Decision

1.      That,
subject to Council approval of recommendation 2. below, Cabinet
approves:
 

(i)    the Council enters into the tripartite
agreement with the Arts Council England and Paignton Picture House
Trust, in accordance with the draft agreement as set out at
Appendix 2 and subject to (vi) below;

 

(ii)   the Council acts as the accountable body for
the Delivery Partnership;

 

(iii)  the Council indemnifies the Paignton
Picture House Trust that the project will be delivered with
reasonable skill and care and provides a clear and agreed mechanism
for the Paignton Picture House Trust to have oversight of any
decision the Council makes in executing the project including the
right to dispute decisions through a defined escalation process of
adjudication and arbitration;

 

(iv)  the Council requires a charge to be made on the
freehold title of the Paignton Picture House under the same terms
as that required by the Art Council England but for a period of 20
years;

 

(v)   the formalisation of the
Delivery Partnership by the creation of a Project Delivery Board
with Terms of Reference negotiated with the Paignton Picture House
Trust and the Arts Council England that reflects the delivery
requirements of (i, ii, iii); and

 

The Project Governance
Structure under the Project Delivery Board to include:

 

a)    Ensure the Council has oversight of
all expenditure associated with the project where the Councils
underwriting risk is exposed.

 

b)    That the Council has the ultimate authority to approve,
review and reject payments to all contractors, suppliers and the
Trust, necessary to deliver the project.

 

(vi)  that the actions necessary to facilitate
the agreements in (i, ii, iii, iv, v) through negotiation with the
Paignton Picture House Trust and the Arts Council, and the wider
supply chain, are delegated to the Director of Regeneration, in
consultation with the Cabinet Member for Place Development and
Economic Growth, the Director of Finance and the Monitoring
Officer, and signed/in consultation with the Councils Statutory
Officers as the nature of each agreement or action requires by the
Council’s Constitution.

 
2.      That Cabinet recommend to
Council the following:
 

(i)    that an additional £900,000 be
allocated from the Future High Street Fund to delivery of the
Paignton Picture House project; and

 

(ii)   that the Council underwrites the
delivery of the project up to a maximum of £1.6m, to be
funded from unsupported borrowing, if required.  The Council will limit the financial liability
through robust cost oversight of the project and seek to secure any
other applicable funding sources.

Reasons for the decision

The proposals ensured
that the project was developed in order to contribute towards
meeting the objectives of the Paignton Town Centre Masterplan.

Alternative options considered

·        
To do nothing; this option was discounted due to the risk that the
grant funding already secured was time limited and without it the
building would remain unrestored and continue to be listed on
Historic England’s, Heritage at Risk Register.
·        
For the Council to grant fund only, this option was discounted as
the Arts Council England required evidence that the whole scheme
was funded including the currently pledged but unsecured funding
contributions.
·        
To underwrite the costs of the scheme and for the Council to take
the Capital Cost Risk, this was the preferred option and was
considered the best option that would give security to all funders
that the scheme would be delivered as required by the Listing
Building Consent. This option would also ensure that £5m of
external grant funding was secured for the Project and the
regeneration of Paignton Town Centre.