Issue - meetings

RECOMMENDED:That Council approve an increase in the Venture Fund of £435k (from £1,692k to £2,127k) to fund the Early Years deficit, as set out in paragraph 41 of the report, with the Executive wishing to see substantial efforts made to reduce this figure before the Full Council meeting in October.

REASON:      To enable the project to proceed, and in view of the fact that the Venture Fund balance is sufficient to cover the deficit, which can be repaid in future years from the estimated NPV savings of the Accommodations Project.

[See also under Part A Minutes]

Members considered a report which provided an update on the progress of the Accommodation Project and sought endorsement of a property exit strategy to vacate De Grey House and 1A and B Swinegate Court East in 2011 and approval for an increase in the use of the Venture Fund to cover the Early Years Deficit.

On 24 June 2010, the Planning Committee had approved plans for the new Headquarters building.  Subject to listed building consent and the developer satisfying the terms of the Conditional Sale and Development Agreement, work was scheduled to start on site in early November.  An indicative timetable for completion of the project was set out in paragraph 33 of the report.  On 25 June 2010, the Accommodation Project Board had considered three options for a property exit strategy, as set out in paragraph 16.  The option approved, Option C, was to vacate De Grey House and Swinegate Court East, exercise lease break dates in March and May 2011 respectively, retain existing premises and where applicable renegotiate leases in line with the HQ completion date, and relocate displaced staff within the Council’s existing accommodation portfolio.  The exit strategy would remain under constant review in consultation with the ‘More for York’ efficiency programme.

It was reported that the Early Years deficit figure of £1.93m reported in December 2009 had now risen to £2.25m.  This was due to a number of amendments and corrections to the project model, the inclusion of 2009/10 actual revenue costs and 2010/11 budget estimates and a further adjustment to reflect the fall in interest rates.  It was suggested that Members recommend to Council an increase in the use of the Venture Fund to cover this sum.

RECOMMENDED:That Council approve an increase in the Venture Fund of £435k (from £1,692k to £2,127k) to fund the Early Years deficit, as set out in paragraph 41 of the report, with the Executive wishing to see substantial efforts made to reduce this figure before the Full Council meeting in October.

REASON:      To enable the project to proceed, and in view of the fact that the Venture Fund balance is sufficient to cover the deficit, which can be repaid in future years from the estimated NPV savings of the Accommodations Project.