Content

Salford City Council - Record of
Decision
 
I, Councillor Jack Youd,
Lead Member for Finance, Support Services &
Industrial Relations, in exercise of the powers contained within
the Council Constitution, do
hereby:
 

1.           
Approve a £0.175m working capital loan to The Landing at
Media City UK Ltd.

 

2.           
Delegate authority to the Section 151 Officer in liaison with the
Monitoring Officer to negotiate and agree the final detailed
commercial terms of the loan.

 

3.           
Delegate authority to the Monitoring Officer to enter into and complete the loan agreement and any
other documents or agreements necessary to facilitate the above
recommendations.
 
The Reasons are:
The Landing at
MediaCityUK Limited (commonly known by its trading/operating name
of HOST (Home of Skills and Technology)) is a wholly owned
subsidiary of the City Council. HOST delivers multiple bootcamps
and digital skills initiatives to residents of the city and the
wider region. Due to delays in external funding and payments
quarterly in advance to our operator, HOST require a short-term
loan to ensure it can meet its liabilities in advance of cash being
received from externally funded programmes.
 
Options considered and rejected were:
Not to provide the loan but the
company would be unable to service its liabilities in the
short-term awaiting cash flow from external funding
sources.
 
Assessment of Risk:
Low
 
The
source of funding is:
Loan to be repaid,
initially funded through service specific reserves.
 
Legal
Advice obtained:

It is understood that the loan is to be made on
commercial market terms and therefore does not raise concerns from
a subsidy control perspective.

The Council has power to provide loans pursuant to
s.1 Localism Act 2011 and the Shared Legal Service will support the
Council in documenting the loan arrangements.
 
Financial Advice obtained:
Loan to be
provided on a commercial basis with a return to Salford City
Council.  This cash injection has been
factored into cashflow calculations and will enable to cover all
outstanding short-term liabilities and allow commencement of
programmes awaiting funding from externally funded grants paid in
arrears.
 
Procurement Advice
obtained: N/A
 
HR Advice
obtained: N/A
 
Climate Change Advice
obtained: N/A
 
The
following documents have been used to assist the decision
process:
The relevant documents contain
exempt or confidential information and are not available for public
inspection.
 
Contact Officer:
Paul Hutchings,
Head of Financial Management   Tel: 0161
793 2574
 

This decision is not
subject to consideration by another Lead Member.

 

The appropriate
scrutiny panel to call-in the decision is the Overview &
Scrutiny Board.

 

 
Signed:                                             
Dated: 20th June 2023
Lead
Member for Finance, Support Services & Industrial
Relations
 

 
For
Democratic Services use only
 
This decision was published on 20th June 2023.
 
This decision will come into force at 4.00 p.m. on
27th June 2023, unless it is called-in, in accordance with the
decision-making process rules.