Purpose

The s106 agreement for Phase 1
Northstowe provides for a revenue support contribution in the early
years of operation of the Phase 1 Community Buildings. This sum is
a distinct allocation within the Management and Maintenance
contribution, held in an Escrow like account by the district
council, which requires the joint approval of the developer (Urban
& Civic) to release payment.
 
The Unity Centre is currently
nearing completion in the Phase Local Centre. This building has
been delivered by South Cambridgeshire District Council.
The freehold
interest in the land was transferred to South Cambridgeshire
District Council as part of a wider parcel of land purchased by the
district council from L&Q in 2021.
 
Northstowe Town Council made a request for Asset Transfer of the
Unity Centre, to bring its operation under their control. This was
considered by Cabinet in June 2025 and was agreed in principle
subject to the detail of the Agreement to Lease being finalised, a
decision delegated to the Cabinet member for Communities and the
Chief Operating Officer. A decision has been made to enter into
this Agreement to Lease (and a notice of the decision published (06
February 2026). The Agreement to Lease requires the town council to
provide true and accurate details of its
annual financial projections for the Landlord’s approval.
Updated financial projections have been provided by Northstowe Town
Council’s Responsible Financial Officer (received 13/02/2026)
and evidence that £60,000 of revenue support will be required
in 2026/2027, Year 1 of the Unity Centre’s operation, the
maximum available to support the operation of the Phase 1 Community
Buildings in any one financial year. This represents an increase in
the projected revenue support requirement (of £30,000)
previously provided in November 2025 using confirmed costs and
revised income projections, as the earlier forecast was reliant to
a greater extent on estimates.

Content

To
award £60,000 revenue support from s106 funds to Northstowe
Town Council, in the financial year 2026/27

Reasons for the decision

The
Phase 1 s106 agreement for Northstowe specifically sets aside a
contribution for revenue support in the early years of operation of
the community buildings. The financial projections provided by the
tenant (Northstowe Town Council) evidence a revenue contribution of
this value is justified to sustain the operation in year 1 of the
operation. Net operating losses remaining will be met by Northstowe
Town Council.

Alternative options considered

Option 1: to reject the revised
costs and provide the £30,000 originally identified in the
Town Council’s business plan as the s106 revenue support
requirement in November 2025.
Reason
for rejection: The Town Council has continued to develop and refine
its business plan and has adjusted to reflect the real costs, and
modifying its income projections based on actual demand from user
groups for lettings as the Unity Centre approaches
completion.