Issue - meetings

To consider a report of the Cabinet Member for Resources, Commissioning & Governance.

The report sets out an overall strategic approach to supporting delivery of the Council’s ambitions for Stockport Town Centre West through the Mayoral Development Corporation (MDC) in the context of the Council’s existing blended approach in the Investment & Development Account across retail, leisure, office, hotel, light industrial, and residential sectors.  It proposes the creation by the Council of an investment facility including loan, equity and grant mechanisms to support the MDC which will enable it to access funding, subject to appropriate Council scrutiny and approval processes, to kick start development activity in Town Centre West.

The Cabinet is invited to:

·         approve the principle of a strategic approach to Council investment to support the regeneration of Town Centre West and the MDC as described in this report

·         approve the creation of a recyclable equity and loan facility with an upper limit of £100m to support the MDC delivery strategy as set out in Section 5 of this report

·         delegate authority for the appraisal, due diligence, and approval of individual loan agreements on a scheme-by-scheme basis to the Borough Treasurer and Corporate Director for Place in consultation with the Cabinet Members for Resources, Commissioning, & Governance and Economy & Regeneration.

Officer contact: Michael Cullen / Caroline Simpson, 0161-474-4631 / 5000, michael.cullen@stockport.gov.uk / caroline.simpson@stockport.gov.uk

The Cabinet Member for Resources, Commissioning & Governance submitted a report (copies of which had been circulated) inviting the Cabinet to consider a proposal to create an investment facility, including loan, equity and grant mechanisms, to support the Stockport Town Centre West Mayoral Development Corporation (MDC) by enabling it to access funding, subject to appropriate Council scrutiny and approval processes, to initiate and support development activity in Town Centre West.

The Cabinet Member emphasised the significance of the possible investment and the transformative ambitions of the Council and MDC for Town Centre West, with linkages to regeneration activity in the Town Centre and improvements to transport infrastructure.

A short promotional video for the MDC was played.

The Cabinet Member for Economy & Regeneration highlighted the linkages with the Cabinet’s vision for sustainable transport, and sustainable housing development, and the innovative approach being adopted to drive regeneration but also allow for investment in Council services and facilities for the future. He suggested the Council should be proud of the bold decisions it was taking with the MDC and investment.

The Cabinet Member for Sustainable Stockport welcomed the opportunities to provide much needed new and sustainable housing in the borough, and stressed the importance of ensuring a high proportion of affordable units. She also expressed the hope that the Council’s investment would also lead to further investment in Hollywood Park as a valuable open space in this part of Stockport.

The Leader of the Council confirmed that the GMCA had recently agreed to those elements needed to create the MDC, and expressed her belief that the proposals demonstrated how local government could take the lead in addressing housing needs. She stressed the importance and opportunity for the creation of a sustainable, vibrant neighbourhood in Town Centre West that would have a lasting impact on the borough and how regeneration was delivered. She acknowledged the hard work and contribution of a number of partners in bringing the MDC to fruition, including Homes England, the GMCA, GM Mayor and central Government, as well as partners in the private and third sector. She also highlighted that the innovative approach being adopted had been acknowledged nationally and was being touted as creating a blueprint for town centre and urban revival.

RESOLVED – That in relation to the Stockport Town Centre West Mayoral Development Corporation (MDC) investment facility

·           approval in the principle be given to a strategic approach to Council investment to support the regeneration of Town Centre West and the MDC as described in this report;

·           the creation of a recyclable equity and loan facility with an upper limit of £100m to support the MDC delivery strategy as set out in Section 5 of the report be approved;

·           authority be delegated to the Borough Treasurer and Corporate Director for Place Management & Regeneration, in consultation with the Cabinet Members for Resources, Commissioning, & Governance, Economy & Regeneration and for Sustainable Stockport, for the appraisal, due diligence, and approval of individual loan agreements on a scheme-by-scheme basis.

To consider a joint report of the Borough Treasurer and the Corporate Director for Place Management & Regeneration

The Council has set out an ambitious long-term vision for the future of Stockport’s Town Centre West that has led to the creation of Greater Manchester’s first Mayoral Development Corporation (MDC) to bring together the Council, Homes England, Greater Manchester Combined Authority, and the Greater Manchester Mayor and lead delivery by working in partnership with private sector landowners and developers.

This report sets out an overall strategic approach to supporting delivery through the MDC in the context of the Council’s existing blended approach in the Investment & Development Account across retail, leisure, office, hotel, light industrial, and residential sectors.  It also proposes the creation by the Council of an investment facility including loan, equity and grant mechanisms to support the MDC which will enable it to access funding, subject to appropriate Council scrutiny and approval processes, to kick start development activity in Town Centre West.

The Scrutiny Committee is invited to note and comment on the proposal to create an investment facility in support of the Stockport Mayoral Development Corporation and the regeneration of Town Centre West.

Officer contact: Michael Cullen or Caroline Simpson, 0161-474-4631 / 5000, michael.cullen@stockport.gov.uk / caroline.simpson@stockport.gov.uk

A joint report of the Borough Treasurer and the Corporate Director for Place Management & Regeneration was submitted (copies of which had been circulated) inviting the Scrutiny Committee to consider a proposed strategic approach to supporting the delivery of the Council’s ambitions for Stockport’s Town Centre West and the Mayoral Development Corporation (MDC) through the creation of an investment facility including loan, equity and grant mechanisms. This would allow the MDC to access funding, subject to appropriate Council scrutiny and approval processes, to kick start development activity in Town Centre West.

The Cabinet Member for Resources, Commissioning & Governance (Councillor Tom McGee) attended the meeting to respond to questions from the Scrutiny Committee.

The Chair highlighted the cross-party consensus on the Council for the aims and ambitions of the MDC.

The following comments were made/ issues raised:-

·         Councillors sought more information on the levels of interest from developers and other in the MDC and Stockport Town Centre West. In response it was stated that there had been significant interest, but that the initial phase of the MDC’s work would be around preparation and the assembly of land packages.

·         Assurance was sought on the MDC / Council’s ability to ensure coherence of the developments in the area. In response assurance was given that there would be planning controls, and other mechanisms, to control development, and that the Council was currently consulting on a development plan for the area to give clear direction for developers.

·         Further information was sought on the borrowing / lending arrangements that might be utilised. In response it was stated that the Council worked continuously to maximise the efficiency of its borrowing, and a key aim was to ensure the resources were ‘recycled’. The type of support available to potential developers would vary by the type of proposal, tenure of land etc. It was hoped that the investment would allow the MDC to leverage additional investment as well as securing Homes England funding. It was confirmed that the Council rarely undertaken variable rate borrowing.

·         Clarification was sought on the process for councillors to scrutinise decisions in relation to MDC funding. In response it was stated that there would be an annual business plan that would be subject to consultation with the Council, and any investment decisions would be included in the relevant Portfolio Performance and Resource Reports.

RESOLVED – That the report be noted.