Decision

RESOLVED: Cabinet;
1.    
Authorised the Assistant Director Assets &
Environment in consultation with the Executive Director Finance
to:
2.    
Approved entry by the Council into agreements A
and/or F as described in the report.
3.    
Provided Agreements A and F are entered into,
approve entry by the Council into Agreement D.
4.    
Subject to the agreement of the Executive Director
Finance and provided Agreements A and F are entered into, approve
entry by the Council into any or all of Agreements B, C, and E
following due diligence and sufficient security for its
investment.
5.    
Authorised the Executive Director Finance to create
of a capital budget of £375k for the purposes of Agreement E
if Agreement E has been entered into and the triggers have been met
or appear likely to be met in the near future, subject to the
consideration and approval of a business case for this
element.
6.    
Endorsed (noting the decision to lend rests with the
Executive Director Finance) the proposed lending as set out in the
descriptions of Agreements B and C subject to further due diligence
and adequate security of investment.
7.    
Recognised that the previous NPH social housing
scheme at Belgrave House is not proceeding and that the property
will come into the Council’s General Fund for development
proposals to be taken forward.
 
REASONS RESOLVED:
1.    
To secure for the Council effectively unfettered
control and use of Belgrave House.
2.    
To avoid any potential for dispute about the
Council’s right to install and use renewable energy equipment
on the Grosvenor Centre car park.
3.    
To make suitable arrangements for the protection of
money the Council loans out.
 
ALTERNATIVE OPTIONS:
1.    
To do nothing. This would leave the Council unable
to make productive use of Belgrave House whilst continuing to incur
costs to keep it in order. It would also not remove the potential
for dispute over its rights to install renewable energy equipment
on the Grosvenor MSCP.
2.    
To enter into the proposed agreements. This would
have the benefits and costs set out in Table 1 of the
report.
3.    
To seek to negotiate a different set of agreements.
Whilst this is theoretically possible, it is considered that the
proposed suite is as good a deal the Council is likely to be able
to obtain.
4.    
To use compulsory purchase powers to acquire a new
lease of Belgrave House free of the restrictions. This is possible,
but would involve its own costs, timescale, and risks. A compulsory
purchase order is likely to be opposed, meaning that significant
costs would be incurred whether or not the order was confirmed by
the Secretary of State. It is also possible that the new lease
would be found to have a non-zero value, which the Council would
then need to pay for it.