Agenda item

CARTREFI CROESO CYFYNGEDIG - FINANCING REQUIREMENT

Minutes:

(NOTE:

1.     Councillor H.A.L. Evans had earlier declared an interest in this item;

2.     Mrs W. Walters ( Director of Regeneration and Policy) and Mr J. Morgan (Director of Communities) having earlier declared interests in this item left the meeting during its consideration by the Executive Board)

 

The Executive Board was reminded that at its meeting held on the 4th June it had agreed on financing arrangements for Cartrefi Croeso Cyfengedig to sustain its operating and scheme development costs on the basis detailed within the report. Subsequent to that report, the Executive Board considered a report proposing to secure an appropriate consolidated finance facility to allow Cartrefi Croeso Cyfyngedig to commence the development of two schemes and meet the on-going funding of operating costs and future scheme development costs, as well as the provision of headroom to commence future schemes identified as being viable.

 

Reference was made to the delegation arrangements to be made to the Chief Executive and Director of Corporate Service and a view was supported that paragraphs 5[d] and 5[f] within the report should be amended to read that the delegation be undertaken in consultation with the Executive Board Member for Resources

 

UNANIMOUSLY RESLOVED TO RECOMMEND TO COUNCIL THE FOLLOWING FUNDING FOR CARTREFI CROESO CYFYNGEDIG:-

 

11.1

A maximum funding facility of £6m

11.2

Duration of arrangement – 5 years. This was based on the loan being for the scheme developments and repaid within the business plan timescales

11.3

Interest at 1.6% above the rate set by the Public Works Loan Board reflecting the part security that will be available to the Council from the land works prior to the sale

11.4

Funding facility to be operated as an overdraft arrangement – funds only drawn when required and balance reduced as receipts received

11.5

Approval of the release of funding (up to the limit) is to be delegated to the Chief Executive and Director of Corporate Services, in consultation with the Executive Board Member for Resources, with the facility to be administered as follows:-

a)     Release of the construction funding only when the tenders have been returned, the scheme is confirmed and assessed as still being viable, and the contractual arrangements are in place,

b)     Development Agreement to be in place for the sale of the social housing to the Authority;

c)     Operating Costs: loan arrangements for circa £280k per annum until the company is viable without that element of support;

d)     Project Development Costs. The original allocated ceiling of £750k will suffice, and for monitoring and control of project development costs, itemised quarterly reports to be presented to the Chief Executive and Director of Corporate Services in consultation with the Executive Board Member for Resources;

e)     Future Scheme Construction. Approval of funding in principle [not exceeding facility ceiling in total] upon completion of site specific development appraisals and the release of construction  funding only when the tenders have been returned and the scheme is confirmed and assessed as still being viable and the contractual arrangements are in place;

f)      The conclusion of the detailed loan agreement to be delegated to the Chief Executive and the Director of Corporate Services in consultation with the Executive Board Member for Resources.

11.6

The Company to submit its 3 year business plan to the shareholder by 31st March annually so that the progress and viability of the funding arrangements can be monitored.

 

Supporting documents: