Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 11, 2025

Purpose: This report updates Cabinet and seeks approval of the Outline Business Case and other key decisions regarding the development and delivery of the Energy Central Campus Phase 2: Energy Central Institute project.

Content: RESOLVED that:- Where NCC is a member of Energy Central Campus Limited (ECC Ltd) and is acting as guarantor to the Grant Funding Agreements enabling the delivery of the Energy Central Campus Phase 2 project, Cabinet agrees and approves the following:   3.1     NCC to act as guarantor for the purposes of the Town Deal Grant Funding and NECA funding Agreements, as required to meet due diligence requirements of both NCC as the Accountable Body and NECA and for NCC to cashflow the project and recharge ECC Ltd as Grant Funding Recipient. 3.2     To vary the existing Members and Framework Agreement to include reimbursement of NCC by ECC Ltd for the costs incurred; for NCC to be responsible for delivering the capital build of the Energy Central Institute on behalf of ECC Ltd including award of contracts as the contracting authority. 3.3     To delegate authority to the Executive Director for Place & Regeneration, in consultation with the Executive Director of Transformation and Resources and the Portfolio Holder to enter into a Grant Funding Agreement between Northumberland County Council as the project guarantor and Northumberland County Council as NCCAB. 3.4     Subject to 3.2 above, to delegate authority to the Executive Director for Place & Regeneration in consultation with the Executive Director of Transformation and Resources and the Portfolio Holder, to enter into any contracts relating to the project subject to confirmation of associated funding being in place and the appropriate/compliant procurement processes being followed. In relation to NCC as the Accountable Body for the Town Deal funding Cabinet agrees and approves the following: 3.5     To endorse the principles of the Outline Business Case for Energy Central Campus Phase 2 – Energy Central Institute, as set out in this report, and delegate approval of the Outline Business Case to the Executive Director of Place and Regeneration following consideration of the detail at Programme Board.  3.6     To approve the updating of the capital programme as set out in table 5. 3.7     To delegate authority in accordance with the Energising Blyth Local Assurance Framework, to the Executive Director of Transformation and Resources following consideration and recommendation by the Programme Board to approve the Full Business Case and report any subsequent capital implications to Cabinet via the Capital Strategy Group, for inclusion in the Capital Programme. 3.8     Subject to written confirmation that ECC Ltd have accepted the award of £5,499,951 North East Combined Authority capital and revenue funding to be used as set out in the report; 3.8.1  To delegate authority to the Executive Director of Transformation and Resources to enter into a Grant Funding Agreement between Northumberland County Council as the fund Accountable Body and Energy Central Campus Ltd as the applicant/funding recipient and NCC as the project guarantor, following appraisal including subsidy control consideration. 3.8.2  To authorise the expenditure of up to £1,000,000 by ECC Ltd prior to entering into the Grant Funding Agreement (to be retrospectively covered by the Grant Funding Agreement), to allow enabling works to commence prior to final determinations in relation to the Full Business Case and main contract through entering into a pre-construction services agreement (PCSA) once the preferred contractor is confirmed. In relation to NCC’s role as landowner of the development site for the Energy Central Campus Phase 2, project Cabinet agrees and approves the following: 3.9     That NCC offer ECC Ltd a long lease arrangement on the site at nil consideration subject to compliance with the Local Government Act 1972 and Subsidy Control advice.