Issue - meetings

This report asks the Executive Member to recommend that the Executive approve a loan of £50,000 from the Council to Science City York Company Limited by Guarantee to assist with its cash flow.

 Consideration was given to a report which sought approval to make a loan of £50,000 to Science City York Company Limited by guarantee (CLG) to assist with its cash flow whilst drawing down on external funding.

Science City York was jointly owned by the City of York Council and York University and was responsible for delivering contacts for business support from Yorkshire Forward. Following results of a cash flow forecast the company had requested the loan to ensure that they were in a firm financial position to deal with cash flow arising from delays in payment of grant claims from Yorkshire Forward. It was reported that the University of York had already agreed their loan to the company.

The options the Panel considered were to either approve a loan to the CLG or not to do so.  The loan would cover short term cash flow issues for the company caused by the delay in expenditure being covered by the receipt of external grant income.  It was reported that Officers had worked with the CLG to prepare their cash flow forecasts.  The option of not approving a loan would create significant risk to the cash flow of the CLG at a time when it was seeking further external funding from European Regional Development Funds and Yorkshire Forward.

Advice of the Advisory Panel

That the Executive Leader be advised to recommend that the Executive approve a loan of £50,000 from the Council to the Science City York Company Limited by guarantee to assist with its cash flow.

Decision of the Executive Member for Leader

RESOLVED:That the advice of the Advisory Panel be accepted and endorsed.

REASON:            To support the development of Science City York and the contribution it makes to the City and the Council’s strategic objectives.  The loan will enable the establishment of Science City York as a company limited by guarantee to proceed on a firm financial basis and fulfil contractual requirements to Yorkshire Forward. 

 Consideration was given to a report which sought approval to make a loan of £50,000 to Science City York Company Limited by guarantee (CLG) to assist with its cash flow whilst drawing down on external funding.

Members were reminded that Science City York was jointly owned by the City of York Council and York University and that they were responsible for delivering contacts for business support from Yorkshire Forward. Following results of a cash flow forecast the company had requested the loan to ensure that they were in a firm financial position to deal with cash flow arising from delays in payment of grant claims from Yorkshire Forward. It was reported that the University of York had already agreed their loan to the company.

It was reported that Officers had worked with the CLG to prepare their cash flow forecasts and that the option of not approving a loan would create significant risk to the cash flow of the CLG at a time when it was seeking further external funding from European Regional Development Funds and Yorkshire Forward.

Members questioned the level of the interest rate proposed on the loan and details of the call in period.

Advice of the Advisory Panel

That the Executive Leader be advised to recommend that the Executive approve a loan of £50,000 from the Council to the Science City York Company Limited by guarantee to assist with its cash flow. ^1.

Decision of the Executive Leader

RESOLVED:That the advice of the Advisory Panel be accepted and endorsed.

REASON:            To support the development of Science City York and the contribution it makes to the City and the Council’s strategic objectives.  The loan will enable the establishment of Science City York as a company limited by guarantee to proceed on a firm financial basis and fulfil contractual requirements to Yorkshire Forward.