such
agreement to include the obligation for Advance Northumberland
(Commercial) Limited to meet any potential shortfall in Business
Rates;
 
(c )     Cabinet note the contents of the
report, in particular the risks associated with the proposal and
the measures proposed to mitigate the risk; and
 
(d )     Cabinet note that the proposed
additional loan of £2,537,977 million is not included within
the Council’s capital budget and agree that the
Council’s approved 2024/25 capital budget is increased
accordingly.