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Agreed:
 
RECOMMENDED that Council:-
 
(1) 
note the findings of the Local Partnership LLP
report presented at the meeting;
(2) 
note ECL’s achievements to date;
(3) 
that, notwithstanding the recommendation from Local
Partnerships to wind down the operations of ECL, officers recommend
that the company be retained for the limited purpose of holding and
managing property;
(4) 
grant delegated authority to the Chief Executive, in
consultation with the Leader of the Council to facilitate
recommendation no. 3 above to reduce ECL’s activities as
follows:
 
a)   
the Council enters into a business sale agreement
with ECL, whereby the Council acquires all of ECL’s assets
(with the exception of the six leasehold flats in the Guildhall
Shopping Centre), including any work in progress in return for
proper consideration, in the form of a release of ECL from its
obligations under the Loan Agreements. The sale agreement shall
include a novation of all contracts save those that may be
terminated by ECL with the Council’s agreement;
 
b)   
in the likely event that the value of the assets to
be acquired from ECL is not sufficient to repay the loan to the
Council, then delegated authority be granted to the Chief
Executive, in consultation with the Leader and Section 151 officer,
to write off any shortfall; and
 
c)   
thereafter, ECL, in a much reduced
capacity shall continue for the purpose of holding and managing
property and, in particular, the 6 Guildhall flats.
 
(5) 
agree that any staff implications are dealt with in
accordance with its Organisational Change Policy;
(6) 
extend the ECL appointments of the Interim Managing
Director and the two non-Executive Directors until such time as
they are no longer required to assist with the reduction of the
company’s activities, with the termination of those
appointments delegated to the Chief Executive;
(7) 
grant delegated authority to the Service Lead -
Legal Services to amend the Management Agreement to reflect the
changes to the remit of ECL;
(8) 
agree that SMB reflect on the Local Partnerships
report as well as work being undertaken by the District Councils
Network on commercial companies owned by local authorities to
produce a report in due course setting out principles for how the
Council will enter into any commercial ventures in the
future;
(9) 
agree that the Chief Executive be tasked to liaise
with One Public Estate to negotiate an amendment to the grant
conditions with the aim of retaining the Brownfield Land Release
Funding (BLRF) funding where possible; and
(10)     
agree to receive a report, if necessary, setting out
a site disposal strategy in the likely event of a shortfall on the
ECL loan after the Council acquires ECL’s assets.
 
Reason for Decision: As set
out in the report.