Issue - meetings

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

(NOTE: the Chair is of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with section 100B(4)(b) of the Local Government Act 1972 in order that the Cabinet could consider the matter and take action to ensure the Council was able to exercise the necessary delegations previously approved by the Cabinet.  It would not be possible for the matter to wait until the next meeting of the Cabinet as it is likely that investment decisions would need to be taken in advance of that date).

In line with the Council’s ambitious long-term vision for the future of Stockport’s Town Centre West, Cabinet approved the creation of a strategic investment facility at its meeting on 1 October 2019 to support investment which could kick start the regeneration of the Town Centre West area.

As the Council has worked through potential investment opportunities in line with the principles set out in the October report, it has become clear that the wording of the delegation for the approval of investments does not allow for equity or grant investment to be approved.

This report recommends an amendment to the wording of the approved delegated authority to allow the approval of equity and grant investments, as well as loan investments.

The Cabinet is recommended to amend its decision taken in response to the recommendation at paragraph 8.1.3 in the 1st October Cabinet report to read:

(1) 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 investment agreements (including but not limited to land assembly, loan, equity, and grant agreements) on a scheme-by-scheme basis.

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

(NOTE: the Chair was of the opinion that this item, although not included on the agenda, should be considered as a matter of urgency in accordance with Section 100B(4)(b) of the Local Government Act 1972 (as amended) in order that the Cabinet could consider the matter and take action to ensure the Council was able to exercise the necessary delegations previously approved by the Cabinet.  It would not be possible for the matter to wait until the next meeting of the Cabinet as it is likely that investment decisions would need to be taken in advance of that date).

The Deputy Leader of the Council and Cabinet Member for Resources, Commissioning & Governance submitted a report (copies of which had been circulated) noting that the Cabinet had previously given its approval the creation of a strategic investment facility at its meeting on 1 October 2019 to support investment which could kick start the regeneration of the Town Centre West area.  This was published as an executive decision with the reference CAB191.

The report stated that as the Council had worked through potential investment opportunities in line with the principles set out in the October report, it had become clear that the wording of the delegation for the approval of investments did not allow for equity or grant investment to be approved.

RESOLVED – (1) That the Cabinet gives its approval to the amendment of its         previous decision, and has agreed that 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 investment agreements (including but not limited to land assembly, loan, equity, and grant agreements) on a scheme-by-scheme basis.

(2) That it be noted that the remaining elements of decision reference CAB191 in response to the recommendations in paragraphs 8.1.1 and 8.1.2 of the October report remained unaffected by this amendment and decision as do the context, rationale, and investment principles set out in the main body of the October report.