Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: December 10, 2024

Purpose:

Content: RESOLVED: Cabinet; 1.     Authorised the Assistant Director Assets & Environment in consultation with the Executive Director Finance to: 2.     Approved entry by the Council into agreements A and/or F as described in the report. 3.     Provided Agreements A and F are entered into, approve entry by the Council into Agreement D. 4.     Subject to the agreement of the Executive Director Finance and provided Agreements A and F are entered into, approve entry by the Council into any or all of Agreements B, C, and E following due diligence and sufficient security for its investment. 5.     Authorised the Executive Director Finance to create of a capital budget of £375k for the purposes of Agreement E if Agreement E has been entered into and the triggers have been met or appear likely to be met in the near future, subject to the consideration and approval of a business case for this element. 6.     Endorsed (noting the decision to lend rests with the Executive Director Finance) the proposed lending as set out in the descriptions of Agreements B and C subject to further due diligence and adequate security of investment. 7.     Recognised that the previous NPH social housing scheme at Belgrave House is not proceeding and that the property will come into the Council’s General Fund for development proposals to be taken forward.   REASONS RESOLVED: 1.     To secure for the Council effectively unfettered control and use of Belgrave House. 2.     To avoid any potential for dispute about the Council’s right to install and use renewable energy equipment on the Grosvenor Centre car park. 3.     To make suitable arrangements for the protection of money the Council loans out.   ALTERNATIVE OPTIONS: 1.     To do nothing. This would leave the Council unable to make productive use of Belgrave House whilst continuing to incur costs to keep it in order. It would also not remove the potential for dispute over its rights to install renewable energy equipment on the Grosvenor MSCP. 2.     To enter into the proposed agreements. This would have the benefits and costs set out in Table 1 of the report. 3.     To seek to negotiate a different set of agreements. Whilst this is theoretically possible, it is considered that the proposed suite is as good a deal the Council is likely to be able to obtain. 4.     To use compulsory purchase powers to acquire a new lease of Belgrave House free of the restrictions. This is possible, but would involve its own costs, timescale, and risks. A compulsory purchase order is likely to be opposed, meaning that significant costs would be incurred whether or not the order was confirmed by the Secretary of State. It is also possible that the new lease would be found to have a non-zero value, which the Council would then need to pay for it.