Agenda item

(NOTE:

1.     Councillor J.K. Howell, having earlier declared an interest in this item left the meeting during its consideration,

2.     The Director of Communities and Director of Regeneration and Policy left the meeting during consideration of this item)

Council was informed that the Executive Board, at its meeting held on the 4^th February, 2019 (Minute no 11 refers) had considered proposals for the provision of an appropriate consolidated finance facility to allow Cartrefi Croeso to commence the development of two schemes and to 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

UNANIMOUSLY RESOLVED that the following recommendations of the Executive Board be adopted:-

“To agree a funding facility as follows:-

1.     Maximum funding facility of £6m;

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

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

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

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 was confirmed and assessed as still being viable and the contractual arrangements were 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

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