Decision

That the Board:

1. Noted and consider the contents of this report including:

Appendix 1. Red Line Plans

Appendix 2.1 Summary of Heads of Terms – Sale and Acquisition

Appendix 2.2 Agreed Values for Land Purchases and Forecast SDLT

Appendix 3. BNP Paribas Land Valuation

Appendix 4. Summary Heads of Terms – Agreement SYMCA/CDC

Appendix 5.1 EMP05 Acquisition FBC

Appendix 5.2 EMP05 Strategic Paper

Appendix 5.3 EMP05 Assurance Summary

Appendix 6. Business Rates – DSA Business Rates Retention

Appendix 7. Updated Treasury Management and Prudential Indicators

Appendix 8. Financial Modelling

Appendix 9. Exit Strategy

Appendix 10. Risk Report

Appendix 11. DSA Business Plan Scenarios

Appendix 12. Achieving the Business Case

1. Noted that information contained in Appendices 1 – 12 (save for Appendix 4) is marked as exempt as it contains information relating to the financial or business affairs of the MCA and third parties, that in all the circumstances of the case the public interest of maintaining the exemption outweighs the public interest in disclosing the information and resolve to exclude the press and public from the meeting should be it be likely that exempt information would be disclosed if they remained.
2. Noted that negotiations with Peel have not resulted in any option to vary the existing lease between Peel and CDC however Peel have agreed to a sale of freehold land comprising the land that currently forms the areas leased to CDC together with neighbouring development land, railway land and infrastructure land as marked by the red line plan, and blue sections outside the red line at Appendix 1.
3. Noted the principal terms of the proposed sale and acquisition as set out in Appendix 2.1 and land purchase values as set out at Appendix 2.2.
4. Noted the independent valuation carried out on behalf of the MCA by BNP Paribas Real Estate at Appendix 3.
5. Noted and have full regard to the Risk Register set out at Appendix 10.
6. Approved the purchase by the MCA of the airport site and surrounding land as marked by the red line plan and blue sections at Appendix 1 on the terms set out in Appendix 2.1.
7. Granted delegated authority to the MCA’s Chief Executive, in consultation

with the Chief Finance Officer and the Monitoring Officer to:

a. Agree full terms of the acquisition and complete the transaction, subject to the completion of legal due diligence and final valuation supporting the proposed purchased price.

b. Provide landlord consent to the assignment of the current lease from CDC to FDL

c. Agree amendments to the terms of the current lease.

1. Noted that £121.62m of the funding previously earmarked from Gainshare funding allocated to City of Doncaster Council’s (“CDC”) Place Investment Plan will be retained by the MCA to fund the borrowing required for the purchase.
2. Noted that all previously committed borrowing will continue to be made available to the project and delegate to the MCA’s Chief Executive, in consultation with the Chief Finance Officer and Monitoring Officer authority to enter into transactions with FDL and any other party.
3. Approved the MCA taking a controlling shareholder position in FDL as set out in Appendix 4, and delegate authority to the MCA’s Chief Executive, in consultation with the Chief Finance Officer and Monitoring Officer to agree full terms and enter into a shareholding agreement and other arrangements with CDC and FDL to transact the transfer of shares.
4. Approved the proposed revolving credit facility from the MCA to FDL at a value not to exceed the provisions of the exit strategy described in Appendix 9 and to be considered as part of the MCA’s annual budget processes.
5. Approved the conversion of capital funding from the Integrated Settlement Local Growth pillar to revenue for up-to four years to support the costs of borrowing for the Gateway East development land as set out in Appendix 8.
6. Approved revisions to the MCA’s Treasury Management Strategy to accommodate the new borrowing requirements as set out in Appendix 7.
7. Approved the MCA entering into an agreement with CDC as set out in Appendix 4, relating to gainshare replenishment upon sale of the land following clearance of MCA debts and credit arrangements, and/or rights for CDC to acquire the airport site, and delegate authority to the MCA’s Chief Executive, in consultation with the Chief Finance Officer and Monitoring Officer to agree full terms.
8. Approved the MCA entering into an agreement with CDC relating to transition arrangements to cover the period between MCA acquisition of the airport site through to establishment of FDL, and delegate authority to the MCA’s Chief Executive in consultation with Chief Finance Officer and Monitoring to finalise full terms.
9. Noted the proposal for transition and management resource as set out in the report to be agreed in the forthcoming November Q2 Budget Report.