Decision Maker: Executive Board

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: April 10, 2025

Purpose:

Content: (1)  That it be noted the development was being promoted by Barnfield Blackburn Ltd., a Council joint-venture company with Barnfield Construction Ltd.   (2)  That it be noted the Darwen Town Deal programme was supporting the development with a grant towards abnormal costs.   (3)  That the plan of the development, attached to the report at Annex A, be noted.   (4)  That it be noted the Council was in advanced negotiations with Advanced Manufacturing Research Centre (AMRC) to take a long lease on Unit A with the unit to be managed by the Council’s property team as part of the Council’s investment estate.   (5)  That the acquisition of Unit A for a purchase price of £1.75m be approved in accordance with the terms set out in the report.   (6)  That the acquisition purchase price excluded tenant fit out costs which would be included as part of the lease negotiation with AMRC.   (7)  That the acquisition of Unit A be approved with an initial payment for the land of £150,000 plus VAT followed by a total payment of £1,600,000 plus VAT payable in five equal instalments against agreed construction milestones.   (8)  That the funding of the acquisition in 2025/26 be approved using £1,400,000 from the Development Investment Fund plus a virement of £350,000 to be reallocated from the anticipated underspend on the demolition of Shadsworth/Daisyfield Leisure Centres.   (9)  That delegated authority be granted to the Growth Programme Director and the Deputy Director of Legal and Governance to finalise terms and complete the necessary legal formalities for the Land Purchase and Development Agreements.   (10)        That delegated authority be granted to the Growth Programme Director and the Strategic Director Finance and Resources to complete the necessary legal formalities to request the repayment of Council shareholder funds from Barnfield Blackburn Ltd., following completion of developments.   (11)        That the application of an Option to Tax on the unit be approved once it had been purchased, to ensure that future rental income streams did not impact the Council’s VAT Partial Exemption position.